03.22.2018 | Additional Import Steel and Aluminum Tariffs
As you may already know, President Trump issued two proclamations - imposing a 25% import tariff on steel and a 10% import tariff on aluminum - from all countries except Canada and Mexico. These additional tariffs will apply to articles entered or withdrawn from warehouse for consumption as of March 23, 2018.
Kuehne + Nagel brokers are prepared to comply with the tariffs requirements for affected articles of steel and aluminum. If you have any questions regarding your potential duty exposure for the tariffs described above, please contact your Kuehne + Nagel representative.
For the new steel tariff, articles are defined in the Harmonized Tariff Schedule (HTS) as follows. The order does not apply to downstream products made with steel or steel parts, such as structures, reservoirs, tanks, containers, wire, etc.
- 7206.10 through 7216.50
- 7216.99 through 7301.10
- 7302.10, 7302.40 through 7302.90
- 7304.10 through 7306.90
For the new aluminum tariff, articles are defined in the Harmonized Tariff Schedule (HTS) as follows.
- 7601 – unwrought aluminum
- 7604 – aluminum bars, rods and profiles
- 7605 – aluminum wire
- 7606 / 7607 – aluminum plate, sheet, strip, and foil (flat rolled products)
- 7608 / 7609 – aluminum tubes and pipes and tube and pipe fittings
- 7616.99.5160 / 7616.99.5170 – aluminum castings and forgings
On March 19, 2018, the Department of Commerce’s Bureau of Industry and Security (BIS) published in the Federal Register, an interim final rule outlining the procedures for parties in the U.S. to submit requests for exclusions from the actions taken by the President in regards to the steel and aluminum tariffs. Exclusion requests may only be submitted by individuals or organizations using steel in business activities inside the U.S. Requests must be filed electronically on regulations.gov using the specific docket numbers. Steel interim rule can be found by searching BIS-2018-0006 and aluminum interim rule can be found by searching BIS-2018-0002. The Federal Register notice may be found here.
To read the presidential proclamations in full, click following links:
02.01.2018 | ELD Mandate - Plan your Shipments in Advance
We are still seeing that the implementation of the ELD mandate is affecting container truck capacity, rates, productivity, and driver shortages throughout the USA. As always, Kuehne + Nagel strives to accommodate your needs and asks for your continued cooperation and understanding during these challenging times.
- Load to driver availability ratio is running at a minimum of 10:1 in some areas, especially throughout the Southeast and Midwest.
- Increased volumes and longer turn times for loads are affecting chassis shortages at terminals and rail ramps in Dallas & Houston, TX; Chicago, IL; Minneapolis, MN; Omaha, NE; Denver, CO; Cincinnati & Columbus, OH; Memphis, TN; Atlanta & Savannah, GA; Charleston, SC; Charlotte, NC and Jacksonville, FL.
- Because of port and terminal congestion, ports and rail-ramps are blocking off areas to cargo pick-up so they can free resources to work on incoming vessels or trains. This results in cargo not being accessible until these areas are opened up again.
- Higher levels of pre-pulling of loads being stored on trucker’s yards to minimize port and terminal demurrage costs. This obviously adds to the chassis shortages.
- Lead-time for driver availability, in some areas is as high as 2 weeks!
- Ocean carriers are unable to manage the door moves within the allowed free time, which is resulting in the assessment of port/rail demurrage.
- Container trucking vendors are having to raise driver pay and other incentives in an effort to retain their services and are ultimately now raising rates to customers.
We do not anticipate any further changes in the near term. Not only does the current backlog in some areas need to be reduced, but we also anticipate a surge in import volumes as the pre-Chinese New Year shipments from Asia start to arrive at US ports and rail-ramps in February and March.
We will continue to monitor the situation and provide further updates. Please feel free to reach out to your local Kuehne + Nagel representative for any questions or concerns regarding this topic.
12.22.2017 | CBP updates on Merchandise Processing Fee (MPF) and Generalized System of Preferences (GSP)
We want to remind you of two important updates from the U.S. Customs and Border Protection - Click here
10.13.2017 | Kuehne + Nagel San Francisco, CA Update
KN’s Disaster / Business Recovery Center is monitoring the fires in Northern California. We are pleased to advise that none of our employees have been affected by the fires in Northern California. Our KN San Francisco, CA (SAL) office is operating as normal. The FAA has reported flight delays due to lower visibility at SFO Airport, please check with airlines for the latest status.
We will continue to monitor and advise of any news affecting our operations.
10.11.2017 | Kuehne + Nagel San Juan, PR Update
Please be advised that Kuehne + Nagel San Juan, PR continues to be fully operational under the following conditions:
- Kuehne + Nagel staff continue to work under difficult circumstances. Some are still working from the property owners offices with laptops and some staff are working from the hallway of our main office to facilitate the connectivity available from the main office I.T. Network System. The main office will remain closed until repairs are complete due to flooding from Hurricane Maria.
- The telecommunications service provider was able to finalize the installation of the WiFi antennas and configuration of the system from the main office to the warehouse. Today we will verify that connectivity is working, that way we can have everyone working back in the warehouse so we can start with other work that the office needs to be operational again.
- Telephone system is still down. Please contact SJU BM / Gilda Collazo cellular at +1-787-648-7554 for any urgent matters.
- The Kuehne + Nagel staff continues to handle daily business transactions but continue to face some constraints with the airlines ground handlers and steamship lines local agents, but cargo is moving (imports and exports).
- Shipping lines are operating, but the terminals are totally saturated and all the processes have to be done manually and with messengers. This slows down every move considerably.
- The situation at the airport is still chaotic with the warehouses of the airlines being damaged and airlines request immediate pick up of import cargo. Kuehne + Nagel SJU nevertheless is getting shipments in and out. But, all the processes are manually and messengers have to be used for everything.
- US Customs is operational, but they are still working in only one of the three locations that they have in the metro area. The airport office is still closed as of today.
- Kuehne + Nagel SJU has started receiving regular cargo, not only the aid-relief cargo which was the case the last few weeks.
07.10.2017 | LAX & LBG Marine Terminal Operators to Increase Traffic Mitigation Fee
The West Coast MTO Agreement (WCMTOA) announced an increase in the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach, scheduled to take effect on August 1, 2017. As a result, Kuehne + Nagel will increase the TMF in quotes and billings by like amounts effective for cargo gating in or out of port terminals on or after August 1, 2017.
The TMF will be $72.09 per TEU (twenty-foot equivalent unit) or $144.18 per forty-foot container. The TMF is charged only on containers that are moved between 3:00 a.m. and 6:00 p.m. on weekdays. No TMF is due for containers moved during Off-Peak shifts (6:00 p.m. to 3:00 a.m. on weekdays or 8:00 a.m. to 5:00 p.m. on Saturdays). The TMF was introduced in 2005 to reduce daytime port congestion, and its proceeds help pay for the night and Saturday terminal shifts. For more information, click here >>.
Should you have additional questions, please contact your local Kuehne + Nagel branch office or representative.
06.06.2017 | Qatar Crisis impacts Air and Ocean transports
Several Middle Eastern countries severed diplomatic relations with Qatar and blocked flights and ocean transports to the country from its airports and seaports.
Our Kuehne + Nagel Airfreight Team is closely monitoring the situation and working with Qatar Airways and other carriers to make sure any cargo on hand in Doha (DOH) is scheduled as priority to be returned back to its U.S. origin. Kuehne + Nagel Airfreight gateways in Washington Dulles (IAD), Atlanta (ATL), Dallas (DAL), Chicago (CHI), Los Angeles (LAX), and Mexico (MEX) have established space and allocations with alternative carriers to destinations which cannot be serviced by Qatar Airways.
Several ocean carriers have stopped the acceptance of all bookings to and from Qatar effective immediately. Our Kuehne + Nagel Seafreight Team is also closely monitoring the situation, and any active bookings are under review and notifications will be sent as appropriate.
We will keep you posted as we receive further updates from Qatar Airways and other carriers. In the meantime, if you have any questions, please contact your local Kuehne + Nagel representative.