COVID continues to disrupt—everything.
The Port of New York and New Jersey is once again grappling with a spike in COVID-19 numbers, which has led to further congestion. The average wait time throughout 2021 was 1.6 days, but the final week of 2021 saw a wait time of 4.75 days. And, at a time when there’s significant volume growth, the number of longshoremen who are unavailable to work because of sickness or quarantine is up to about 350 per day. Problems have been further exacerbated due to heavy winter storms.
In the east, more goods are moving through the already congested Port of Shanghai, thanks to landside delays at the Ningbo-Zhoushan Port. Ningbo is facing another lockdown, which is severely limiting trucking access to the port. And with Chinese New Year just weeks away, some shippers are avoiding Ningbo entirely. Some are also facing feeder problems when using alternative ports, finding services suspended, or capacity limited.
1,000 miles south, in Shenzhen, new COVID cases are starting to spread and authorities are beginning to institute bans. Everyone should be prepared for an impact on trucker availability at this key box port.
Moving away from COVID-related news, the new Harmonized Tariff Schedule (HTS) came into effect on January 1, 2022. By now, all shippers should have updated and reclassified their part numbers. Failure to provide freight forwarders and/or custom brokers with revised classification numbers could result in more delays at ports of entry. Regarding Section 301 tariffs against China, there has been no move to either reduce or eliminate them.
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) recently added new or expanded Export Commodity Classification Numbers (ECCNs). Emerging technologies, such as artificial intelligence, are now classified under ECCN 2D352. Shippers need to remain up to date with all new export controls, such as using the correct ECCN number, in order to avoid violations, delays, or seizure of goods.
Not to be overlooked, the Ports of Los Angeles and Long Beach are still facing unprecedented traffic jams. As of Friday, January 7, there were a record number of 105 container ships waiting for birth at the port. This is three times the amount of vessels waiting to birth than there were at this time last year. Even though the holiday rush is over, the congestion at the court continues to increase, with concerns increasing over Omicron-related dockworker shortages.
For the rest of this week’s top stories, check out the article highlights below.
