Catalyst Shipping Pvt. Ltd.

29/01/2023

Government to Waive Demurrage of Stuck Containers

The government has decided to exempt the stuck-up containers at ports from demurrage charges and also minimise detention charges of the terminals to facilitate the business community.

Federal Minister for Maritime Affairs Faisal Sabzwari announced it on Thursday via his Twitter handle, after the importers repeatedly complained about non-clearance of imported cargoes at the country’s ports amid a scarcity of foreign exchange to settle the letter of credits (LCs) by banks.

In his tweet, the minister said the decision was taken in view of the hardships of business community after their containerised imported cargoes were stuck up at the ports for the last several weeks.

“The economy can be stabilised by providing relief to the business community,” he said, adding that the officials of the ministry would hold consultations with representatives of business community for more measures in that regard.

Reacting to the announcement by the minister, the business community showed resentment, saying the decision would not resolve their problems as more than 95 percent imported cargoes had been stuck up at the private terminals and it was yet to be seen how the government would deal with those private terminals.

“The real issue rests with the private terminals as very little cargoes have been stuck up at the government terminals,” Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Shabir Mansha told The News.

He said the situation would be cleared when the policy was elaborated in detail.
The stuck-up containers carrying imported cargoes have been a source of concern for the importers when the banks refused to settle LCs on account of shortage of dollars after the government decided to settle LCs of only essential items like petroleum products, edible oil, etc.

The business community even came hard on the State Bank of Pakistan governor on the matter of stuck-up containers when he visited the FPCCI and Karachi Chamber of Commerce and Industry a day earlier

22/01/2023

https://www.catalystshipping.net/post/expectations-for-2023

16/01/2023

SBP removed the condition to seek prior approval before initiating any import transaction under Chapter 84 and 85 but it seems that the directives to banks were somewhat different because no ease in imports has surfaced so far as the LCs, to date, were not being opened by banks including the LCs of essential items such as raw materials, foodstuff, fruits, vegetables, pulses, medicines and other household products.

President KCCI stressed that the importers of essential items, whether commercial or industrial, should be treated at a par because industrial importers cannot import everything by themselves as there were many things which are to be purchased from the market as the inventory or the consumption does not allow them to import everything on their own.
“Therefore, the import by commercial
importers of raw materials for the industries, particularly the export-oriented industries, is critical so it should not be stopped at any cost.”

He stressed that the banks’ denial to issue LCs should be taken as a very urgent matter and strict directives have to be immediately issued with a view to improve the situation.

President KCCI further stated that another major problem was that a large number of containers were lying at the port awaiting clearance which has exorbitantly raised demurrage charges to such an extent that in many cases demurrages have exceeded the value of the goods in the container.
Moreover, these containers were the property of shipping lines that need to be returned at the earliest but the delays in clearing these containers was tarnishing the image of Pakistan.

Hence, he demanded from the government to issue directives for immediate release of all the detained containers without demurrage charges because the detention of the containers at the ports for a longer period was purely due to government’s decision so it was the government which should look into it otherwise many parties will go bankrupt if proper decision was not taken at the earliest.
“We recommend that the issue of detained container must also be given special attention and resolved immediately.”

10/01/2023

05/01/2023

Gawadar Port Starts Import of Fertilizer
Gwadar Port has begun the import of 200,000 tons of urea fertilizer for the government sector. This milestone project began just a few days before the end of 2022, and it appears to be a new step for 2023, Gwadar Pro reported it on Saturday.

This will help Gwadar Port establish itself as a regional logistics hub.

So far, the private sector has processed and transported all imported commodities from Gwadar Port, including wheat and fertilizer imported under the Afghanistan Transit Trade Agreement.

For the first time, Pakistan Trade Corporation (TCP) reached an agreement with China Overseas Port Holding Corporation (COPHC), the Chinese operator of Gwadar Port. The agreement now calls for the import of 200,000 tons of urea fertilizer from Gwadar Port in stages.

Gwadar Port began processing urea fertilizers after a bulk carrier named Ultra ESTERHAZY docked at Gwadar Port on December 29th with a consignment of 32,000 tons of urea. The total import will be completed in three phases.

COPHC official told Gwadar Pro that “Shipping service provider (Makran Trader) and Ship clearing agent are both local. This means Gwadar Port is providing business opportunities to the locals on a large scale.” He stated that because Gwadar port has gained credibility in the private sector, TCP is importing 200,000 tons of urea and 450,000 tons of wheat through Gwadar Port.
GPA sources revealed that Gwadar transshipment drive is picking up momentum. Gwadar Port recently processed a consignment of 8,000 tons of DAP fertilizers, which were then transported by road to Afghanistan, marking the first Afghanistan fertilizer shipment in 2022.

28/12/2022

New US customs Rules in effect, what you need to know.

Modernization of Customs Broker Regulations
Under the Modernization of Customs Broker Regulations, a customs broker must execute a Power Of Attorney with an Importer Of Record. A customs broker cannot execute a POA through a freight forwarder or other third-party in order to transact customs business on behalf of the importer. An Importer Of Record (IOR) must execute and sign the POA directly with the customs broker. An agent or third party cannot sign or negotiate the POA on the IOR’s behalf. However, the IOR may have an agent or third-party assist in executing the POA.

Elimination of Customs Broker District Permit Fee
Under the Elimination of Customs Broker District Permit Fee, CBP is eliminating broker districts and district permits. This removes the requirement for the maintenance of district offices, and district permit waivers. CBP is transitioning all brokers to national permits. By allowing this national permit holder would be able to conduct any type of customs business throughout the customs territory of the United States.

Below is a list of some changes coming to Federal Registry

Transition to a National Permit:

CBP eliminated broker districts and district permits.

Current district permit holders without a national permit will be automatically transitioned to a national permit before the final rule effective date on 12/19/22.
Allows the broker to conduct customs business on a national scope.

Eliminates permit waivers and simplifies permit management.

Under the transition to National Permit:
During the 60-days between Final Rule publication on October 18, 2022 and the effective date on December 19, 2022, U.S. Customs & Border Protection is transitioning all customs brokers operating solely under a district permit to a national permit as follows:
CBP will transition this pool of brokers to a national permit between the publication date and effective date of the Final Rules, December 19, 2022.

Current district permits will remain active until the effective date of the Final Rules and ACE National Permit programming is in place, December 19, 2022.

CBP will use a broker’s current district permit information for the creation of the national permit.

Each broker transitioned will be notified when their pending national permit has been created and given an opportunity to provide CBP with amended address and permit qualifier information.

Brokers that already have an active national permit are not affected by the 60-day transition activity.

Relationship Between Customs Broker/Client:
Customs Brokers must execute a customs power of attorney directly with the importer of record and not though an freight forwarder or other (unlicensed) third party, to transact customs business for that importer of record
Customs Brokers must advise the client on the proper corrective actions required in the case of noncompliance or an error or an omission on the client’s part, and retain a record of their communication with the client.
Cyber Security and Records Requirements:
Customs Brokers must maintain original records, including electronic records, within the U.S. customs territory.

Customs Brokers must notify CBP when there has been a breach of electronic or physical broker records and provide the compromised importer of record numbers.
Regulatory revisions to records confidentiality allows brokers to share client information with third parties when authorized in writing by the client.

Stay tuned for more quality Content.

27/12/2022

Indian Subcontinent

Pricing and Capacity continues to benefit shippers as rates drop and vessel space remains available.

Rates: dropping on most services further continuing the trend that started this past summer.

Space: available on all services. Carriers indicate vessels sailing at ~85% utilization or less on some services.

Capacity/Equipment: Capacity is available, but equipment will continue to remain an issue across the Indian Subcontinent.

Recommendation: Be open to procuring equipment from wet ports vs Inland container depots as equipment deficits are felt in many areas.

12/12/2022

During the heights of the COVID-19 pandemic, a drastic uptick in consumer behavior created a shortage of shipping containers. Now, as the global economy looks towards 2023, the opposite issue has popped up – there are too many shipping containers. Container Depots, the yards in which shipping containers sit after they’ve been emptied, are filling up worldwide if they aren’t already full.
There are many factors as to why this is, but perhaps the largest reason being the significant decrease in consumer demand in the face of inflation and global uncertainty. These signs all point to an impending economic slowdown, as this isn’t expected to be a lull following a post-lockdown consumption frenzy. Rather, it’s another sign pointing towards a downward shift in consumer appetite globally.
The Outlook
“There is just not enough depot space to accommodate all the containers. With the further release of container inventory into the market, for example from the disposal of leasing fleets, there will be added pressure on depots in the coming months,” container logistics expert Christian Roeloffs stated in an industry update several weeks ago. Roeloffs is the chief executive of Container xChange, and online data resource for the shipping industry.
Added pressure on Container Depots is the last thing they need right now. Italian Container Depot owner, Andrea Monti, has told Container xChange his depots are filling fast. “Whatever was coming in and out of, for instance, our Milan depot is quite stuck. And the container volume at the depots is increasing to an extent that we are returning some requests for depot service agreements. We are in a situation where we are not able to accept new clients for some locations.”
Monti went on to say that peak season largely passed his depots by this year, with retailers skeptical of keeping too much inventory on hand. One factor for this is the expedited turnaround time for shipments, which is down significantly from the heights of the pandemic. Companies and retailers alike are now adjusting to this new normal.
The Result
As a direct cause of this consumer behavior, blank sailings are skyrocketing. A blank sail,

07/12/2022

Maersk (Maersk), the Shipping Giant, inaugurated its new Integrated Logistics Park at Port Qasim in Pakistan on 2nd of December. It is a bold decision to invest in an Integrated Logistics Park that would act as a warehouse, including a consolidation & fulfilment centre and cold storage, at Port Qasim. Maersk Pakistan went on from acquiring a 26-acre land parcel to carefully designing and constructing a six-shed facility spread over 560,000 sq. ft. that will answer all the requirements of its customers through a single location.

Pakistan integrated logistics park

This facility will cater to storage requirements of cargo from retail & lifestyle, Fast Moving Consumer Goods (FMCG), automotive and technology sectors. Located within Port Qasim, the Integrated Logistics Park will be the perfect warehouse destination for customers to manage their import and export cargo with the least time delays while connecting to and from vessels.
The Maersk Integrated Logistics Park will come equipped with modern Warehouse Management Systems. With Maersk taking care of the movement of cargo – ocean transportation on one side and landside transportation on the other side of the warehouse – customers will experience lesser handovers of their cargo, leading to higher efficiencies, faster turnaround times, deeper visibility and better control over the cargo movement. All of this will result in better predictability of supply chains.

Source: A.P. Moller – Maersk