Import volumes remain very strong and this trend is expected to continue through this coming February’s Chinese New Year. The situation with capacity and equipment is still quite serious and the lack of equipment is causing cancellations and rolled bookings at many origin ports. There are over 20 container vessels currently waiting to berth in Southern California. In developing news, the BNSF is reporting rail car shortages which could quickly develop into lengthy rail delays for inland destinations.

CBP issued guidance earlier this year indicating importers must file protests on certain entries to preserve their right to exclusion refunds. These protests would apply in situations where exclusions were granted after an entry containing eligible products/HTS codes had already liquidated. The DOJ (Department of Justice) recently reaffirmed this guidance. It is extremely important for importers to work with their Customs Broker or Trade Lawyer to ensure they have taken all steps necessary while the protest window is open, as any recourse after it closes will be almost impossible to obtain.

Improved market conditions appear to be benefiting ocean carriers trying to recover from earlier setbacks from earlier COVID-19 shutdowns. However, they are facing difficulty positioning equipment to the right locations to meet the dramatic swings in demand. Ocean carriers active in most trades out of India are increasingly reporting “stockouts” for empty containers amid slowing import flow and heightened export demand. As a result, shippers are beginning to see more emergency surcharges on top of the already high spot rates on key routings especially for US-bound cargo.