Cargoccino is our bi-monthly post for logistics professionals and importers, delivering bite-sized industry news. Stay informed while enjoying your favorite drink, with updates every 2nd and 4th Tuesday of the month.
OSRA’s New D&D Billing Requirements Go into Effect Today - May 28, 2024
Time's Up!
OSRA lists the minimum information that common carriers must include in a demurrage or detention invoice:
- date that container is made available;
- the port of discharge;
- the container number or numbers;
- for exported shipments, the earliest return date;
- the allowed free time in days;
- the start date of free time;
- the end date of free time;
- the applicable detention or demurrage rule on which the daily rate is based;
- the applicable rate or rates per the applicable rule;
- the total amount due;
- the email, telephone number, or other appropriate contact information for questions or requests for mitigation of fees;
- a statement that the charges are consistent with any of Federal Maritime Commission rules with respect to detention and demurrage; and
- a statement that the common carrier's performance did not cause or contribute to the underlying invoiced charges.
Failure to include the required information on a demurrage or detention invoice eliminates any obligation of the billed party to pay the applicable charge.
Ask for more documentation here.
Peak Season Shifts Westward ☀️
This year's peak season is expected to be a doozy on the West Coast, with a significant surge in cargo volume arriving earlier than usual. What do you need to know for the coming congestion and avoid costly delays?
Here’s an overview of the CNBC Supply Chain Survey*:
Unlike the past two years, a whopping 67% of survey participants expect their peak orders to arrive between May and August, with a concentration in July.
Peak season is shifting: Unlike the past two years, a whopping 67% of survey participants expect their peak orders to arrive between May and August, with a concentration in July.
West Coast congestion: US Customs and Border Officers are already reporting a 40% rise in cargo volume at LA/Long Beach ports.
Rail to the rescue: With East Coast ports congested, expect to see a rise in rail shipments. This is a budget-friendly option, but be prepared for longer transit times.
Planning is key: Shippers who are prepared will win the day. Now is the time to solidify your logistics plans and have backups in place.
Avoid detention & demurrage fees! The congestion will likely lead to a spike in these fees. By implementing proactive strategies, you can streamline your operations and avoid these costly charges. By planning ahead and investing in tech that unlocks freight auditing and monitoring, shippers can set themselves up for success during a weaker holiday season (Q4 & Q1)
*Participants from the National Retail Federation, American Apparel and Footwear Association, United National Consumer Suppliers, C.H. Robinson, OL USA, ITS Logistics, Kuehne+Nagel, DHL, and Uber Freight, a subsidiary of Uber Technologies Inc., took part in CNBC’s survey between April 16 and May 3.
🚀 Rates Skyrocket as Container Crunch Bites
Yikes! Ocean freight rates are soaring again due to a lack of containers.
- Longer routes to avoid the Red Sea, bad weather, and high demand are creating a perfect storm.
- Empty containers are stuck at sea, leading to shortages and pushing prices up.
- This could set a new record for post-pandemic supply chain costs, impacting consumers.
Source: CNBC State of Freight, Lori Ann LaRocco
Bumpy Air Cargo Ride: Asia Pacific Rebounds, But Turbulence Remains ✈️
Air cargo is experiencing some ups and downs, especially in Asia Pacific. Here's the lowdown:
- Asia Pacific shows signs of life: After a dip, air cargo demand in this region bounced back slightly (+8%) in week 19. However, it's not as strong as last year's rebound.
- Global demand a mixed bag: Overall, global tonnages are still higher year-over-year despite holiday disruptions. However, they haven't recovered as quickly as last year.
- Pricing stays steady, but still high: Average rates held at $2.49/kg, which is slightly higher than last year and significantly higher than pre-pandemic levels.
- Regional differences: While Asia Pacific rebounds, other regions like Africa and Europe see declines. The Middle East and South Asia (MESA) show some promise with rising YoY rates.
Source: World ACD ac-admin Homepage
Asia: Shippers Scramble for Scarce Containers 📦
- Surging exports and Red Sea rerouting are creating a "near-perfect storm." Longer travel times are delaying the return of empty containers.
- Shortages are hitting major ports like Ningbo, Dalian, Guangzhou, and even inland hubs like Wuhan and Chongqing.
- Carriers are prioritizing equipment for their biggest customers and long-haul routes, leaving smaller shippers and intra-Asia services struggling.
- The pain is real: Expect priority surcharges, restricted equipment access, and skyrocketing leasing rates.
Some carriers are trying to fight back by ordering new containers, but it will take time to ease the squeeze.
Source: JOC
Catch a Container, 1930s Style
Chicago Shipping Overseas Containers
Vintage Print Ad 1930
☕ What is brewing at BlueCargo? ☕
The Home Furnishings Association (HFA) and BlueCargo are partnering up to empower retailers for the OSRA’s new D&D billing requirements.
Stay tuned for more details.
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