Market News

 

Importers Eye New Tender Strategies Heading Into 2021

The high volatility experienced throughout 2020 on TRANSPAC corridors is leaving many importers questioning their tender strategies. 

With the upward pressure on sport market rates having no real end in sight, it begs the question whether 12-month rate validity is achievable or even advisable going into 2021? Rates on the TRANSPAC corridors are up over 150% and even if the market settles back a bit, the strategy of trying to lock-in for longer periods seems far less attractive than it once did. This could lead to new tender strategies where 90-day rates are more the norm. Supply chain budgeting will still put pressure on procurement to obtain 12-month validity if possible.

This could result in be multiple rate validity request scenarios in 2021:  90-day, 6-month and 12-month may all be on the negotiating table.

Trade Lanes Market Updates

TPEB (Asia – North America)

• Space situation remains critical with carriers booking at or above 100% capacity
• We recommend pre-booking 2-4 weeks in advance
• Extensive vessel delays due to severe congestion at Asian hubs as well as severe weather (typhoons)
• Equipment situation remains critical across Asia

ISC (India – North America)

• Space situation remains critical with carriers booking at or above 100% capacity
• Recommend pre-booking 4 weeks in advance ex POL & 6 weeks in advance from ICDs
• Equipment situation remains critical across India, especially severe at ICDs

Merchandise Processing Fee Increase

U.S. Customs and Border Protection (CBP) has announced that certain customs user fees will increase effective October 1, 2020, per the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985.

CSMS Message #44153809 announced the update and will apply the increase to imported goods effective October 1st 2020.

• Merchandise Processing Fee (MPF) for formal entries will increase to $27.23 (minimum) and $528.33 (maximum)
• Fees for Informal Entry or release for automated entries increased to $2.18 For a full list of user fees that increased, please review the Federal Register Notice 85 FR 45646 published on July 29, 2020.