CBP's new 'forced labor' rules burden every link in the chain

Key takeaway: The agency's consolidated guidance makes explicit what was only implied: if an importer can't document every supplier in a production chain, every single one, goods are denied entry. For forwarders and BCOs, this rewrites the economics of sub-tier visibility. There is a passage buried in U.S. Customs and Border Protection's new, roughly 80-page 'Forced Labor Enforcement Operational Guidance' for Importers that should make every logistics executive reading this set down their coffee. It is not a new ...

Will air cargo volumes be impacted by end of de minimis in EU?

E-commerce air cargo volumes into the European Union (EU) may be impacted by the end of the de minimis exemption and the introduction of higher costs for shippers. As of 1 July, the EU introduced a temporary €3 customs duty on low-value parcels imported from outside the EU, mainly through e-commerce. EU member states previously agreed to introduce the customs duty charge per item on parcels valued below €150. This is intended to bridge the gap until the EU Customs Data Hub is launched in 2028. This customs duty includes a wide range of products commonly bought online, such as clothing, toys, electronics, and other consumer goods. The new duty will apply per item, based on tariff classification and not quantity, said the European Commission. The seller or importer will be responsible for declaring and paying the duty as part of the customs process. It may become clear in the following weeks and months what impact the end of the exemption will have on e-commerce shipment volumes The US government's decision in April last year to end the de minimis exemption for imports from China valued at less than $800 resulted in increased costs and a drop in demand on the route. The policy was extended to apply to all countries of origin from the end of August last year. China's e-commerce export volumes shifted from China-US to China-Europe, although volumes to the US have now largely recovered. "Every day, millions of low-value parcels enter the EU," said the EC. "Many contain products that do not meet EU safety standards or are undervalued or falsely declared to avoid customs duties. "At the same time, the current customs duty exemption gives non-EU sellers an unfair advantage over businesses that manufacture or sell products in the EU." The EC added: "The new measure will help create fairer competition for EU businesses, better protect consumers from unsafe products, tackle customs fraud, and address environmental concerns over mass shipping. "The EU is working to modernise customs procedures to strengthen the single market and ensure that all businesses selling into the EU compete on equal terms while meeting the EU's safety and compliance standards." The UK is also exploring the removal of its own exemption for e-commerce parcels, although this is not expected until 2029. Airfreight rate analytics platform Xeneta predicted slower e-commerce growth this year due to increased shipper costs, tax reporting requirements in China and declining consumer purchasing power. But despite the global crackdown on import rules, IATA has previously said it was confident that demand for e-commerce will remain firm and the vertical will continue to drive air cargo volumes.

Carriers pour capacity into booming East Asia-Australia trade

Shipping lines are adding more capacity to the East Asia-Australia route, after freight rates surged by more than 30% within a month. Tight capacity resulting from high demand on the intra-Asia and long-haul routes, as well as congestion in key ports, are pushing up freight rates. CMA CGM's Australian subsidiary, ANL, will team with Cosco affiliate OOCL to start an Australia-China Express (ACX) service, using six 3,000-4,000 teu ships, with calls at Qingdao, Shanghai, Shekou, Melbourne, Sydney and Qingdao. ACX, with a 42-day turnaround, will start on 27 July, with 3,338 teu Colombo departing Qingdao. ANL already operates the A3N service that connects Yokohama, Osaka, Busan, Qingdao, Shanghai, Ningbo and Kaohsiung to Melbourne southbound, and northbound connects Melbourne, Sydney and Brisbane to Yokohama. ANL's move follows Maersk Line, which on 24 July, will launch the Qilin service, to connect Shanghai to Sydney and Melbourne using five 2,500-2,800 teu ships, Qilin complements the Danish carrier's Dragon service that connects Qingdao, Ningbo, Shanghai, Hong Kong and Yantian to Sydney, Melbourne and Brisbane. On 18 June, the Shanghai Containerised Freight Index showed the Shanghai-Melbourne rate rose 4% from 11 June, to $1,808 per teu. Year-on-year, the rate has more than doubled, from $763 per teu. Korea Ocean Business Corp's Container Composite Index today shows the Busan-Australia rate up 10% from a week ago, at $3,096 per 40ft. Forwarders told The Loadstar shipping lines were now quoting $2,000 per teu for Far East-Australia, highlighting the capacity shortage. This month, Port of Melbourne CEO Saul Cannon said container trade had risen more than 2% year on year in Q1, despite geopolitical volatility impacting shipping and fuel supply availability. April alone showed 7% year-on-year growth. Last year, Melbourne port exported 660,000 teu of goods. South-east Asia has emerged as a key growth market, now accounting for more than a quarter of container exports.