US Customs published the following update today in response to queries from importers on how to deal with containers arriving on Hanjin Ships and Bill of Ladings
Scenario 1:
Vessel Diverted to Foreign Port and Discharged: A Hanjin vessel does not arrive
in the intended U.S. port and diverts to a foreign port to discharge freight.
• The manifest and Importer Security Filing (ISF) must be deleted.
• All bills of lading need to be deleted (not cancelled)
• Entries and entry summaries need to be cancelled.
• For cargo subsequently entering the U.S. through land border or other means, a new entry
should be filed at the appropriate port of entry.
• For shipments subject to Food and Drug Administration (FDA) requirements, filers must
request deletion and a new Bio-Terrorism Act (STA) prior notice submission should be
transmitted along with the new entry if the cargo subsequently enters the U.S.
Scenario 1a:
Hanjin Vessel Diverted to Foreign Port Not Discharged: A vessel diverted
to a foreign port of entry is not discharged but cargo is transferred to an alternative
conveyance (i.e. barge) for arrival and discharge at the original intended U.S. port of entry.
• This should be used only in limited situations.
• No change is needed to the manifest, bill of lading, ISF, or pre-filed entries.
• A new FDA prior notice is not required.
• The arrival date will reflect the date the conveyance arrives at the intended U.S. port to be
offloaded.
Scenario 2:
Hanjin Vessel Diverted to Another U.S. Port and Discharged: This includes any
scenario where shipments manifested for one U.S. port are discharged in a port other than the
manifested port.
• Manifest and bill information should be updated to reflect the port code where the freight
will actually be discharged.
• No change is needed to the ISF. However, ISF filers should monitor the ISF disposition
codes to ensure that any changes to the manifest and bill information did not cause the
original bill match to drop.
• Change pre-filed entries to reflect the actual port code of discharge. The filer may opt for
any of the following:
• Using ACE Cargo Release corrections capability, to change pre-filed entries to
reflect the actual port code of discharge. As long as the shipment is not held or
arrived/released, this process should be fully automated with minimal CBP
intervention.
• Initiate an electronic in-bond movement or use a 7512 to allow for inter-modal
transport of the goods to the original intended U.S. port for processing by
CBP.
• Entries may be cancelled and refiled for the new port of entry.
• A new FDA prior notice is not required; filers can retransmit a corrected/updated prior
notice.
In all cases under this scenario, manifest and bill information should be updated, but no
change is needed to the ISF. Please note that without updating the bills of lading, the
shipments cannot be arrived at the first port of arrival which will prevent entries from
releasing. Changes in entry process with ACE Cargo Release has linked the entry release
to the manifest arrival to increase the number of fully paperless transactions. Without
this, paper entries and other documents will be needed for shipments not requiring
examination or further processing with ACE. In addition, since shipments being held for
examination or document review will need to be amended in any scenario, this process
provides a standard process with most compliant transactions requiring minimal CBP
intervention.
Scenario 2a:
Hanjin Vessel Diverted to Another U.S. Port Not Discharged: When a vessel
is diverted to another U.S. port of entry but not discharged, no change is needed to the bill of
lading or entries. The arrival date for the vessel will reflect the date the ship returns to the
intended U.S. port to be offloaded.
Scenario 3:
Hanjin Vessel Rests at Anchor and Not Diverted: A vessel arrives in port
but due to work stoppage rests at anchor until freight can be discharged.
The carrier must continue to provide advance notification to local CBP ports of their
pending arrival (CBP Form 3171).
When a vessel arrives at a U.S. port (within CBP territory) and comes to rest whether
at anchor, dock, or harbor, carriers must notify local CBP vessel processing
personnel.
After initial arrival, a change to the vessel’s arrival status should be considered
(vessel unarrived) to avoid automated cargo release and general order issues.
The carrier and vessel agents should maintain close communication with local CBP
port vessel processing office to share information, updates, instructions, and portspecific
guidance.
CBP will work with the carrier on a case-by-case basis so the actual arrival date and
time at the first U.S. port closely reflects the actual date/time the vessel begins to
unlade the cargo.
CBP will also take into consideration situations where cargo has been unladen but
due to work stoppage cannot be moved from the dock.
Scenario 4:
In-bond (IT and T&E) cargo already in the U.S. moving under Hanjin’s bond
to U.S. port for entry or export.
This cargo must be arrived to process the entry and allow release. Customs brokers and others
using ABI functions QP/WP can arrive and/or export any in-bond at destination. As an
alternative, the in-bond document (or information as appropriate) can be delivered to CBP and
in-bond destination in order to be manually arrived/exported.
Maersk Line announces new Transpacific service
07 September 2016
Maersk Line is introducing a new service between Asia and the United States West Coast.
Copenhagen, 7 September 2016 – In response to the changing market situation on the Transpacific trade, Maersk Line is introducing a new service between Asia and the United States West Coast. The TP1 service will complement Maersk Line’s existing product portfolio on the Transpacific. The first sailing is scheduled for 15 September.
“We are responding to increased demand in the Transpacific. With supply chains disrupted, many customers are approaching us for transport solutions for their cargo. The TP1 service is a stable, long term solution to meet our customers’ needs,” says Klaus Rud Sejling, Head of Maersk Line’s East-West Network.
The TP1 service will be calling Yantian, Shanghai, Busan and Los Angeles/Long Beach. It will have six (6) vessels with a capacity of 4000 TEU per week deployed. The TP1 service will be part of the 2M network.
According to a Journal of Commerce article today, the International Longshoremen’s Association (ILA) has put a hold on early contract extension discussions with the United States Maritime Alliance (USMX). The parties had started initial discussions late last year on the potential for a contract extension. According to a statement from ILA Executive Vice President Dennis Daggett, all of the issues with the current contract must be resolved before the ILA will begin discussions on a new contract. The current East Coast/Gulf Coast contract expires September 2018.
Following a letter authored by over 100 trade associations including Gemini Shippers Group, the International Longshore and Warehouse Union’s (ILWU) Caucus has agreed to begin discussions with Pacific Maritime Association (PMA) on the concept of a contract extension. The current West Coast contract expires July 2019.
Gemini Shippers Group, one of the largest shipper’s associations operating in the United States, today launched their container analytics dashboard. The dashboard, which is free for member companies to use, provides users with a host of easy to use metrics, KPI and reporting features to allow shippers to view all of their shipments across all of their Gemini carriers from one location. The interactive dashboard allows users a host of drill down and export capabilities to help facilitate detailed learning and data sharing. Commenting on the launch, Ken O’Brien, COO of Gemini Shippers Group said, “We continue to build on the capabilities of our web based member portal to bring new functionality to our member companies. We believe these value added services will continue to differentiate Gemini as the leading shipper’s association in North America and continue to provide our members with a competitive advantage as they move along the path of digitization of their supply chains”.
About Gemini Shippers
Gemini Shippers Group, one of the largest shippers associations in the United States, has been serving its members for nearly 100 years. The group includes Gemini Shippers Association and the Fashion Accessories Shippers Association (FASA). Gemini offers member companies access to competitive global ocean freight contracts, long term rates and space allocations by signing global contracts with a wide variety of top tier ocean carriers. For more information on Gemini Shippers Group please contact us at:info@geminishippers.com or (212) 947-3424 or visit our website at www.geminishippers.com
This week, Gemini Shippers Group and our partners at Allport Cargo Services USA, attended the GT Nexus Bridges Conference in New York City. The conference brings together supply chain executives from the world’s largest companies across retail, manufacturing, logistics, and technology to discuss emerging supply chain trends. The theme of the digitization of the supply chain, and how companies can embark on a digital supply chain strategy emerged as a key driver for many supply chain leaders at this year’s event.
Many acknowledge that there is benefit to transforming supply chains to be more digital, but it is clear that many companies are early in this transformation process. Based on a survey of supply chain leaders, seventy-five percent of companies stated they believed that a digital transformation was important and seventy percent stated that they had begun this process. At the same time, a significant amount of work is still required to achieve this as thirty-three present of those in the survey stated they were dissatisfied with their progress thus far. Survey results tallied that forty-eight percent of transactions were still being handled manually via phone, fax and email. Results also revealed that only fifteen percent of the overall supply chain data is accessible in a unified format and location.
With so much supply chain data available, how do shippers make sense of it all and begin to use technology as an enabler in their supply chain while at the same time continue to manage the day to day needs of moving product?
The theme of the creation of a bimodal supply chain emerged as a possible avenue shippers consider as they move down the path of digitization. Coined by the Gartner Group, a Bimodal strategy is the practice of managing two separate but coherent styles of work: one focused on predictability; the other on exploration. Shippers moving towards a digital supply chain using a Bimodal strategy can allow for both the continuous improvement and operational excellence requirements of running the business to be combined with the future state of exploration of new technologies.
The first part of the strategy’s focus involves using the company’s existing data and infrastructure to further improve operational performance and efficiency. In our work with shippers at Gemini Shippers Group, we think about the use of shippers’ rate and operational data to improve pricing, carrier choices, visibility and analytics. Using companies existing data assets, a company can move toward a more digital supply chain while gaining near term wins in performance.
The second part of the Bimodal strategy involves using technology in more experimental ways. Shippers today can think of these as innovative changes that will significantly move the needle providing competitive advantage and differentiation from their competitors. Shippers today should be thinking about predictive analytics, machine learning, big data technologies and the Internet of Things as areas of exploratory technology that can aid their supply chain transformation.
To move your supply chain forward it is key to have the right partners as well as a Bimodal plan to deal with both short term operational and long term exploratory goals. As our partner Tom Beckett, Vice President of Allport Cargo Services, said in one of the session, “It is important not to try to leapfrog technology inside the supply chain faster than the shipper’s team can socialize it”. Movement towards a digital supply chain is imperative to firms looking to the future but it needs to be driven by the business unit, supported by the technology team, and encompass a holistic view of the entire supply chain and the associated processes required to move product from manufacturing to market.
By Sara Mayes
CEO/President
On September 4-5 , 2016 world leaders will come together in Hangzhou China to attend the G20 Summit. This week Chinese authorities have announced that they will mandate the closure of as many as 600 Shanghai area textile factories starting in August to prepare for the G20 Summit.
The Closure of these factories is being planned to reduce the chronic pollution in the region ahead of the G20 Summit. According to the China Institute of Public and Environmental Affairs, Zhejiang province of which Hangzhou is the capital contains almost fifty percent of the country’s textile dyeing facilities. It is also anticipated that other industries and factories in the areas will face similar closures.
We will continue to work with our carrier partners to gauge the impact to their services and encourage members to discuss these closures and their effect on your supply chains with your factories and origin providers. We will continue to deliver updates on the situation, as we learn more.
