Please be advised that all content is now being published on the new GHY website.
This change enables us to streamline our process and take advantage of the new site’s integrated blogging platform. We hope you will join us at the new home of Tradelines to keep current with new developments in the world of customs, logistics and international trade.
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(Will Waters – Lloyd’s Loading List)
Global air freight demand measured in freight tonne kilometers (FTK) grew 4.2% in November 2014 compared to November 2013, and expanded by a “healthy” 0.8% over the previous month, according to the latest data from the International Air Transport Association (IATA).
Capacity grew by 3.3% compared to the previous November, indicating a slight improvement in the global air cargo load factors of IATA airlines.
The most significant air freight volume growth was recorded by carriers in the Asia-Pacific and Middle East regions, at 5.9% and 12.9%, respectively, with carriers in these regions capturing the vast majority (93%)of the global increase in FTKs. Carriers in Asia-Pacific, with a market share of 39.7%, accounted for 55% of the total year-on-year growth, while airlines in the Middle East region, with a market share of 13.3%, contributed 38% of the global growth. Read more here.
Reflecting a notable decrease in the value of imports, the Commerce Department released a report on Wednesday showing that the U.S. trade deficit narrowed by more than expected in the month of November.
The Commerce Department said the trade deficit narrowed to $39.0 billion in November from a revised $42.2 billion in October. The trade deficit in November reflected the smallest since December of 2013.
Economists had expected the deficit to shrink to $41.5 billion from the $43.4 billion originally reported for the previous month. Read more here.
(Andy Blatchford – Canadian Press)
Canadian exporters stung by Russia’s currency crisis and its retaliatory sanctions against the West wonder what 2015 will hold for a market filled with promise less than 12 months ago.
Companies from farm-equipment manufacturers to pork producers spent much of 2014 adjusting to the economic instability in Russia, a country that bought $563 million worth of Canada’s agricultural exports in 2012.
For some firms, the first half of 2014 had the hallmark of a banner year – and then sales evaporated. Read more here.
More than 80 small trucking companies say they’re on the verge of being put out of business by new reforms to the licensing fees at Port Metro Vancouver.
Instead of paying a $300 licensing fee to the port, truck operators now have to pay an annual company fee that starts at $35,000 for up to 15 trucks. That means some owners who own only one or two trucks may have to merge with others.
“We can’t afford this,” said Chandra Nand, who has been driving a truck for over 30 years. Read more here.
CBP is advising the trade that there are no longer requirements to email a copy of the Single Transaction Bond (STB) to ISF_Bond@cbp.dhs.gov as long as the STB is filed via eBond. Please note no bonding requirements were changed only the fact that a copy of the bond no longer needs to be emailed to CBP for those STBs filed through eBond. If you have any questions regarding this message please contact your assigned Client Representative.
(Lloyd’s Loading List)
Union leaders representing U.S. west coast dockworkers have agreed to mediation in an effort to negotiate a new contract with employers.
The Federal Mediation and Conciliation Service confirmed that a joint request for its services had been received from the International Longshore and Warehouse Union and the Pacific Maritime Association.
“We are prepared and ready to render prompt assistance,” the Washington agency said. Read more here.
(Jim Bronskill – CBC News)
Better oversight, training, and detection technology are needed to keep illicit drugs and other contraband from slipping into the country in air cargo, an internal audit says.
The Canada Border Services Agency audit says the findings are significant because commercial air cargo accounts for about one-quarter of all arriving shipments.
The audit team visited the high-volume airports in Vancouver, Toronto and Montreal as well as three unidentified smaller ones in their study of the agency’s air cargo examination program. Regional border services officers scrutinize incoming goods, decide whether to allow them entry and take action if they discover violations. Read more here.
(Greg Quinn – Globe & Mail)
Canada’s November merchandise trade deficit widened as exports fell the most since January, 2012, on falling crude oil prices.
The deficit of $644-million followed an October reading that was revised to a $327-million deficit from a $99-million surplus, Statistics Canada said Wednesday in Ottawa. Economists surveyed by Bloomberg forecast a $200-million November shortfall, based on the median of 14 forecasts. The widest deficit prediction was $400-million. Read more here.
Global emerging markets grew at the fastest pace in three months in December, a survey by Markit Economics and HSBC bank showed Wednesday.
The HSBC Emerging Markets Index, or EMI, increased to 51.7 in December from 51.2 in November, signalling moderate growth. This marked the highest score in three months.
A reading above 50 indicates growth in output.
Manufacturers and service providers in emerging markets registered subdued growth, though the service sector grew at the fastest pace in three months. Read more here.
The euro hit a nine-year trough and bond yields in several euro zone countries reached record lows on Wednesday, as tumbling oil prices tipped inflation into negative territory for the first time since 2009, raising the prospect of outright deflation.
Euro zone annual inflation in December was -0.2%, lower than expected and far below the European Central Bank’s medium-term target of just under 2%.
The fall was driven by tumbling energy prices. Brent crude oil futures fell below $50 a barrel on Wednesday for the first time in almost six years, marking a startling decline of around 40% in just two months. Read more here.
Revision to the Export Administration Regulations: Controls on Electronic Commodities; Exports and Re-exports to Hong Kong
(Bureau of Industry and Security)
This rule amends the Export Administration Regulations (EAR) to expand controls for national security reasons and responds to public comments solicited by a Bureau of Industry and Security (BIS) notice of inquiry regarding the proper export control classification of certain electronic commodities and a type of radar. Specifically, in this rule, BIS amends the EAR to expand national security controls on certain electronic commodities controlled on the Commerce Control List (CCL) and to limit license exceptions for these items. This rule also expands license requirements for exports and reexports to Hong Kong of items controlled for national security reasons. The revisions are outlined here.
CBP published a Federal Register Notice today announcing modifications and clarifications to the National Customs Automation Program eBond test, which was deployed on January 3, 2015 (79 FR 70881). The modifications and clarifications to CBP’s eBond test include the method by which continuous bonds executed prior to or outside of the eBond test may be converted to eBonds by the surety and principal. Specific information can be found here.
At the beginning of January it seems almost obligatory for everyone to engage in a little prognostication about what might be anticipated in the year ahead. The Conference Board of Canada is no exception in this regard, and last week published an article in the Ottawa Citizen setting out what the Board’s Global Commerce Centre has identified as five emerging trade trends – and how Canadian businesses can take advantage of them. Click here to read more.
As last year drew to a close, International Trade Minister Ed Fast took the opportunity to review some of the Harper government’s key accomplishments in the advancement of its Global Markets Action Plan (GMAP) and delivering “on its commitment to open new markets, protect Canadian investment and support Canadian companies, particularly small and medium-sized enterprises (SMEs), as they seek to boost their exports.” Click here to read more.
Although Prime Minister Shinzo Abe wants to clinch large-scale free trade agreements with a range of countries to help spur economic growth, negotiations have stalled over the extent of trade liberalization those countries expect.
Abe hopes to leverage anticipated progress in talks on the Trans-Pacific Partnership free trade bloc, where a deal seems possible this spring, to help resolve such deadlocks.
Large-scale FTA negotiations accelerated in 2013, when Japan joined the TPP talks. The group of 12 countries accounts for some 40 percent of global nominal gross domestic product. Read more here.
(Korea Joongang Daily)
Five countries that export rice to Korea have submitted complaints to the World Trade Organization (WTO) that the Korean government’s 513 percent tariff, which took effect Jan. 1, is too high.
The Ministry of Agriculture, Food and Rural Affairs said Tuesday that the United States, China, Australia, Thailand and Vietnam submitted objections to the WTO at the end of 2014 because the tax on rice is excessively high compared to other countries.
The nations said that the tariff calculations done by the Korean government using one of two methods allowed by the WTO may be inaccurate. Read more here.
(Harriet Line – The Telegraph)
As the German agriculture minister warns that laws protecting regional foods may be at risk under a transatlantic trade agreement, we look at British specialties current being produced across the Atlantic.
Myers of Keswick claim to make the best Cumberland Sausage west of Allonby, but the expatriate shop in Manhattan, could soon be at loggerheads with the real deal. Read more here.
McDermott International, Inc. has received authorization from the Central Administration of Customs in Mexico to operate its Altamira fabrication facility near Tampico, Mexico, as a free trade zone. [...]
This improved construction environment supports the execution of larger and more complex projects from within Mexico. It enables McDermott to better serve its clients through a top-tier fabrication facility, with a highly skilled in-country workforce, and proximity to good transportation infrastructure that supports the further development of the local economy.
With the Mexican energy reform potentially opening up the Mexican market, PEMEX will require expertise from international energy majors for field development, as well as engineering and construction contractors such as McDermott. Read more here.
(David Pugliese – Ottawa Citizen)
Canadian exporters stung by Russia’s currency crisis and its retaliatory sanctions against the West wonder what 2015 will hold for a market filled with promise less than 12 months ago, writes Andy Blatchford of the Canadian Press. [...]
Companies from farm-equipment manufacturers to pork producers spent much of 2014 adjusting to the economic instability in Russia, a country that bought $563-million worth of Canada’s agricultural exports in 2012. Read more here.