May Newsletter 2023 | Volume II Issue V

Rogers & Brown Newsletter

Rogers & Brown Tagline

Inside this Issue:

Regulatory Developments

International Freight Market

Domestic Freight Market

Port News

R&B Team Member Highlight

R&B Service Highlight

Newsletter Feedback

Regulatory Developments

Attention Air Exporters:

A new TSA (Transportation Security Administration) change is on the horizon, which will have significant implications for air exporters dealing with large crates or shipments that are hard or impractical to screen (ITS). In June 2021, the TSA implemented a mandatory requirement that all freight must be screened, including these types of oversized cargo.

However, recognizing the challenges involved in screening such shipments, the TSA allowed shippers to utilize exemptions to bypass this mandate. These exemptions provided a temporary solution for air exporters with ITS cargo, allowing them to continue moving their freight on cargo flights without undergoing screening.

The TSA has announced that these exemptions will only be available until October 31, 2023. After this date, air exporters will no longer have the option to utilize exemptions to avoid the screening requirement. This means that all freight, including large crates or shipments that were previously exempt, will need to undergo mandatory screening.

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International Freight Market

Ocean Deep Dive May 2023: 3 Trends To Watch

The ocean market is facing challenges with low demand, inflation, and rate increases, causing uncertainty. Shippers have gained more power as carriers struggle to dictate rates. While there have been signs of improvement in the rate market, overall demand has not fully recovered.

Carriers attempted to increase rates, but shippers negotiated them down. Reshoring production closer to home has been considered but remains limited. China maintains an advantage in transport infrastructure. Shippers are advised to focus on transparency, agility, and collaboration in their supply chain strategies to successfully navigate the market's changes.

Source: https://www.linkedin.com/

Battle joined over costs linked to detention/demurrage maneuvering.

The ongoing debate continues surrounding detention and demurrage charges for shippers when terminal gates are closed. Despite previous actions by the US Federal Maritime Commission (FMC) and legislation addressing unfair charges, the issue of who is responsible for storage costs remains unresolved.

Terminal operators are now taking actions such as keeping gates open on weekends or raising demurrage fees on open days to offset revenue losses. Shippers argue that keeping gates closed on weekends and holidays would be the simplest solution, but terminals claim they still incur costs for containers on their premises. The underlying principle of incentivizing cargo movements is at the heart of the conflict, with both sides pointing to different perspectives.

The FMC's goal is to ensure port fluidity and timely container removal. The issue will be further addressed in an upcoming FMC rulemaking on detention and demurrage billing expected in mid-June.

Source: www.JOC.com

Global Trade Faces New Stress Test as Panama Limits Shipping

Global trade is facing a potential stress test due to extreme weather, specifically a severe drought around the Panama Canal. This drought is forcing container vessels to lighten their loads, reducing capacity, increasing the risk of delays, and leading to surcharges for cargo owners. If the situation worsens and lake levels continue to fall as predicted, shipping rates will rise, and carriers will scramble to find faster routes. This comes at a challenging time as shipping demand typically increases in August and September for the back-to-school and holiday shopping seasons. The lack of rainfall in Panama is expected to persist, exacerbating the impact on shipping over the canal.

At Rogers & Brown, we understand the challenges posed by extreme weather and the potential disruptions it can cause in global trade. We are committed to providing alternatives to support your business, even in adverse circumstances.

Source: https://www.bloomberg.com/

Domestic Freight Market

EIA expects lower crude oil prices for the second half of 2023 and for 2024

Crude oil prices have dropped rapidly since April, leading to a lower forecast for the remainder of 2023 and 2024.

The decline is due to a mix of supply and demand factors. Concerns about China's economic growth and a possible U.S. recession are driving reduced oil demand.

Additionally, higher-than-expected oil flows from Russia have increased global supply and pushed prices down. However, OPEC has agreed to reduce oil production, which is expected to result in moderate price increases in the coming months. OPEC's total production of liquid fuels is estimated to decrease from 34.0 million barrels per day in April to an average of 33.7 million barrels per day for the rest of 2023.

Source: www.eia.gov

Port News

SC Ports sees volumes trending up in April - SC Ports Authority

South Carolina Ports experienced an increase in cargo volumes in April, driven by the strong Southeast market and investments made by retail importers and advanced manufacturers in the state. Despite a 19% year-over-year decline in volumes due to decreased consumer spending, there was an 11% month-over-month increase. In the current fiscal year, SC Ports handled 2.18 million TEUs and nearly 1.21 million pier containers, representing a 9% decrease compared to the previous year. Additionally, the rail-served inland ports in Greer and Dillon recorded a significant increase in rail moves, and SC Ports also handled vehicles and cruise passengers. To support future growth, SC Ports is investing in a near-port intermodal hub to enhance rail competitiveness and improve customer service.

Source: https://scspa.com/

House bill wants security checks of port cranes made by US 'adversaries'

Legislation has been introduced in the U.S. House of Representatives that would require inspection of cranes manufactured in countries considered "foreign adversaries" before their deployment in U.S. seaports. While the bill does not explicitly name any specific countries, it specifically mentions China, as the majority of cranes used in U.S. ports are made there. The legislation aims to address concerns about potential espionage or cyberattacks through the use of technology in these cranes.

The bill would require the U.S. Cybersecurity and Infrastructure Security Agency (CISA) to conduct inspections for security vulnerabilities before the cranes are put into operation. The American Association of Ports Authorities (AAPA) has criticized the bill, stating that there is no evidence to support the sensationalized claims and highlighting the rigorous security inspections already in place for cranes used in U.S. ports.

Source:JOC.com

R&B Team Member Highlight

Lauren Jones

Senior Air Account Representative

Lauren joined the R&B team over six years ago, working first in the ocean freight department before moving to the R&B airfreight team.

Working in air transportation opened Lauren’s eyes to the complexities, intricacies, and excitement that is inherent in international airfreight.

She was hooked!

Her experience in the logistics business has changed her perspective when shopping in retail outlets or otherwise – logistics is everywhere, and a lot of work is required to get products to the right place by the right time!

Lauren has continued with the airfreight team enhancing her abilities by gaining system certification, learning key accounts, and continuously working with customers to service their airfreight needs.

Lauren currently acts as a team lead and manages inbound airfreight transportation. She says the transportation side is most enjoyable as there is always something new to learn, and she enjoys finding solutions and cost savings for our clients. She attributes her success to the fantastic team she has around her.

Lauren resides in Greenville, SC, with her husband and two children and works out of R&B’s Greer, SC offices.

R&B Service Highlight

Airfreight Operations

Discover the efficiency and reliability of our air freight services at Rogers and Brown. Whether you have urgent shipments or require fast and secure transportation, our experienced team is ready to assist.

Global import and export service offerings
Door-to-Door transportation
Compliance support
Expert knowledge and 60 years of team experience
Export regulatory management
Import Customs Clearance
Single account representative
Expedited / 24/7 service options

We invite you to inquire about our seamless air transport solutions to meet your shipping needs!

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