Client Center > Market Announcements 2005

BAF Increase from Med to USA East Bound Traffic

BAF INCREASE ANNOUNCEMENT

**** U.S.A. EAST COAST BOUND SHIPMENTS OUT OF MEDITERRANEAN ****

Dear Valued Customers

According to the latest info we received from the steamship lines, pls be informed about below mentioned latest changes about the BAF (Bunker Adjustment Factor) implementation for all shipment from Mediterranean traffic to USA East Coast bound shipments Effective 11/1/2005;

Baf will be increased to 401 usd from 321 usd per 20” container and to 802 usd per container from 642 usd per 40’ containers.

BAF INCREASE WILL BE;

USD 80 / 20 DC

USD 160 / 40’ DC & HC

FOLLOWING STEAMSHIPLINES WILL BE APPLYING THIS INCREASE TO THEIR RATES;

TURKON, HAPAG LLOYD, P & O NEDLLOYD, MAERSK SEALAND, CHINA SHIPPING, APL

We would like to also inform you that our rates will be affected by this increase application

Publish Date : 10/7/2005 12:10:00 PM   Source : Various Lines

Op Procedures Regarding WPM Reg Implementation

Operating Procedures for Trade Community Regarding Implementation of the

Wood Packaging Materials (WPM) Regulation

Background:

The United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) has revised its import regulation for wood packaging materials (WPM), 7 CFR § 319.  The final rule was posted in the Federal Register September 16, 2004, with an effective date of September 16, 2005.

The regulation requires regulated WPM used in international trade to be treated to kill harmful insects that may be present.  WPM must be marked with the International Plant Protection Convention (IPPC) logo, the two-letter International Organization for Standardization (ISO) code for the country that treated the WPM, the treatment facility number assigned by the national plant protection organization, and either the abbreviation HT (heat treatment) or MB (methyl bromide).  The rule states that regulated wood packaging materials must be marked in a visible location on each article, preferably on at least two opposite sides of the article, with a legible and permanent mark that indicates that the article meets the new requirements.   Paper treatment certificates will no longer be required or accepted.  An example of an acceptable WPM mark is:

The regulation restricts the importation of many types of wood articles, including wooden packaging materials such as pallets, crates, boxes, and pieces of wood used to support or brace cargo.  The regulations currently refer to these types of wood packaging materials as solid wood packing materials, defined as ‘‘wood packing material other than loose wood packing material, used or for use with cargo to prevent damage, including, but not limited to, dunnage, crating, pallets, packing blocks, drums, cases, and skids.’’  Effective September 16, 2005, the U.S. regulation allows non-compliant regulated WPM to be re-exported.  CBP recognizes that the usage of this term may be confusing.  For purposes of CBP implementation of the USDA regulation, “re-export” will refer to the immediate export of violative WPM and, where the violative WPM cannot be separated from the accompanying merchandise, the immediate export of the violative WPM and any accompanying merchandise.  By regulation, no treatment options for WPM being imported into the United States are available.

For the purposes of this rule, WPM imported as cargo, such as a container or truckload of new or unused pallets, will still be considered WPM and subject to the rule.  Its status as merchandise is irrelevant.

Non-regulated and Exempt Wood and Wood Products:

Regulated WPM do not include any manufactured items, such as worked wood items, even if those items are used to contain other non-regulated merchandise.  Examples of such non-regulated manufactured items might include such things as carved or formed wooden bottle stoppers, ammo crates, wooden boxes built to house fuel gauges or armaments, etc.  Wine crates for any vintage year prior to 2006, are also non-regulated; wine crates for vintage year 2006 and beyond are regulated. 

Regulated WPM do not include any manufactured wood, such as fiberboard, plywood, polywood, whisky and wine barrels, strand board, and veneers, nor do they include “loose wood packing materials” as defined in 7 CFR § 319.40-1.  Examples of loose wood packing materials include excelsior (wood wool), sawdust, and wood shavings, produced as a result of sawing or shaving wood into small, slender, and curved pieces.  Dunnage is not always loose wood packing materials; when it is not, it is regulated.

The regulation allows importation without marking of otherwise-regulated WPM used by the U.S. Department of Defense to package non-regulated articles, including commercial shipments pursuant to a DOD contract. 

By reciprocal regulations, WPM made from Canadian origin wood or U.S. origin wood (or a combination of Canadian origin wood and U.S. origin wood) will be exempt from treatment and marking under this regulation when used in trade between these two countries.  For purposes of enforcement of this exception, and absent acceptable proof to the contrary, U.S. Customs and Border Protection (CBP) will consider the country of origin of merchandise coming from Canada to be the country of origin of the accompanying WPM. 

The only remaining exemption for imports from Mexico permits importation of unmarked firewood, mesquite wood for cooking, and small, noncommercial packages of un-manufactured wood for personal cooking or personal medicinal purposes as long as these items arrive directly from Mexican Border States.

Phased Compliance:

CBP conducted a special operation during the month of July 2005 to determine the baseline level of WPM compliance.  Based on examination results, CBP will perform phased-in compliance enforcement of the USDA WPM regulation.

Phase I, beginning September 16, 2005, will be an informed compliance period, with no stoppage or reexport of shipments for non-compliant WPM.  During this phase, all visual exams of cargo performed by CBP Officers or Agriculture Specialists will include a WPM component.  If WPM are present and are not marked as having been treated, the broker and the importer will be informed of the non-compliance and given further information.  (See “Sample Notice of Violation”, attached)

Phase II, beginning February 1, 2006, will continue informed compliance measures on all regulated WPM except pallets and crates.  CBP will begin full enforcement of the ban on violative pallets and crates.  Beginning with Phase II, reexport of all shipments containing violative pallets or crates will be ordered if the Port Director determines that it is not feasible to separate merchandise from the violative WPM.  IT and T&E shipments found to contain violative WPM will not be permitted to transit.  All expenses incurred for the services of CBP Officers and Agriculture Specialists involved in the separation of cargo will be billed to the importer or other party of interest.  WPM and associated merchandise will be exported at the expense of the importer or other party of interest. 

Phase III, beginning July 5, 2006, will represent full enforcement of the WPM ban regulated by 7 CFR § 319.  CBP will no longer conduct informed compliance at the shipment level.  In Phase III, re-export of all shipments containing violative WPM will be ordered if the Port Director determines that it is not feasible to separate merchandise from the violative WPM.  IT and T&E shipments found to contain violative WPM will not be permitted to transit.  All expenses incurred for the services of CBP Officers and Agriculture Specialists involved in the separation of cargo will be billed to the importer or other party of interest.  WPM and associated merchandise will be exported at the expense of the importer of other party of interest.

Phase I

Informed Compliance

September 16, 2005 through January 31, 2006

 1.      Phase I of the WPM implementation will consist of an informed compliance initiative relative to CBP efforts to implement and enforce the WPM rule.

 2.      During Phase I, if CBP discovers WPM that are not properly marked (that is, lacking the proper IPPC logo) during the course of any visual examination of any cargo, a Notice of Violation will be posted in a prominent location on the goods.  A copy will also be included in the entry packet where possible.  The intent of these steps is to notify the broker and the recipient that a violation has occurred and that CBP has chosen to temporarily exercise its enforcement discretion.  These discoveries are considered violations of the WPM rule.

 3.      The enforcement of WPM requirements is a separate process from the normal course of pest interdiction duties conducted by CBP Agriculture Specialists.  In every case of the discovery of a pest infestation, the protocol associated with safeguarding or eradication of the pest threat will supersede WPM enforcement.  Once a pest threat has been eliminated, the WPM enforcement will be applied.

 4.      National and port account managers will work with their accounts to answer questions and encourage compliance with the regulation.

Phase II

Wooden Pallets and Crates

February 1 through July 4, 2006

 1.      Phase II continues informed compliance efforts started in Phase I.  However, enforcement of the rule will begin to impact cargo shipments that have non-compliant wooden pallets or crates.

 The term “pallets”, when used in this document, will include single wooden pallets and all pallets that are part of a unitized packaging container, such as wooden pallets that comprise the base of a carton or crate (for example, in shipments of motorcycles, machinery parts, pipe fittings, etc.)  Wooden crates or lift vans constructed solely of manufactured wood (for example, plywood) are not regulated by the WPM rule.  However, if other lumber is used in these crates, those pieces are covered by the WPM rule.  (See also “WPM--Specific Exemptions”, attached)

 2.      During Phase II, if CBP discovers WPM (other than pallets or crates) that are not properly marked (that is, lacking the proper IPPC logo) during the course of any visual examination of any cargo, a Notice of Violation will be posted in a prominent location on the goods.  A copy will also be included in the entry packet where possible.  The intent of these steps is to notify the broker and the recipient that a violation has occurred and that CBP has chosen to temporarily exercise its enforcement discretion.  These discoveries are considered violations of the WPM rule. 

Shipments Containing Non-Compliant Wood Pallets or Crates

1. The shipment will be held and will not be released.  IT and T&E shipments found to contain violative WPM will not be permitted to transit. 

2. The Agriculture Specialist will complete a USDA Emergency Action (EAN) Notification (PPQ-523) on the violative materials.  The Agriculture Specialist will follow the general guidelines for completing actions under the EAN procedures.

3. The importer, or the importer’s representative (if one is available), will be notified by CBP of the situation.

d.      The importer or other party of interest may request separation of the imported merchandise from the violative WPM. 

 3.      If the Port Director determines that separation of the non-compliant crates from the cargo is not feasible, or if separation is not requested, then the entire shipment (violative WPM, compliant WPM, and merchandise) shall be ordered exported from the U.S. in accordance with the rule.

1. The Port Director shall order the shipment to be exported from the U.S. at the importers’ or party of interest’s expense.  It is irrelevant if the shipment contains a mixture of compliant and violative WPM.

2. The authority to order exportation of violative WPM is contained in the USDA regulations at 7 CFR § 319.40.

3. If the entire shipment is ordered exported, any original entry must be cancelled and an Immediate Exportation entry (entry type 63) must be executed and provided to the Port Director to document the export movement.

4. If movement outside of the original U.S. port becomes necessary to cause the ordered exportation, it will be on a restrictive Transportation and Exportation entry (entry type 62) in conjunction with an appropriately executed USDA Emergency Action Notification (EAN) (PPQ-523).  The EAN will provide and document restrictions as to routing, diversion and authorized timeframe to complete the restricted transportation and exportation movement.

5. In the event that the identity of the importer is unknown or otherwise not available to CBP, the importing carrier may be held liable for expenses related to the costs of exportation of the non-compliant WPM and associated cargo.

6. In the event that the merchandise is abandoned, the shipment will go to General Order (G.O.) and be handled under established procedures.  If G.O. merchandise is ultimately auctioned, all noncompliant WPM must be exported at the expense of the successful bidder.

 4.      If the Port Director determines that separation of the violative WPM from the cargo is feasible, then the cargo will be separated at the importer’s expense at a time and place determined by the Port Director. 

a.      After separation, the Port Director will order violative WPM to be exported per 7 CFR § 319.40 at the importers’ or party of interest’s expense.

b.      If only the violative WPM is to be exported, the importer or party of interest (working in conjunction with the exporting carrier) must supply evidence sufficient to Port Director’s satisfaction that the non-compliant WPM will be removed from the U.S.  This proof may include, but is not limited to, a bill of lading, statement on carrier letterhead, U.S. export or foreign entry documents, etc.

c.      In the event that the identity of the importer is unknown or otherwise not available to CBP, the importing carrier may be held liable for expenses related to the costs of exportation of the non-compliant WPM.

Publish Date : 9/15/2005 2:01:00 PM   Source : http://www.aphis.usda.gov

B.A.F. Increase for Med to US Bound Traffic

BAF INCREASE ANNOUNCEMENT

Dear Valued Customers

According to the latest info we received from the steamship lines, pls be informed about below mentioned latest changes about the BAf implementation for all shipment from Med to USA Effective 9/1/2005;

Baf will be increased to 323 usd from 260 usd per 20” container and to 646 usd per container from 520 usd per 40’ containers.

BAF INCREASE WILL BE;

USD 63 / 20 DC

USD 126 / 40’ DC & HC

We would like to also inform you that our rates will be affected by this increase application

Publish Date : 8/21/2005 9:31:00 AM   Source : Various Steamshiplines

USA Starts Implementation of WPM Regulation

Implementation of the Wood Packaging Material (WPM) Regulation.

Background:

APHIS revised the import regulations for WPM to be consistent with the International Plant Protection Convention standard ISPM #15. The-regulation restricts the importation of many types of wooden packaging materials such as pallets, crates, boxes, and dunnage. The revised WPM regUlation is effective September 16, 2005. The regulation requires WPM in use in international trade to be treated. The approved treatments are;

1) Heat treatment to a minimum wood core temperature of 56°C for a minimum of 30 minutes or

2) Fumigation with methyl bromide. The term ‘solid wood packing material’ used in previous USDA import regulations has been changed to ‘wood packaging material’ to be consistent with ISPM #15.

WPM must be marked with the IPPC logo and the two letter ISO code for the country that treated the WPM. The marking must also include the unique number assigned by the national plant protection organization to the company responsible for ensuring the WPM was properly treated, and either the abbreviation HT (heat treatment) or MB (methyl bromide). Paper certification (treatment certificates) will not be required.

Example of the WPM mark:

XX represents the ISO country code.

000 represents the unique number assigned by the national plant protection organization.

YY epresents either HT for heat treatment or MB for methyl bromide fumigation.

Exemptions:

WPM made entirely of manufactured wood material (e.g. particle board, plywood, oriented strand board) and wine and whiskey barrels, or WPM made entirely of thin pieces of wood, (6mm thickness or less) is exempted from the treatment and marking requirements. WPM made of Canadian origin wood is also exempted from the treatment/marking requirements (7CFR 319.40-3).. Since determining wood origin will be very difficult and Canada is implementing ISPM #15 requirements, WPM arriving from Canada will be allowed to enter the u.S. without the IPPC mark. WPM from Canada will be inspected for pests.

Implementation Phases:

First Year of Implementation (From Present – September 15,2005)

The revised WPM regulation is effective September 16, 2005. During the 1 year implementation phase, WPM may be imported if in compliance with either current import requirements or the international standard for WPM (ISPM#15).

A. Shipments imported from China or Hong Kong must:

• Be accompanied by an exporter's statement in the commercial invoice, bill of lading, or other similar document (including a paper or electronic manifest) stating that the shipment contains no WPM, or
• Be accompanied by a certificate signed by an official of the Chinese government or an approved Hong Kong fumigator stating that the wood was heat treated to a minimum of 7l.l° C for 75 minutes or treated with T404 (methyl bromide or kiln dried) or its equivalent, or
• Have treated and marked WPM in compliance with ISPM #15.

WPM not in compliance with the above requirements must be destroyed or re-exported

B. WPM imported from all countries other than China or Hong Kong must be:

1. Free of bark, or
2. Accompanied with documentation stating the WPM was treated with T404 (methyl bromide or kiln dried) or its equivalent, or heated to a minimum of 71.1°C for 75 minutes, or
3. Treated and marked in compliance with ISPM #15.  

WPM not in compliance with the above requirements must be treated, destroyed or reexported.

Full Implementation-Importations after September 15. 2005

All WPM must be treated and marked in accordance with the regulation 7CFR 319.40-3(b), excluding WPM exempted by the regulation. WPM imported after September 15, 2005 without the IPPC mark must be reexported. Treatment or destruction will not be permitted. Unmarked WPM may be separated from the commodity being imported, if the inspector determines separation can be done without pest escape. A user fee will be assessed for supervising the separation of the WPM from the cargo. Treatment will be allowed if hitchhiking (non-wood) pests are intercepted with IPPC marked WPM.

More information on this subject can be accessed from http://www.aphis.usda.gov/.

Publish Date : 6/28/2005 6:21:00 PM   Source : Animal and Plant Health Inspection Service

Changes regarding Free Time at Long Beach

Long Beach on July 1 will reduce the time shippers can store their containers on the docks before a storage fee, known as demurrage, is charged. Free time on imported containers will be reduced to four days from five days at present. Free time for export containers will be reduced to six days from seven at present. Also, free time will be calculated beginning at midnight on the day that a container is unloaded from the vessel. At present, free time does not begin until the entire vessel is unloaded. If Customs and Border Protection orders a container examined for security purposes, and it takes several days to stage the container and perform the exam, calculation of free time will begin when Customs completes the exam and releases the container. Long Beach is not the first port to cut free time in order to reduce congestion at marine terminals. New York-New Jersey, Vancouver, Canada, and the Port of Los Angeles have approved similar measures. However, Long Beach will go a step further by requiring that marine terminals keep a log of their storage and demurrage practices and file the information with the port, which will audit the terminals' practices. Any terminal that flagrantly violates the port tariff will pay a fine of twice the lost revenue, plus $100, plus the cost incurred by the port to audit the terminal.

Publish Date : 6/28/2005 6:20:00 PM   Source : Journal of Commerce

PIERPASS Set to Launch on July 23rd 2005

PierPASS Inc. announced that OffPeak, the new program to reduce congestion at the Port of Los Angeles and Port of Long Beach, will begin on Saturday, July 23, 2005. PierPASS also confirmed OffPeak's night and weekend hours of operation and announced an accelerated rollout of the program, establishing five full-service shifts during the first week of operation.

Marine terminal operators at the Los Angeles and Long Beach ports created PierPASS in 2004 in response to community and industry requests to address congestion and air quality issues in and around the ports. By providing a financial incentive for cargo operations on nights and weekends, OffPeak aims to reduce daytime truck trips and improve air quality.

The OffPeak shifts will be Monday through Thursday from 6:00 p.m. to 3:00 a.m. and Saturday from 8:00 a.m. to 6:00 p.m. The first OffPeak shift will be Saturday, July 23. Beginning on Monday, July 25, PierPASS will assess a "Traffic Mitigation Fee" on all loaded containers entering or exiting marine terminal gates by road during peak daytime hours (Monday through Friday, 3:00 a.m. to 6:00 p.m.). The fee has been set at $40 per TEU (20-foot equivalent unit), or $80 for a 40-foot container.

Registration Required for Payment
After July 23, the Traffic Mitigation Fee will be required for cargo movement through the ports during peak hours. Only registered users will be able to pay this fee. Users of the ports (such as cargo owners, brokers, truckers and logistics companies) can register for OffPeak through the registration site at www.pierpass-tmf.org

About PierPASS
PierPASS is a not-for-profit company created by marine terminal operators to reduce congestion and improve air quality in and around the Los Angeles and Long Beach ports. For more information, please go to www.pierpass.org.

As your service provider MTS Logistics, Inc will register for PierPASS. However PierPASS fees will not collected by MTS Logistics, Inc. The fee is payable directly through http://www.pierpass.org  and users must be registered to make payments.

For more information and upcoming news on the subject, please visit PIERPASS website at http://www.pierpass.org.

For frequently asked questions on this subject please visit http://www.pierpass.org/resources/faq/.

Publish Date : 6/13/2005 5:32:00 PM   Source : http://www.pierpass.org

Peak Season Surcharge Starts on June 15th 2005

Dear Customers,

Peak Season Surcharge (PSS) being applied from Asia for Inbound shipments  will start on June 15th 2005.

The actual charges will be different from line to line. Charges can be anywhere between 200 usd to 450 usd per 40 foot container. Since this is not a source of revenue for MTS Logistics, Inc., these costs will be passed on from the carriers.

For exact amounts line by line please contact us or follow-up our news section and announcements.

Should you have any questions concerning this increase please feel free to contact us.

Publish Date : 6/13/2005 5:30:00 PM   Source : Various Market Announcements

Turkon Lines Free Time Announcement at US Ports

Dear Customers,

Turkon Lines have recently reduced the free time applied at US ports for Inbound shipments and changed their demurrage tariffs.

Below, you will find the updated information about free time and demurrage rates at US ports, for IMPORTS.

Free time and Demurrage at US Ports:

 IMPORTS (Turkey/USA Agmt)

 New York:

4 days free (excl. Sat/Sun/Hol)

$40/day for next 5 days

$74/day thereafter

 All other ports:

5 days free as above

$20/day for next 5 days

$37/day thereafter

 Multiple containers (9 or more, one ship, one consignee):

New York:                                          All Other Ports

9-10 container 5 days                         6 days

11-12 containers 6 days                    7 days

13-14 containers 7 days                    8 days

15-16 containers 8 days                    9 days

over 16 containers 9 days                 10 days

 Tobacco:

10 containers: 21 calendar days free

Should you have any questions concerning this issue please contact us.

Publish Date : 6/13/2005 5:25:00 PM   Source : Turkon Lines

Turkon Lines applies G.R.I. for Export Shipments

As per Turkon Lines; Eastbound General Rate Increase filing today,  all service contracts and tariff rates in place for all origins and destinations will go up by;

$75  per 20'
$125 per 40'Std.
$175 per 40'HC effective July-1, 2005.

All rates from US to Turkey, Israel and Egypt will be subj. to a rate increase.
The rate increases become effective 07/01/2005. This will affect all shipments starting with LEYLA KALKAVAN VOY.1505 sailing from the port of New York on
or after July-8, 2005 and all later vessels.

Please note that this only applies to export shipments out of US to Eastbound traffic.

Publish Date : 6/1/2005 4:55:00 PM   Source : Turkon Lines

Turkon Lines change port of discharge;

Publish Date : 5/23/2005 5:24:00 PM   Source : MTS Logistics, Inc.

If you want our sales represantative to contact you please Email us sales@mtsnyc.com