The BOC Blast 359 – 90-Day Duty Tax and Fee Postponement-

90-Day Duty, Tax, and Fee Postponement

On April 22nd, 2020 CBP is publishing the 90 Day postponement for certain estimated duties, taxes, and fees. As CBP does have a scheduled publication date, BOC wanted to notify our Importers. Below is the link to the Federal Register document. Please review the FR notice tomorrow, to ensure compliance. 

https://www.federalregister.gov/documents/2020/04/22/2020-08618/temporary-postponement-of-the-time-to-deposit-certain-estimated-duties-taxes-and-fees-during-the

CSMS #42423171 – COVID-19 – 90 Day Postponement of Payment for the Deposit of Certain Estimated Duties, Taxes, and Fees

BOC will need to receive the below statement on your company’s letterhead and signed by a corporate officer.

(Company name, IRS#)                                        confirms that it satisfies CBP requirements for the 90-day postponement of payment for imports duty, taxes and fees.  Due to the COVID-19 pandemic, local, state and national restrictions have caused significant financial hardship, (Company name) has an order from competent governmental authority. (Company name) has verified that our operation is fully or partially suspended during March 2020 or April 2020. The gross receipts for March 13-31, 2020 or April 2020 are less than 60 percent of the gross receipts for the comparable period in 2019. We have verified that our entries are not antidumping duties, countervailing duties, section 232 tariffs for steel and aluminum imports, section 201 tariff rate quotas for solar cells and panels and/or section 301 tariff for products of China.

REQUIREMENTS / ELIGIBLE & NOT ELIGIBLE PRODUCT

  1. Importer must have significant financial hardship
  1. If operations fully or partially suspended during March 2020 OR April 2020, the suspended operations must be due to orders from a competent government authority limiting commerce, travel, or group meeting due to COVID-19. 
  • AND such suspension resulted in the gross receipts for March 13-31, 2020 OR April 2020 are less than 60% of the gross receipts for the comparable period in 2019
  • AND eligible importers do not need to file documents with CBP to be eligible for this relief
  1. BUT must maintain documentation as part of its books
  1. AND records establishing that it meets the requirements for relief
  1. ALSO CBP may conduct a review of documentation at a future date to ensure compliance.
  • Temporary postponement does not apply to any entry / withdrawal from warehouse for consumption
  1. No antidumping duties
  • No countervailing duties
  • No section 232 tariffs for steel and aluminum imports
  • No section 201 tariff rate quotas for solar cells and panels
  • No section 301 tariff for products of China
  • Entries NOT eligible if the entry summary includes merchandise subject to ADD, CVD, section 232, section 201 and section 301.

The importer will need to take the commercial invoice and document the commodities NOT eligible for the 90-day postponement. BOC will not be responsible and will be charging two entry fees for the two separate entries. BOC is charging a $ 150.00 flat clearance fee for the commodities not under the 90-day postponement, and the importer’s clearance fee for the consumption entries that quality for the 90 days. 

  1. Separate entries pursuant to 19 CFR 141.52 has been authorized by CBP
  1. Only applies to entries NOT yet filed
  1. If an importer has merchandise not eligible and merchandise eligible on the same AMS B/L, two separate entries can be made

PAYMENT TIMEFRAMES

Estimated duties, taxes, and fees paid on single pay basis or Daily Statement may be postponed up to 90 days from the payment due date.

Example:

Original Due Date                               90-Day Postponement

April 30, 2020                                        July 29, 2020

Estimated Internal Revenue Tax paid via the deferred tax schedule may be postponed up to three months from the payment due date.

Example:

Original Due Date                               3 Month Postponement

April 29, 2020                                        July 29, 2020

May 14, 2020                                         August 14, 2020

Estimated duties and fees paid via Periodic Monthly Statement (PMS) may be postponed up to three months, as defined by the 15th working day of the third month.

Example:

Original Due Date                               3 Month Postponement

April 21, 2020                                        July 22, 2020

May 21, 2020                                         August 21, 2020

PAYMENT INSTRUCTIONS

The authorization of 90 additional calendar days without penalty for payment applies whether an entry summary is paid as a single-pay check, ACH Daily and Monthly Statement, or PMS.  

Importers/Filers who choose to take advantage of the additional 90 calendar days for the payment of the deposit of estimated duties, taxes and fees have the responsibility to schedule payments accordingly. CBP will not adjust statement dates.

Effective Sunday, April 19, 2020, CBP is deploying updates to the ACE SU statement transaction to give the importer/filer more flexibility when removing entries from a PMS:

  1. Entries removed from statement no longer have to be submitted as single pay. The importer/filer can reschedule entries that were removed from one statement for another statement.
  • The importer/filer can now remove Remote Location Filing (RLF) entries from a PMS, including the April PMS, and schedule those entries for another statement.
  • The importer/filer can now schedule the month further out than two months, so that they do not have to further push the Periodic Daily Statement (PDS) date. This will allow the importer/filer to file an entry with an April PDS date and schedule for the July monthly statement.

The BOC Blast 358 – Blank Sailings Updated on 4-3-20

Blank Sailings Updated on 4-3-20

ALLIANCE LANE SERVICE ROUTING ETD
SHENZHEN
OA PSW COSCO/APL/EMC/OOCL/CMA
AAS/SC6/PVCS/PVCS/SCS
VUNG TAU-HONGKONG-YANTIAN-KAOHSIUNG-LGB 21-Apr-20
2M AWR MSK/MSC/HBS/ZIM
TP88/PELICAN/ASUS6/ZGX
XIAMEN-YANTIAN-HOUSTON-MOBILE-TAMPA 20-Apr-20
2M AWR MSK/MSC/HBS/ZIM
TP16/EMERALD/ASUS3/ZSA
XIAMEN-KAOHSIUNG-YANTIAN-SHANGHAI-BUSAN-SAVANNAH-NORFOLK-CHARLESTON-NEWARK 25-Apr-20
ALLIANCE LANE SERVICE ROUTING ETD
SHANGHAI
2M PSW MSK/MSC/HBS/SML
TP8/ORIENT/UPAS1/PS1
QINGDAO-SHANGHAI-NINGBO-BUSAN-LGB-OAKLAND 24-Apr-20
OA PNW+PSW COSCO/APL/CMA/EMC/OOCL
CEN/CC2/BOHAI/CEN/PCN1
TIANJIN-QINGDAO-SHANGHAI-NINGBO-LGB-SEATTLE-PRINCE RUPERT 10-May-20
OA PSW COSCO/APL/CMA/EMC/OOCL
AAC4/CC9/HIX/PCC1/PCC1
NINGBO-SHANGHAI-BUSAN-LGB 12-May-20
2M AWR MSK/MSC/HBS/ZIM
TP16/EMERALD/ASUS3/ZSA
XIAMEN-KAOHSIUNG-YANTIAN-SHANGHAI-BUSAN-SAVANNAH-NORFOLK-CHARLESTON-NEWARK 25-Apr-20
2M AWR MSK/MSC/HBS/ZIM
TP10/AMBERJACK/ASUS1/ZCP
TIANJIN-QINGDAO-NINGBO-SHANGHAI-BUSAN-SAVANNAH-CHARLESTON-WILMINGTON-JACKSONVILLE 14-May-20
ALLIANCE LANE SERVICE ROUTING ETD
HONG KONG
OA PSW COSCO/APL/EMC/OOCL/CMA
AAS/SC6/PVCS/PVCS/SCS
VUNG TAU-HONGKONG-YANTIAN-KAOHSIUNG-LGB 20-Apr-20
ALLIANCE LANE SERVICE ROUTING ETD
QINGDAO
OA PNW+PSW COSCO/APL/CMA/EMC/OOCL
CEN/CC2/BOHAI/CEN/PCN1
TIANJIN-QINGDAO-SHANGHAI-NINGBO-LGB-SEATTLE-PRINCE RUPERT 06-May-20
2M PSW MSK/MSC/HBS/SML
TP8/ORIENT/UPAS1/PS1
QINGDAO-SHANGHAI-NINGBO-BUSAN-LGB-OAKLAND 22-Apr-20
2M AWR MSK/MSC/HBS/ZIM
TP10/AMBERJACK/ASUS1/ZCP
TIANJIN-QINGDAO-NINGBO-SHANGHAI-BUSAN-SAVANNAH-CHARLESTON-WILMINGTON-JACKSONVILLE 10-May-20
           
ALLIANCE LANE SERVICE ROUTING ETD
NINGBO
2M PSW MSK/MSC/HBS/SML
TP8/ORIENT/UPAS1/PS1
QINGDAO-SHANGHAI-NINGBO-BUSAN-LGB-OAKLAND 26-Apr-20
OA PSW COSCO/APL/CMA/EMC/OOCL
AAC4/CC9/HIX/PCC1/PCC1
NINGBO-SHANGHAI-BUSAN-LGB 10-May-20
OA PNW+PSW COSCO/APL/CMA/EMC/OOCL
CEN/CC2/BOHAI/CEN/PCN1
TIANJIN-QINGDAO-SHANGHAI-NINGBO-LGB-SEATTLE-PRINCE RUPERT 11-May-20
2M AWR MSK/MSC/HBS/ZIM
TP10/AMBERJACK/ASUS1/ZCP
TIANJIN-QINGDAO-NINGBO-SHANGHAI-BUSAN-SAVANNAH-CHARLESTON-WILMINGTON-JACKSONVILLE 12-May-20

The BOC Blast 357 – US ports, warehouses stay open

COVID-19 Freight Update: US ports, warehouses stay open.

JOC Staff | Mar 20, 2020 5:40PM EDT

As the impact of the coronavirus disease 2019 (COVID-19) deepens in the United States, major ports, warehouses, and freight transportation providers are telling customers they will remain open as they are deemed essential services by the government

Essential staff supporting the ports of Los Angeles and Long Beach, including longshore workers and drayage drivers, for example, are exempt from California Governor Gavin Newsom’s Thursday “shelter-in-place” order.  

The Southern California ports issued statements on Friday emphasizing that since they handle a wide range of critical cargoes from medical supplies to basic consumer staples, both the state and county of Los Angeles regulators have exempted port and supply chain activities from stay-at-home mandates.

Noel Hacegaba, deputy executive director and chief operating officer at the Port of Long Beach, said the ports have lobbied the county and state on behalf of all supply chain participants.

“Specifically, we have requested that ports be classified as essential infrastructure and businesses that are part of the end-to-end supply chain be classified as essential operations in order to ensure full benefit to the economy,” Hacegaba said.

Gene Seroka, executive director of the Port of Los Angeles, said that with 12 container terminals and extensive container yard acreage, the neighboring ports are able to remain “nimble” and shift freight volume around throughout the largest US port complex as needed.

For example, vessel-sharing alliances call at multiple terminals in the port complex, so the terminals are able to handle cargo surges by sharing the load. Also, the ports and terminals will be able to respond to interruptions due to health emergencies, such as a worker testing positive for COVID-19, as happened Thursday in Houston. 

Seroka said the ports have met with the chief medical adviser for Los Angeles County and developed a safety protocol and a contingency plan in the event of an emergency.

The International Longshore & Warehouse Union and the Pacific Maritime Association, which represents shipping lines and terminal operators, have worked out their own safety protocol, which includes social distancing and a greater reliance on electronic dispatching when possible, said James McKenna, PMA president. 

The Harbor Trucking Association in Southern California on Friday emphasized the exemption that the supply chain logistics industry has from Gov. Gavin Newsom’s stay-at-home order.

“By order of the governor, port operations, manufacturing and distribution are considered critical and essential, as part of America’s supply chain, which must continue,” the HTA stated.

The HTA’s daily update on the COVID-19 disruption on Thursday listed the broad range of industry workers who will continue to work in the current environment. 

“Employees supporting or enabling transportation functions, including dispatchers, maintenance and repair technicians, warehouse workers, truck stop and rest area workers, and workers that maintain and inspect infrastructure, including those that require cross-border travel,” the HTA said.

In a Friday statement, the Port of Oakland reaffirmed its status as a provider of essential services, and ILWU Local 10 tweeted it will would be taking safety precautions while it continued to move cargo through the port. 

East, Gulf coasts ports adjust 

Like in California, the Port of Charleston in South Carolina is exempt from a stay-at-home order issued Thursday by the mayor of Mount Pleasant, where the Wando Welch Terminal is located. All terminal staff, truck drivers, and workers at nearby off-dock rail ramps are considered essential employees, as are warehouse workers handling cargo.

The ports of Virginia, Wilmington (N.C.), Charleston, Jacksonville, Everglades are open normal hours. In Savannah, terminal hours remain the same Monday through Friday, but Saturday gate hours have been canceled through mid-April.

In New Jersey, Governor Phil Murphy on Friday said he is looking at closing non-essential businesses in the state, to halt the spread of the COVID-19. However, as in other states, port workers likely will not be affected.

The closure of the Port of Houston on Wednesday night after the port administration learned that a part-time truck driver who worked at the port’s two main container terminals — Barbours Cut Container Terminal and Bayport Container Terminal — had tested positive for the COVID-19 highlighted the difficulty of ensuring infected employees do not come to work. The terminals reopened Thursday evening after the port authority said an investigation determined the truck driver’s exposure to others “was fairly limited.” 

Ensuring that infected employees don’t come to work is no easy task, however. In Houston, for example, the employee only learned he tested positive several days after he had worked at the terminals.

The Seagirt Marine Terminal in Baltimore has closed twice this month because of lack of volume. Miami’s South Florida Container Terminal was closed Friday and the Port Miami Terminal Operating Co. will be closed Monday and Tuesday also because of low volume.

The Port of NY & NJ Is Open

(https://www.panynj.gov/port/en/index.html

The Port is open and operating under normal conditions amid the unfolding health crisis associated with COVID-19. Our supply chain partners from the marine terminal operators and longshore labor to truckers and warehouse and distribution center operators are working hard to help sustain our economy and support the 28 million consumers in the local region that are dependent on the Port during this difficult time.

The BOC Blast 354 – Transatlantic Air Freight Rates Soar as US Imposes Europe Travel Ban

Transatlantic Air Freight Rates Soar as US Imposes Europe Travel Ban

Theloadstar.com March 12, 2020

Transatlantic air freight rates are expected to soar, possibly overnight, following the US travel ban on mainland Europe, excluding – for now – the UK and Ireland.

Up to 80% of air freight capacity on the transatlantic could be cut as airlines ground passenger flights, with bellies normally taking the lion’s share of the capacity on the route.

“IAG, Air Canada, Virgin and Aer Lingus are all going to be very busy,” said one senior air freight analyst. “There is a tremendous amount of trade between the two continents, and the vast majority is in bellies. If that capacity plunges, you can only imagine the reduction in trade on the Atlantic. There is going to be tremendous pressure on capacity.”

One European forwarder told The Loadstar: “This is going to be another case of ‘pay to play’. Where prices are going to go is anyone’s guess.” Current dynamic load factors on the transatlantic are 78% westbound, and 60% eastbound, according to Clive Data Services. Even with a modest assumption of 60% of the capacity removed, demand is easily going to outstrip supply.

“There are so few airlines with freighters left,” said the analyst. “The US majors have none, it’s really only Lufthansa and AF-KLM, and they have cut their freighter fleets. This is a big gift for IAG.”

Forwarders said that any BSAs on non-cut capacity would be unlikely to be honored by the airlines, and in any event, most contracts would only last until the end of the month.

“The US market tends to work on spot rates anyway.”

Airlines throughout Europe are said to be in meetings to determine how to manage their capacity, with more information expected this afternoon. Some are already talking about using passenger aircraft just to move freight on the transatlantic – and are looking to command a high price for it.

Trucking is also expected to be key, with mainland European carriers looking to fly goods into Canada and Mexico on passenger aircraft and trucked over the borders into the US. In Europe, forwarders are looking to truck freight into the UK for Virgin and IAG flights into the US.

“Cargo is going to be redirected and trucked,” said one forwarder. “The multinational forwarders will already be diverting it to the UK.”

However, belly capacity from the UK has already been cut. BA announced on 2 March it was cutting back transatlantic flights as passenger demand fell. Norwegian cancelled 22 long-haul flights between Europe and the US from 28 March to 5 May.

The BOC Blast 353 – Coronavirus US exporters warned about pending shortages of empty containers

US exporters warned of pending shortages of empty containers

Bill Mongelluzzo, Senior Editor | Feb 18, 2020 5:30PM EST, JOC.com, March 2, 2020

Carriers are warning US exporters that with Chinese factories crippled for a third consecutive week and carrier announcements of more than 80 blank sailings in February and March, the shortage of empty containers beginning to surface in the US interior will intensify in the coming weeks.

Additionally, export spot rates to Asia are beginning to increase as space on vessels leaving US ports tightens. “The imminent thing is the escalating number of blank sailings. That is going to have an impact on the influx of equipment to the US,” said Uffe Ostergaard, president of Hapag-Lloyd Americas.

A sudden downturn in imports can result in a shortage of containers that are available to carry US exports. With fewer laden inbound containers unloading in population centers such as Chicago, Minneapolis, or Columbus, Ohio, there will be insufficient empty containers in those regions to meet the demand from exporters for products such as scrap materials or agricultural commodities.

Blank sailings could spawn container shortages

Carriers are beginning to notify customers that the growing number of blank sailings in the trans-Pacific due to factory shutdowns in Asia for the week of Lunar New Year in late January, followed by extended shutdowns due to the coronavirus (COVID-19) in China, would disrupt the flow of import containers into the US.

“The carriers are notifying us about a shortage,” said Hayden Swofford, independent administrator of the Pacific Northwest Asia Shippers Association, which represents forest products exporters. The container shortages normally develop first in the interior, but eventually work their way back to the West Coast, he said.

Exporters of soybeans and specialty agricultural products in the upper Midwest have begun to experience problems getting all of the empty containers they need, said Bruce Abbe, transportation strategy adviser to the Specialty Soya and Grains Alliance.

“It’s blank sailings compounding other blank sailings,” Abbe said. Canceled sailings and staff shortages at shipping lines and warehouses across Asia, especially in China, are limiting the volume of Asian exports to the United States, he said. Spot shortages of containers are surfacing near hubs such as Chicago and Minneapolis. “There’s a lot of uncertainty now. Everybody will be looking to do work-arounds the best we can,” Abbe said.

From past experiences after the Lunar New Year, exporters around Chicago, Minneapolis, Detroit, and Cincinnati and Columbus in the Ohio Valley, will probably encounter shortages of empty containers, which could be more extensive this year because of the extended factory closures due to the coronavirus, Krause said.

A shortage of empty containers is also emerging in the agricultural-rich Central Valley of California, said Peter Friedmann, executive director of the Agriculture Transportation Coalition.

So far, export shipments in the trans-Pacific have not been rolled due to a lack of vessel space. Export shipments this season have been consistent, but Krause said Seko is alerting its customers that exports could spike in March, which is normally a peak month in the westbound trans-Pacific.

Export spot rates in westbound trans-Pacific increasing

Carriers are also notifying customers of general rate increases (GRIs) in the westbound Pacific, which indicates they anticipate bookings will pick up.

Some carriers told JOC.com this week they not only anticipate that export rates will go up, but also that they will begin limiting shippers to the volume agreed upon in their minimum quantity commitment (MQC), with the exporters having to sign new contracts if they intend to exceed their MQC.

The US East Coast has yet to feel the drop in imports because of longer transit times from Asia. “As of this moment in terms of discharging and loading, it’s not a factor, but it will become a factor as we get into March,” said Sam Ruda, the seaport director at the Port Authority of New York and New Jersey.

“I am not seeing any structural equipment imbalances,” he added. “That may start looking a little different in the next few weeks as we see what the volumes look like, so we’re keeping a very close eye on it.”

The BOC Blast 352 – Section 301 Large Civil Aircraft (LCA) Trade Remedy – Modification March 5 2020 and March 18 2020

Section 301 Large Civil Aircraft (LCA) Trade Remedy – Modification March 5, 2020 and March 18, 2020

CBP Modification, Section 301 duties for EU/EU Member States

The U.S. has been in dispute with the European Union (EU) and certain EU member states concerning the subsidies provided on large civil aircrafts that are inconsistent under SCM Agreement and GATT 1994 obligations.  CBP has posted the modification to the additional Section 301 duties for EU and EU member states, on February 21,2020 please see 85 FR 10204.  Please see the below chart from Cargo System Messaging Service (CSMS)

CBP CSMS # 41840662

CSMS #41840662 – Section 301 Large Civil Aircraft (LCA) Trade Remedy –
Modification March 5, 2020 and March 18, 2020

The purpose of this memorandum is to provide notice of the United States Trade Representative’s (USTR) modification determination to impose additional duties on products of the European Union (EU) or certain member states.  The effective date is dependent on the section of Annex 1 and may be either on or after 12:01 a.m. eastern daylight time March 5, 2020 or on or after 12:01 a.m. eastern daylight time March 18, 2020.  The complete list of affected products, countries of origin, Chapter 99 HTSUS numbers, and the associated effective dates and tariff rates is attached to the end of this memo.

BACKGROUND:

Effective October 18, 2019, the USTR imposed additional duties on certain products of the EU and certain EU member States in this Section 301 investigation to enforce U.S. WTO rights in the Large Civil Aircraft (LCA) dispute published in the Federal Register 84 FR 54245. On December 12, 2019, the USTR announced a review of the Section 301 action and requested public comments.

On February 21, 2020, based on this review, the USTR published a Modification to the LCA dispute in 85 FR 10204 to revise the action being taken by increasing the rate of additional duties on certain LCA, and by modifying the list of other products of certain current and former EU member States subject to additional 25 percent duties.

As specified in the annexes to FR notice 85 FR 10204 , the USTR has determined to increase the duties on certain LCA from 10 percent to 15 percent.  The countries that are affected by the duty increase for LCA are France or Germany.

The USTR has also changed the composition of the list of products subject to additional duties of 25 percent. As of this time, the USTR has decided not to increase the rate of additional duties above the additional 25 percent currently being applied to non-aircraft products. The countries that are affected by the change to the list of products are Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden or the United Kingdom.  The LCA Section 301 duties only apply to products of the countries set forth in the Annex to FR notice 85 FR 10204.

The USTR has also determined that going forward, the action may be revised as appropriate immediately upon any EU imposition of additional duties on U.S. products in connection with the LCA dispute or with the EU’s WTO challenge to the alleged subsidization of U.S. large civil aircraft.

GUIDANCE:

The modifications set out in the Annex 1, subparagraphs A and B are applicable with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 5, 2020.  The modifications in additional import duties for products set out in Annex 1, subparagraph C, apply to merchandise entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time March 18, 2020.  A complete list of products subject to the remedy and assessed duties are set out in FR notice 85 FR 10204.

ADDITIONAL INFORMATION:

Any product listed in the Annex 1, except any product that is eligible for admission under ‘domestic status’ as defined in 19 CFR 146.43, which is subject to the additional duty imposed by this determination, and is admitted into a U.S. foreign trade zone on or after 12:01 a.m. eastern daylight time on March 5, 2020 or March 18, 2020 (only) may be admitted as ‘privileged foreign status’ as defined in 19 CFR 146.41. Such products will be subject upon entry for consumption to any ad valorem rates of duty or quantitative limitations related to the classification under the applicable HTSUS subheading.

Reminder: When importers, brokers, and/or filers are submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, refer them to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are Required).

Please ensure the FR notice 85 FR 10204 is passed to all Center Directors, Assistant Center Directors, Port Directors, Assistant Port Directors (Trade), Import Specialists, CBP Officers, and Entry Specialists.  If field personnel have any questions regarding the Section 301 remedy described in the United States Trade Representative (USTR) Notices of Action, please contact traderemedy@cbp.dhs.gov.

Related Messages: CSMS 40430843, 40281968

The BOC Blast 351 – UPDATE Coronavirus – COVID-19 Origin Operations

UPDATE: Coronavirus/COVID-19 Origin Operation

Over the past week or so, the China government has reportedly lowered COVID-19 emergency response levels in some provinces, allowing workforce back into production. Return-to-work restrictions/requirements from the Chinese local authorities and some office building management teams remain in place.

A larger portion of our colleagues in China have returned to the offices, and the team is strictly following precautionary measures. While some teammates are working from home, we are operationally ready to manage business as normal:

Shanghai, Ningbo, Taiwan and Hong Kong: 100% of the teams are working in the office. 

Qingdao: 90% of the team is working in the office, with 10% working from home.

Shenzhen: 60% of the team is working in the office, with 40% working from home.

Xiamen, Fuzhou and Tianjin: 50% of the team is working in the office, with 50% working from home.

Dalian: 40% of the team is working in the office, with 60% working from home.

We continue to work with the relevant authorities to bring the full team safely back into our offices.

Other Market Developments

Drayage in China:  Cross-border trucking between China and Hong Kong continues to run, but it is highly recommended that bookings are made at least 2 days in advance to ensure driver availability. 

Availability of inland trucking in mainland China remains limited, advanced bookings of at least 2-3 days are required to secure trucking services.

International Air and Ocean Freight:  Production and export volumes from China have increased as the workforce returns, and demand for airfreight space, particularly to the rest of Asia, is picking up. There are also indications that ocean freight shippers are looking to switch modes in a bid to ‘catch up’ on schedules, further accelerating the demand for airfreight.

We are not expecting a quick reinstatement of cancelled airfreight capacity on both freighter and passenger flights outbound China, which we estimate to be well above 30% of last year’s global capacity (50% to the US, 50% to Asia, 35% to Europe), particularly passenger flights, as many countries maintain advisories against travel to China. At this point, we anticipate that airlines will initiate a resumption of capacity no earlier than the third week of March.

Airfreight rates soared on the China-Asia routes as capacity pulled out of this market is most significant, and demand for space has become ‘red-hot’. Air charters are in high demand, but supply is soft as the availability of aircraft and crew remain challenged.

The fallout from COVID-19 is strongly felt in the container shipping market. According to Alphaliner, Q1 2020 volumes at ports in China and Hong Kong are estimated to have reduced by more than 6 million TEUs due to the extended Lunar New Year holiday and COVID-19 containment measures.

Currently, container equipment is sufficient in China, but the availability of Non-Operating Reefers (NOR) is diminishing.

We will continue to update you as we receive more information. If you have questions, please contact your BOC Representative.

The BOC Blast 350 – Coronavirus – COVID-19 Operational Update

Coronavirus / COVID-19 Operational Update

  • Work Arrangements – Our teams are working as much as possible, guided by advice from local authorities to protect the well-being of our staff while maintaining maximum coverage and minimal operational disruption as possible
  • In China, our team is operating either from our offices or their homes, and we have implemented tiered working hours.
  • In Hong Kong, a portion of our staff is working from home while the rest is working from the office.
  • Market Developments
  • Factories in China are gradually resuming operations at a varying pace, a slow ramp-up in production and exports are still to be expected.
  • Drayage in China: Various provinces and cities have imposed restrictions on the entry of non-residents and vehicles registered outside their localities. This has given rise to a shortage and/or rate increase of inland trucking in the mainland China as truck drivers have not been able to return from their hometowns to their work regions post-holiday. Advanced bookings of at least 2 days is required to secure trucking services.
  • Air Freight: A large number of passenger and freighter flights to and from China have been cancelled, severely impacting capacity. Though freighter flights have gradually been reinstated from last week, with demand far outstripping supply, airfreight rates will likely be much higher than normal.
  • Ocean Freight: All Chinese ports except Wuhan are currently operational. However, many container yards have yet to re-open, potentially causing equipment shortages.
  • Global Port Developments

We will continue to monitor the situation closely and provide updates as we have them. Please contact your BOC Representative, if you have any questions.