GHY Tradelines

(Journal of Commerce Online – Peter T. Leach)

China could lose advantage over U.S. in five years if freight rates rise 5% 

The cost advantage of manufacturing products in low-cost manufacturing locations in Asia will erode in comparison to the U.S. and Mexico in 2012, according to a new report by global consultancy AlixPartners.

China, which is experiencing negative pressure as an exporter because of wage inflation, exchange-rate pressures and higher freight rates, could lose its cost advantage vis-à-vis U.S. production in four years if freight rates rise at 5 percent annually, according to the 2011 U.S. Manufacturing-Outsourcing Cost Index. Read more here.
 

(World Trade Interactive)

The State Department’s Directorate of Defense Trade Controls has posted to its Web site a report outlining the fiscal year 2010 performance of its “Blue Lantern” end-use monitoring program for defense exports. The report reveals that in FY 2010 about 21% of all Blue Lantern end-use checks were unfavorable (compared to 15% in FY 2009), indicating that the exported items are being used for unauthorized purposes.

The Blue Lantern program monitors the end-use of commercially exported defense articles and defense services subject to licensing or other authorizations under section 38 of the Arms Export Control Act and the International Traffic in Arms Regulations. Blue Lantern end-use monitoring entails pre-license, post-license or post-shipment checks undertaken to verify the bona fides of proposed foreign consignees and end-users, to confirm the legitimacy of proposed transactions and to provide reasonable assurance that (a) the recipient is complying with U.S. government requirements with respect to use, transfers and security of defense articles and defense services and (b) such articles and services are being used for the purposes for which they are provided. Read more here.
 

(San Diego Reader – Matt Potter)

San Diego’s Alan Bersin, who quit his post as Commissioner of Customs and Border Protection just before his so-called recess appointment ran out at the end of the year, has been given a new job in the Obama Administration.

At a changing of the guard ceremony in Washington Friday during which ex-Border Patrol chief David Aguilar was sworn in as Bersin’s CBP successor, Homeland Security Secretary Janet Napolitano revealed the new position.

“Today, I’m pleased to announce that President Obama has appointed Commissioner Bersin to serve a new role within DHS – that of Assistant Secretary of International Affairs. DHS could not succeed in its mission without strong international partnerships and engagement,” Read more here.
 

(AllGov.com)

U.S. Customs and Border Protection (CBP), which is the largest uniformed, federal law enforcement agency in the country, has a new leader.

David V. Aguilar, who has worked on border enforcement for more than thirty-three years, has been named CBP Acting Commissioner in the wake of the refusal of Senate Republicans to hold a hearing on President Obama’s nomination of Alan Bersin to the post. Effective January 1, 2012, Aguilar will be in charge of more than 20,000 uniformed agents. Read more here.
 

(CTV News)

The Quebec Truckers Association is endorsing traffic surcharges that some delivery companies have started charging in order to compensate for increased costs incurred through traffic congestion.

Some companies are already charging a traffic surcharge, according to the Quebec Truckers Association Marc Cadieux who says that the delivery people cannot absorb the costs of the traffic jams that have been plaguing the Montreal area.  The jams cost delivery companies extra fuel and man hours, he explained. Read more here.