Insights

The Generalized System of Preferences (GSP), which allowed for duty free treatment of goods from specific countries, expired at the end of 2020. This is not the first lapse. In the past (after the agreement is renewed), Post Summary Corrections could be filed on entries in order to obtain a duty refund for those goods which entered the US during the gap period. Importers who utilize GSP should continue to claim it on their US Customs entries to ensure they have good records, should refunds be available again.

We may have placed our 2021 calendars on the wall, however the 2020 hangover remains as capacity, equipment, port congestion and extremely high freight rates continue to carry over into the new year. The majority of lanes are booked solid right through January and any new bookings with departure dates prior to Chinese New Year are requiring premium capacity and equipment charges. Extra-loaders added in December have provided much needed capacity in the market.

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.