Q2 International Update

Q2 International Update

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3 minute read | By Hollie Starr

Last updated: February 21, 2024 | Published: July 25, 2023

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China Reports show that in May exports from China have seen the first dramatic decline in four months with a reduction of 7.5% year on year hitting a 3-month low of USD 283.5 billion, impacting the 8.5% growth, which was reported in April. Imports to China have shrunk at a slower pace, as factory output continues to slow amid continued weak global demand. These latest figures are worse than the 0.4% decline that the market predicted. China’s major trade partners have also reported declines in exports, the US has seen an 18.2% decline year on year, while exports to the EU reduced by 26.6%. In contrast, to this, Russia has seen an increase of 114%, predominantly in energy. Overall, for the first 5 months of 2023, exports are up by 0.3% compared to the same period in 2022 ____________________________________________________________________________________________________________ Turkey Issues in the southern ports continue, the Iskenderun Port is still not in use and Mersin is still heavily congested. We have been routing shipments from South Turkey via Gebze Port (North), this has a big impact on the pre-carriage cost for the Ex works bookings but due to freight rates being lower, the overall difference is not huge for the importers. Turkey has ongoing financial and economic issues, since the Presidential election took place on 28th May, Turkey is also heading for a currency crisis as well. Turkey experienced a similar crisis in 2018 which caused an export fluctuation. Although Tukey is a producing country, many raw materials are imported. Therefore, a decrease in exports in the coming months seems inevitable. At the beginning of May, equipment and space issues began, but with a new vessel added to the service, delays were resolved before resulting in any backlog. This year the Ramadan holiday in April fell over a weekend and did not affect the services, the Eid Al-Adha holiday also fell over a week at the end of June therefore we had a week of no sailings. If you have any questions about importing and exporting to Turkey please contact our team here. ____________________________________________________________________________________________________________ USA ISF Filing (Importer Security Filing) – Background information U.S. Customs and Border Protection’s (CBP) Security Filing regulation, commonly known as the 10+2 initiative, requires that importers and vessel operating carriers provide additional advance information on non-bulk cargo shipments arriving in the United States by vessel. The regulation requires advance transmission of trade data 24 hours prior to vessel loading. All ISF filings must be made electronically via the Automated Manifest System (AMS) or the Automated Broker Interface. Failure to comply with these regulations may result in the assessment of liquidated damages up to $5,000 per violation, increased inspections, and delay in cargo arrival. CBP can assess these damages on late ISF filings, inaccurate ISF filings, and the first inaccurate ISF update. United States Top 10 Imports

  1. Electrical machinery, equipment: US$477.1 billion (14.1% of total imports)
  2. Machinery including computers: $475.9 billion (14.1%)
  3. Vehicles: $329.6 billion (9.8%)
  4. Mineral fuels including oil: $322.7 billion (9.6%)
  5. Pharmaceuticals: $165 billion (4.9%)
  6. Optical, technical, medical apparatus: $115 billion (3.4%)
  7. Gems, precious metals: $97 billion (2.9%)
  8. Plastics, plastic articles: $89.9 billion (2.7%)
  9. Furniture, bedding, lighting, signs, prefabricated buildings: $86.7 billion (2.6%)
  10. Organic chemicals: $75.9 billion (2.2%)

Labor Disputes & Port Negotiations: Tentative Agreements between the ILWU and the PMA have been reached.  The tentative agreement will last for six years.  This includes Ports of Los Angeles, Long Beach, Seattle-Tacoma, and Oakland. Please contact our US team here if you have any questions regarding importing & exporting to the US. ____________________________________________________________________________________________________________ To download the full copy of your Q2 quarterly review click here.

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