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CBP’s ACE Status Update Call now will be weekly

Friday, November 18th, 2016

Conferencecall

Per CSMS #16-000952

In response to the reduced volume of incoming questions on the ACE Status Update Call, beginning on Tuesday, November 22, the ACE Status Update Call will become a weekly call held on Tuesdays at 2:00PM EST. As CBP approaches the targeted deployment of post-release capabilities to ACE in January 2017, the ACE Business Office will reevaluate the needs of the trade community and increase the frequency of the calls, if necessary.

For those already included in the email invitation for the ACE Status Update Call, the invitation will be updated to reflect this schedule change. If you have not received the email invitation and would like to be added, please email AskACE@cbp.dhs.gov and request to be included.

Call-in information:  1-877-336-1828, call ID 6124214.

Hanjin to remove empty container from Long Beach this week!

Monday, November 7th, 2016
© 2016 Journal of Commerce

© 2016 Journal of Commerce

 

According to the Journal of Commerce, the backlog of empty Hanjin Shipping-leased containers in Southern California that has built up since the carrier declared bankruptcy on Aug. 31 will be reduced by two-thirds this week when Hanjin sends a vessel to the Port of Long Beach to pick up about 4,300 empties.  The removal of thousands of Hanjin containers from the Long Beach will help ease the operational pressures the empty containers have put on the supply chain in the Southern California region.

At the same time, the idled chassis upon which the containers were sitting will be released back into service.

Check out the full story.*

(*site registration may be required)

Make your Hanjin bankruptcy claims now!

Wednesday, October 19th, 2016

hanjin

Veteran trade attorney, Susan Kohn Ross, of Mitchell Silberberg & Knupp LLP, has posted some helpful guidance about contending with the Hanjin bankruptcy in this week’s NCBFAA e-briefing.

Here are some highlights:

  • There is a lot of press coverage about the Hanjin bankruptcy, but very little of it provides tangible facts for traders to rely on. One thing we know for sure is Hanjin filed a Chapter 15 bankruptcy in the U.S. What that means is the U.S. bankruptcy court will defer to the Korean bankruptcy court regarding how the case will proceed.
  • The U.S. court will limit its orders to cargo in the U.S. or touching the U.S. Most importantly right now, if you think you have a claim against Hanjin, you need to file that claim in the Korean bankruptcy proceeding, and you must do that between October 11 and 25, 2016. If you miss that claim deadline, you will be out of luck.
  • There are a handful of Korean lawyers representing the interests of cargo owners and other potential claimants in Korea and they should be contacted immediately. Referrals are available.

The complete article >> Hanjin Bankruptcy Update

C-TPAT: AQUA Lane for expedited unlading opens at LA/LB seaport

Thursday, September 29th, 2016

POL_Ariel

 

US Customs’ Los Angeles Field Operations Unit has announced the opening of the Advanced Qualified Unlading Approval (AQUA) Lane program at the Los Angeles/Long Beach seaport.

AQUA Lane provides an expedited vessel clearance process to sea carriers actively participating in the C-TPAT program, who meet the requisite criteria, that enables them to immediately unload cargo upon arrival in the US — prior to CBP meeting the vessel.  It allows CBP to lessen congestion at seaports, redirecting Customs’ resources towards high risk threats and away from low risk carriers.

Complete information, including FAQs are found in the LA/LB seaport’s September 28, 2016, Public Bulletin.  LA:LB Implementation of AQUA Lane at the LALB Seaport

 

Continued fallout from the Hanjin bankruptcy

Tuesday, September 27th, 2016

 

hanjin

Update from the Journal of Commerce:*

  • A US federal maritime commissioner said that shipping alliances may have to prove that they have emergency procedures in case a member files for bankruptcy, as Hanjin Shipping has done, adversely affecting its own customers and those of its shipping partners in its CYKHE alliance.
  • Since the collapse of Hanjin, shippers, truckers, terminals, fuel providers and chassis companies have expressed concern about the impact on their business, and many have filed papers in hearing in the US Bankruptcy Court matter
  • Their concerns are, for example:
    • How to obtain containers locked in Hanjin ships
    • How to return Hanjin containers when terminals won’t accept them
    • How to deal with Hanjin containers and chassis stored in yards and warehouses across the US (causing fears of another chassis shortage)

*(site registration may be required)

CBP’s formal announcement on ACE deadline move to Oct 29

Thursday, September 8th, 2016

O

 

In follow up to yesterday’s blog post, here is US Customs’ official announcement of the move of the October 1 ACE deadline to October 29:

U.S. Customs and Border Protection (CBP) has been assessing stakeholder readiness for the mandatory transition of post-release capabilities in ACE and has heard from key industry partners on the need for additional flexibility in this transition.  As a result, CBP is moving this date from October 1, 2016 to October 29, 2016 to allow additional time for our trade stakeholders to transition these capabilities to ACE.

This adjustment affects the mandatory filing of liquidation, drawback, reconciliation, duty deferral, collections, statements, and automated surety interface. 

All capabilities included in the October 29, 2016 transition that are planned for but not yet deployed to the Certification environment (CERT) will be operational in CERT, and all known prioritized issues will be resolved, no later than September 30, 2016.

While CBP has implemented the capability for most Partner Government Agency (PGA) data to be filed electronically in ACE, trade users may continue to file a combination of CBP electronic data and PGA paper forms where that is currently permitted. 

APHIS Lacey, NHTSA, FDA and as of 9/20/16, NMFS, data is required to be filed electronically in ACE. 

For PGA data that is not required to be filed electronically in ACE, filers may file using options currently specified as available for those PGAs.

CBP will continue to coordinate and communicate as required the conclusion of PGA pilots via public notices.

To ensure quick resolution of any issues that may arise following the October 29th deployment, CBP will stand up an operations center to support the transition to ACE for post-release capabilities for CBP users. Trade users will continue to contact their assigned Client Representative as the first line point of contact. Client Representatives will escalate trade issues as needed to the operations center.  Additional information on support during the transition will be published prior to the October 29th deployment.

The information in this notice will be posted on cbp.gov by September 8.

ACE: CBP moves Oct 1 deadlines to Oct 29

Wednesday, September 7th, 2016

ace logo 2016

 

 

 

 

 

 

From: KORPUSIK, FRANK J (CTR) [mailto:FRANK.J.KORPUSIK@cbp.dhs.gov]
Sent: Wednesday, September 7, 2016 11:06 AM

Trade Support Network (TLC) Members: 

U.S. Customs and Border Protection (CBP) has been assessing stakeholder readiness for the mandatory transition of post-release capabilities in ACE and has heard from key industry partners on the need for additional flexibility in this transition.  As a result, CBP is moving this date from October 1, 2016 to October 29, 2016 to allow additional time for our trade stakeholders to transition these capabilities to ACE.

This adjustment affects the mandatory filing of liquidation, drawback, reconciliation, duty deferral, collections, statements, and automated surety interface.

All capabilities included in the October 29, 2016 transition that are planned for but not yet deployed to the Certification environment (CERT) will be operational in CERT, and all known prioritized issues will be resolved, no later than September 30, 2016.

While CBP has implemented the capability for most Partner Government Agency (PGA) data to be filed electronically in ACE, trade users may continue to file a combination of CBP electronic data and PGA paper forms where that is currently permitted.

  • APHIS Lacey, NHTSA, FDA and as of 9/20/16, NMFS, data is required to be filed electronically in ACE.
  • For PGA data that is not required to be filed electronically in ACE, filers may file using options currently specified as available for those PGAs.
  • CBP will continue to coordinate and communicate as required the conclusion of PGA pilots via public notices.

To ensure quick resolution of any issues that may arise following the October 29th deployment, CBP will stand up an operations center to support the transition to ACE for post-release capabilities for CBP users. Trade users will continue to contact their assigned Client Representative as the first line point of contact. Client Representatives will escalate trade issues as needed to the operations center.  Additional information on support during the transition will be published prior to the October 29th deployment.

The information in this notice will be posted on CBP.gov/ACE by September 8.

 

Regards

Frank Korpusik

Contractor, CBP ACE Business Office

Office: 571-468-5477

Cell: 703-624-3915

Frank.j.korpusik@cbp.gov

NCBFAA: Possible impacts of Hanjin’s bankruptcy on current shipments

Friday, September 2nd, 2016
© 2016 Ingrid Taylar

© 2016 Ingrid Taylar

Update from Edward D. Greenberg, National Customs Brokers and Forwarders Association of America (NCBFAA) Transportation Counsel:

As you are probably aware, Hanjin filed for bankruptcy protection in Korea on Wednesday August 31st. The filing came just a day after the company creditors discontinued financial assistance of more than USD $896 million to keep the company operating. The Korean bankruptcy court will determine whether Hanjin should be liquidated or given a chance to restructure.

The press is reporting that one Hanjin vessel, the Hanjin Rome, was seized by a creditor in Singapore on Monday. The press is also reporting that a number of ports, including ports in China (Shanghai, Xiamen), Spain (Valencia) and the United States (Savannah), have blocked access to Hanjin ships due to concerns Hanjin would not be able to pay port fees. The bankruptcy filing and the actions of the ports and at least one creditor raise a number of questions. One issue is whether the court will issue a stay prohibiting Hanjin’s creditors from seizing assets (e.g., vessels) to satisfy their claims. It is likely that the Korean court will do so given Hanjin’s size and importance. A second issue, however, is whether any such stay would bind foreign creditors in ports where Hanjin vessels may call. Because it is doubtful that foreign creditors with no operations in Korea will pay much attention to an order of a Korean court, Hanjin likely would have to seek an injunction blocking vessel seizures in all countries where Hanjin ships are located. This would be a pretty large undertaking. And, while it is difficult to predict with certainty whether courts in various countries will issue injunctions blocking the seizure of Hanjin vessels, it is certain that the cargo on any vessel that is denied access to a port or seized will be delayed and will likely incur extra costs.

Any supplier of goods to Hanjin’s vessels has a lien on the vessel to secure payment of what they are owed so there are potentially a lot of foreign creditors that exist. And, once one of the vessels is seized, it is likely that other foreign creditors would rush to do the same thing to protect their interests. This is when events could take on a life of their own and spin out of control. There is not much that can be done about shipments that are already on Hanjin vessels. We have heard from an inside source at Hanjin that it intends to “protect” such current shipments, which probably means at the least that it will endeavor to complete voyages in progress and deliver the goods (to the extent that the vessel is allowed to enter the port.)

If a vessel is arrested, and Hanjin does not – or cannot – put up a bond to obtain its release, it is probable some third party will be appointed to arrange for disposition of the goods. The goods themselves will not be subject to a creditor’s lien; however, freight charges owed on collect shipments will probably have to be paid because they will be considered Hanjin’s assets. It is also probable that shippers may have to make their own arrangements for on-carriage of their containers. For containers that have been shipped with other carriers and loaded on Hanjin vessels pursuant to vessel sharing arrangements, the issue will be how much responsibility those carriers will take for making the arrangements for on-carriage in the event the Hanjin vessel is seized. As you can see, there are a variety of possible outcomes here. Which of the possible outcomes actually occur will depend upon how this situation unfolds and what actions third parties take.

We understand, again from the trade press, that Hanjin either already has or will be declaring force majeure with respect to its contractual obligations to provide transportation services. If so, it is possible – if not likely – that Hanjin will exercise the provisions of the “Hindrance” clause in its bill of lading to declare that the transportation services have been terminated, that it is entitled to full freight, and that the merchant now needs to make any necessary arrangements to complete the transportation services to destination. Consequently, whether or not any of its vessels are seized, it may well be that arrangements will need to be made to make sure that goods in Hanjin’s possession or control are released and then moved to final destination.

We recommend that you not pay Hanjin for the transportation of cargo until goods are actually delivered into your possession and control. We also recommend that you send notices out to your customers advising them of the situation. It might be helpful if your notice to customers includes reference to Hanjin’s exercise of force majeure and its Hindrance clause and that any additional costs required to get their cargo to destination will necessarily be passed along to the shipper pursuant to the provision of your company’s bill of lading and its Hindrance clause.

++++++++++++++++++++++++++++++++++++

See also:

MSK legal update:  Hanjin Shipping Sinks in Korea

Seattle Times’ article, Bankruptcy of Hanjin, key Port of Seattle customer, worries retailers

 

Mercedes-Benz 3D prints spare parts

Monday, July 18th, 2016

We’ve posted previously about how 3D printing will affect supply chainsor not.  Here’s an interesting quote on this topic m-bfrom gizmag.com, discussing how Mercedes-Benz uses 3D printing for on-demand spare parts.  It’s amazing how 3D printing is becoming so deeply engrained in manufacturing… with no doubt an effect on shipping.

The process is especially useful when it comes to low-volume parts, or parts no longer being series produced.  Rather than forcing production facilities to maintain old tooling, 3D printing means manufacturers are able to order and create parts from old catalogs or model lines.  Because parts can be printing instantly, Mercedes-Benz is also able [to] avoid wasting storeroom space.

The full article is here.

Expanded Panama Canal opens!

Monday, June 27th, 2016

panamacanalThe newly expanded Panama Canal opened to much fanfare this past weekend:

  • The first ship that made it through the locks and completed the 50-mile journey from Atlantic to Pacific was the Chinese-owned Cosco Shipping Panama
  • 85 percent of the 166 reserved crossings scheduled for the next three months are for container ships. Container cargo accounts for nearly 50 percent of the canal’s overall income
  • However, factors that can negatively affect the canal’s traffic and include global shipping due to the drop in oil prices, an economic slowdown in China, which is the canal’s second-largest customer, and other factors that have hit the waterway’s traffic and income
  • While canal authorities anticipate increasing commerce between Asia and ports on the U.S. East Coast, it’s not at all settled that all those ports are ready to handle the huge New Panamex-class cargo ships