Peter Friedmann's View From Washington DC - July 2024
Major trade and transportation developments impacting PCC brokers and forwarders.
Protectionism is Increasing. Unfortunately for all of us who depend upon international trade for our living, including brokers, forwarders, NVO’s, protectionism is rampant and bipartisan. China bashing very apparent at the Republican and Democratic conventions. My take-away: The trade community needs to recognize the threat and mobilize to educate Congress and whomever the President will be.
Federal Court Threatens Detention/Demurrage Protections: Federal Appeals Court last week agreed that Evergreen can impose demurrage for container on marine terminal, even on days that the terminal is closed. Remanded to FMC to review and revise its prohibition on charging D & D when containers are not available. My take-away: Throws the entire OSRA ‘incentive principle’ into question, undermines the foundation of OSRA, and the FMC’s discretion to apply its D & D Rule.
Can’t Beat’em, then Join’em: Amazon going into the Shein and Temu business – taking sellers’ inventory for non-branded goods, direct ship 9-11 days to customer. My take-away: Congressional and CBP efforts to limit imports from China via ever-stricter UFLPA and deminimis enforcement, are not scaring importers. In fact, an ever- growing percentage of imports arrives outside traditional entry processes.
GSP on hold in Senate, waiting for AGOA. Behind the scenes: Senate Finance Committee Chair wants to wait to work out ‘concerns’ over AGOA renewal. My take-away. Despite this delay and partisan dispute over Trade Adjustment Assistance, GSP will be renewed by end of the year, and be retroactive.
US Union Attack on Chinese Shipbuilding: $1,000,000 fine on every ship-call by a Chinese-built ship. My take-away. This would impose unwelcome new costs on imports and exports, as USTR Tai continues to support US labor union efforts to curtail imports. But I feel this will prove ‘a bridge-too-far’.
Comment period on extension of 301 exclusions is expiring.
Plenty on the trade plate, heading into the final months of this Congress.
Peter
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