SHIPPING INDUSTRY TAKES A GLASS-HALF-FULL APPROACH

THE SHIPPING INDUSTRY KEEPS TANKING

Prominent companies are avoiding investors conferences. And with a glut of vessels and scant demand, carriers talk more about scrapping ships than sailing then.

The industry’s saving grace may lie partly in its ability to diversify. Companies specialized in a vast array of sectors,some of which respond less to a Eurozone crisis or Middle East sanctions. Crude oil and dry bulk shipments  make up the market powerhouses, but smaller sectors remain viable because they serve niche functions.

Ships that carry container goods, for example, have had more luck in recent years than oil tankers. Altered driving habits coupled with the rise of more fuel-efficient cars have reduced the need for oil shipments to the United States.Container shipping companies have taken a hit from decreased consumption, but shoppers still purchase, only now they’re buying from Target rather than Nordstrom.

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CANADIAN PORTS WADE INTO POLITICAL WATERS

The Federal Maritime Commission is claiming America’s neighbor to the north snags business from the west coast ports. Lawmakers have seized on its contents, which fit confortably into the election year narrative and outdated infrastructure.

Last September, two Washington senators and a handful of west coast representatives asked the commissioners to analyze the impact of shippers stopping in Canada and then sending their goods by rail to the United States. Their primary concern involved a Harbor Maintenance Tax, which the goverment charges shippers to reimburse dredging cost. The report placed the average fee at $109 per 40′ container. Canadian ports do not have a tax, instead relying on a commercially based user fee.

West coast ports have voiced repeated frustration about the tax, since their deep harbors mean they raely benefit from the dredging money it’s supposed to generate.  Revenue from the tax goes into a trust fund intended for deepening projects. Ports accross the country have taken issue with their inability to access the money.

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NOTIFICATION FROM FDA

FDA DELAYS START OF FSMA ,FOOD FACILITY RE-REGISTRATION

 

Domestic and foreign food facilities are advised to take this extra time to select an appropriate US Agent. Brokers are advised to seek out partners for and alternatives to taking on this increased liability.

 

The Food & Drug Administration (FDA) announced last week that the mandatory re-registration period for registered food facilities was temporarily delayed. Sources at the FDA indicate that the re-registration process will likely be available in mid-October.

 

Under Food Safety Modernization Act (FSMA) §102, domestic and foreign food facilities registered with the FDA are required to renew their registration every two years, beginning in 2012. The initial renewal period was scheduled to begin on Monday October 1, and run through December 31, 2012. However, late on Friday, September 28, the FDA announced that the renewal period was delayed. Although the FDA gave no specific reason for the temporary deferment, it is believed to be the result of technical issues with the updated database.

 

Foreign food facilities affected by the new registration renewal requirements are reminded that the FSMA also imposes new burdens and potential liabilities on U.S. Agents. One of these liabilities stems from the re-inspection fees permissible under FSMA §107, which allows the FDA to hold the U.S. Agent financially liable for the payment of fees incurred in the re-inspection of a food facility, as well as associated travel costs. The FDA expects to charge $289/hour for time spent in foreign facility re-inspections — resulting in the potential for invoices to U.S. Agents to range anywhere from $3,000 to more than $75,000 per re-inspection. As a result of this increase in potential exposure, many who have served as U.S. Agent in the past are no longer offering this service, leaving foreign food facilities to seek out new U.S. Agents.

 

This brief renewal registration delay provides an opportunity for all foreign facilities to consider who to designate as U.S. Agent. U.S. Agents should also use these two weeks to evaluate the liabilities imposed under the new regulatory regime imposed by FSMA.  

We will send information regarding the new opening date for re-registration as it becomes available from the FDA.

 

Information for New Registrants:

 

Even though re- registration is delayed, the FDA is currently accepting initial registrations for foreign and domestic facilities that manufacture, store or pack food, and who have not previously registered with the FDA.

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NOTIFICATION FROM MAERSK GRI EFFECTIVE NOVEMBER 2012

Malaysia – New Import Tariff Model

 We are pleased to announce that with effect from 15 October 2012, we will be offering combined free time for import containers. This will offer our customers flexibility in cargo transportation and improve operation efficiencies.

Our free time charges and free time will be computed for all Malaysia import locations as below in Malaysian Ringgit:

                                                                          Free Time ( calender ) 

                                 DAY 1-7      DAY 8-10      DAY 11 – 14     DAY 15 and Above

20′ Dry                           FREE                         45                       70                                    100

40′ Dry                           FREE                         75                       100                                   140

45′ High Cube            FREE                        90                        160                                  240

 

  DAY 1-4          DAY 5-7       DAY 8-11           DAY 12 and Above

20′ Reefer,                FREE                   160                      190                              210

opentop & flatrack

40′ Reefer,                FREE                    260                      310                              360

Opentop & Flatrack

 

The tariff will be applicable to all Malaysia imports of containers discharged on/after 15 of october 2012.

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Collective Bargaining Agreement Extension

Statement by FMCS Director George H. Cohen on United States Maritime Alliance and International Longshoremen’s Association Labor Negotiations.

WASHINGTON, D.C. — I am pleased to announce that at the close of today’s productive negotiation session, in which progress was made on several important subjects, the parties have agreed to extend the collective bargaining agreement due to expire on September 30, 2012 for a ninety (90) day period, i.e. through December 29, 2012. In taking this significant step, the parties emphasized that they are doing so “for the good of the country” to avoid any interruption in interstate commerce.

This extension will provide the parties an opportunity to focus on the outstanding core issues in a deliberate manner apart from the pressure of an immediate deadline. The negotiations on the Master Agreement will be conducted during the same time frame as negotiations for local agreements. The negotiations will continue under the auspices of the FMCS. Due to the sensitive nature of these high profile negotiations, we will have no further comment on the schedule for the negotiations, their location, or the substance of what takes place during those negotiations.

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