Emergency Revenue Charge (ERC)on ocean shipments from Asia to the US!

As part of a revenue recovery plan on the transportation trade, steamship lines have implemented an Emergency Revenue Charge (ERC).  This price hike on shipments is due in large part to off-set the decline in import volumes.  It is uncertain exactly how long this additional fee will be in effective.  As of now, the expected time period is from Jan 15th, 2010 to April 30th, 2010.  Then the already published TSA - General Rate Increase (GRI) program will be activated on May 1st, 2010.

The increase quantum will be as follows:

       +USD 320 per 20’ all types

       +USD 400 per 40’ all types

       +USD 450 per 40’ HC all types

       +USD 505 per 45’ HC all types

“Taking this step now is a milestone in the necessary recovery program expected by all operators on this major East / West trade lane. The implementation of this rate restoration on the Transpacific trade will enable us to maintain an optimal fleet deployment for the benefit of Asian and US exporters and importers ; this is the first stage towards a financial breakeven needed by the liner shipping industry on this route” explains Jean-Philippe Thénoz, Vice President North America Lines, CMA CGM Group.

These price increases are paid by the Third Party Logistic providers, and then that economic burden will likely need to be passed along to the end customer.  If you see this sharp rise in your shipping costs, it is not the “middle guy” making more profit, but rather a need for him to not lose revenue and go out of business.

The brand new “ISF 10 + 2 Rule” and its importance to you!

Is your business directly importing cargo on an ocean container into the United States?  If so, are you adequately prepared to abide by the new safety regulations and avoid the costly fines? 

Or, if you outsource your imports to a third party (“freight forwarder”), are you sure they will meet the criteria of the new rule?  If they don’t, you, the consignee, are the one who is liable for those hefty fines, not the contracted freight forwarder!

Effective on January 26, 2010 any business that imports products and doesn’t strictly follow the new “ISF 10 + 2 Rule” will be faced with a $5,000 fine per violation. 

This brand new rule is the “Importer Security Filing and Additional Carrier Requirements Rule” and is often referred to as the “ISF 10 + 2 Rule”.  This rule is being enforced in an effort to:

• enhance the importer’s sphere of accountability back to the point of stuffing (origin)
• enhance cargo targeting prior to the loading at the foreign port, and
• result in fewer exams for low risk shipments

The responsibility of the ISF importer, or consignee, for the “Importer Security Filing” is to provide the “10″ data elements component of the rule.  The responsibility of the steamship line is to provide the “Additional Carrier Requirements” which corresponds to the “+2″ portion of the rule.

The 10 data elements of the importer or consignee are to provide proof of: seller, buyer, importer, consignee, manufacturer, ship to party, country of origin, harmonized tariff schedule (HTS) number, container stuffing location, and consolidator. The 2 data elements of the steamship line are to produce: the vessel stow plan and the container status messages.

The rule has been a goal of Customs and Border Patrol for many years, as an effort to push supply chain security efforts back from our borders to the point of origin (or “stuffing”). The proposed rule was published back in January of 2008, with the final rule published in November of that same year. The effective date of the rule was this last January, 2009.  The full enforcement of the rule is happening later this month on January 26^th.
Unitrans Worldwide, Inc. employees are experts at this new rule and can conduct this mandatory government filing on your behalf to keep your company in compliance and save you possible hefty fines.

Export Growth Boosts Economic Recovery

Exports surged to the highest level in nearly a year!  This surge of 2.5 percent in exports, allowed the 32.9 billion dollar trade deficit for October to fall by 7.6 percent below the September deficit of 35.7 billion.

The Associated Press today announced that “The U.S. trade deficit unexpectedly narrowed in October” and that “growing exports, boosted by a weaker dollar, are expected to boost demand for American manufactured goods in coming months and provide important strength to the overall economic recovery.”

They report that in the first 10 months of this year, the deficit is at an annual rate of $364.8 billion. That is about half the gap for the whole year in 2008.  The stock market in turn rose after the improved deficit was reported.  In mid-day trading, the Dow Jones industrial average was up about 81 points, for an increase of 0.8 percent.

However to temper that good news, the narrower trade deficit reflects the impact of the recession, which cut consumer demand for domestic and foreign goods.

Donations to Boston Public Health Commission’s Long Island Shelter

Unitrans “warms” hearts by donating approximately 50 wool sweaters to women in need through a local donation to the Boston Public Health Commisson’s Long Island Shelter. Hopefully this holiday season will be made a little happier, and warmer, for those in need through the Long Island Shelter receiving these high quality hand knit European sweaters.

“The Boston Public Health Commission’s Homeless Services Bureau operates two emergency shelters. The Long Island Shelter is a 435 bed emergency shelter located on Long Island in Boston Harbor. Long Island Shelter provides a variety of services designed to assist shelter guests’ move beyond the shelter.” (via Boston Public Health Commission website)

During this holiday season of giving, Unitrans is proud to have made this in-kind donation that will help Boston to provide much needed clothing to the guests of the Long Island Shelter. If you too would like to make an in-kind donation to this shelter, please call 617-534-2526 for more detailed information of how to enrich those guests who are in need.

Goverment Stimulus Loans for Small Businesses

Not Reaching Their Intended Targets!

The government has reacted to the needs of the small business owner to have more capital available to them. They set aside the money for SBA loans and even guaranteed the regular commercial lenders that the funds will be repaid should the borrower default. Yet, the commercial lenders are still using their previous lending criteria as the decision making criteria in issuing those critical loans. The small businesses needing help can’t meet the usual lending criteria, as spare capital is exactly what they don’t have, and that they are looking to obtain!

Where do we go from here? How does a strapped small business access the guaranteed money that is set aside to help them? We need to get the word back to Congress. Our government needs to impress upon the lenders, the need of an updated model of lending criteria that fits the borrower’s tough cash flow conditions for having spare collateral of capital funds in this tough economy!

While we at Unitrans Worldwide, Inc. have been lucky to escape finding ourselves in this difficult “catch 22”, the worry is always there! Being a small business in this market for 30 years, our savvy financial management has helped secure us. Yet a huge part of our success as a small business in this tight economy has been the pure luck to have the timing between the cash flow of our vendors and our customers balance out each month.

US Customs requires importers of record to file ISF 10+2

The 1st ISF 10+2 Rule Essay

Effective January 26 of 2010, importers will be faced with a $5,000 fine per violation if the ISF data is not filed.
This is a brand ocean containerized cargo new rule, called the “Importer Security Filing and Additional Carrier Requirements”, and is being enforced:

• to enhance the importer’s sphere of accountability back to the point of stuffing
• that will in turn enhance cargo targeting prior to the loading at the foreign port
• and ultimately should result in fewer exams for low risk shipments

The responsibility of the ISF importer for the “Importer Security Filing” covers the “10″ data elements component of the rule, and the responsibility of “Additional Carrier Requirements” by the steamship line corresponds to the “+2″ container tracking report portion of the rule. The 10 elements of the importer’s data are: seller, buyer, importer, consignee, manufacturer, ship to party, country of origin, harmonized tariff schedule (HTS) number, container stuffing location, and consolidator. The 2 elements of the steamship’s data are: vessel stow plan and container status messages.

The rule has been a goal of Customs and Border Patrol for many years, as an effort to push supply chain security efforts back from our borders to the point of origin (“stuffing”). The proposed rule was published back in January of 2008, with the final rule published last November of that same year (2008). The effective date of the rule was this past January (2009), and full enforcement of the rule is planned for January 26th, 2010.
Unitrans Worldwide, Inc. can conduct this mandatory government filing on your behalf and keep your company in compliance and save you possible fines.

The 2nd ISF 10+2 Rule Essay

If any data in a container changes while it is in transit between a foreign port and a US port, then according to Customs and Border Protection, the shipper must amend its Importer Security Filings and file them in the Federal Register. Only the party who originally filed the ISF is permitted to update the ISF.

US Customs Announces ISF Rule Change

If data changes while a container is in transit between a foreign port and a US port, the shipper must amend its Importer Security Filings according to Customs and Border Protection and filed in the Federal Register.

Newly Renovated Website Launches!

Our newly renovated website launches!

We hope you enjoy the new look and usability of our updated website.

As always, your input is valuable to us. We welcome your feedback as you become familiar with the new layout.

Helping the Dedham Food Pantry

Unitrans Worldwide provided one of its trucks with a lift gate to facilitate the delivery of school supplies to the Dedham Food Pantry. The school supplies were graciously donated by a large office supply store, however, the delivery required a lift gate for the pickup and delivery. Unitrans Worldwide quickly stepped in to offer its services.

New Faces at Unitrans

Please join us in welcoming the new faces here at Unitrans Worldwide! 

• Donna Manzi joins us as the Director of Marketing & Business Development.
• Tom Stad joins us as the Logistics Manager.

Both Tom and Donna come to Unitrans rich in experience, and are happy to help you in their new roles. We at Unitrans are excited to introduce them both to you.

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