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Dear Value Client
First and foremost - Please stay safe, look after yourselves, and others. Follow the guidelines, and don’t venture from home unnecessarily - We all need to play our part.
As you’re no doubt aware BRi is classified as an essential service, so this see the BRi team operating remotely whilst in Level 4 lockdown, but it remains business as usual albeit in a new normal for us.
We remain fully contactable on all the usual email and phone numbers and continue to actively manage your supply chains over this time.
We’re very conscious of not wanting to overwhelm people with too much information now, so we are trying to balance the need to pass on relevant information verses the seemingly nonstop updates we’re receiving from the industry, and partners.
A couple of recent updates from US Partners are below for your reference. Many of the local point’s highlight apply on a Global Origin/ Destination basis. We also have some positive news to pass on in terms of local liner detention charges – As per the enclosed Liner updates that we have received over the past couple of days, Liners are beginning to announce Detention waiver programs. Please note that this applies to Detention and they do not extend to Demurrage as these charges are controlled by the various Port Companies. We will keep you updated as other lines advise their policy’s according.
BRi USA News - Passenger Airlines Morph into Cargo Carriers
With freight capacity scarce, the number of passenger airlines offering dedicated charter flights is proliferating.
More passenger airlines are helping fill the severe shortage in freight capacity by turning their aircraft into cargo-only airplanes to haul critical medical supplies, foodstuffs and other economically essential goods. The rapid implosion of air travel as countries closed borders to contain the coronavirus outbreak forced airlines to ground most of their fleets, especially widebody planes used in intercontinental service. Lower-deck space in passenger planes represents about half the worldwide capacity for moving goods – and even more between North America and Europe.
With one million flights cancelled through June 30, there aren’t enough all-cargo planes to make up the difference and air freight rates are shooting up as a result. A one-way charter for a full freighter on key routes can cost up to $1 million today, four times the rate before the crisis, according to industry experts.
Airlines are relying heavily, but not exclusively, on large aircraft such as the Airbus A350, and the Boeing 777 and 787 that carry huge amounts of cargo even when loaded with passengers and baggage. Much of the activity at present is trans-Atlantic, but airlines are also dispatching cargo-only flights between North America and South America, and Australia, and between Europe and Asia. Some carriers are being creative by putting cargo in the seats of the passenger compartment, secured by netting and other restraints, to maximize efficiency. And a few are offering multi-party, less-than-full aircraft charters for importers and exporters that don’t have enough volume to rent an entire plane.
Airlines making the shift to utilize passenger airplanes include Air Canada, Lufthansa, United Airlines, Delta Airlines, American Airlines, LATAM Airlines, Virgin Atlantic, Etihad Airways, Air New Zealand, China Eastern Airlines, Cathay Pacific and International Airlines Group (IAG, parent company of British Airways).
While not every plane is equipped with the safety mechanisms to carry all cargo, such as pharmaceuticals, airlines are doing their best to accommodate as much cargo as possible. For more information on flight availability, please reach out to your assigned BRi representative
Additional Section 301 Product Exclusions Announced, Select Medical Supplies Included
The United States Trade Representative has announced additional exclusions from the China Section 301 tariffs for List 4 goods. Included in this round of exclusions are 7 product specific exclusions and five 10-digit HTS codes. The provisional HTS code is 9903.8844 for these exclusions that are retroactive to September 1, 2019 and remain in effect until September 1, 2020. Importers should review the newly excluded products and apply for refunds of any tariffs paid on such goods since Sept. 1, 2019. Importers may utilize these exclusions for any product that meets the descriptions in the USTR notice, even if they did not request it.
Port Status Update
Philippines – Manila Ports
This week we received second-hand reports that South Terminals in Manila were possibly affected by Labour action associated with COVID-19. This morning we learned those reports were inaccurate and can report:
China/Hong Kong/European Ports
Note that our carriers have informed us that all China/Hong Kong ports are open and operating at normal levels, excluding Wuhan, which is still awaiting approval from local authorities to reopen. European ports are also open and operating at normal levels, excluding Le Havre, which is experiencing some port congestion.
Pile Up of Non-Essential Cargo at US Ports Raises Alarms
As a valued customer of BRi, we appreciate your business, and we will continue to source the best options for your supply chain needs now and into the future.
Keeping You Informed!
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