525 S. Douglas St. , #100• El Segundo, CA 90245 • (310) 607-8000
It seems like every day there are new records being broken on congestion by the number of ships waiting at anchor in San Pedro Bay; the number of days it takes for a container to move, door-to-door from China to the U.S.; and the cost of a container to make the trip. As we move closer to the holiday shopping season, cargo concerns are growing for retailers who want to have inventory on shelves before Black Friday. The best time to solidify your holiday plans was a month ago, but if you find yourself in a last-minute scramble, you need Coppersmith by your side to help you stay ahead of the disruption. 
Truck prices soar as capacity and drivers vanish
Rate hikes on ocean cargo aren’t the only pinch that forwarders are feeling this month; trucking rates are steadily climbing. Between capacity issues and a lack of drivers, the explosion of e-commerce during the pandemic is painfully straining an already stretched market. Disruption in the ocean market has unfurled to impact the rail, air, and truck sectors as shippers work frantically to secure rates, space, and service as capacity tightens. 
Lacey Act Phase VI implementation on Oct. 1st
The Lacey Act is the United States' oldest wildlife protection statute. The Act combats trafficking in illegally taken wildlife, fish, or plants. The U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) announced the implementation of Phase Six of the Lacey Act enforcement schedule will begin on October 1, 2021. Phase Six will require a plant import declaration for additional products such as essential oils and wooden pallets that are imported into the United States. The list of products included can be found here.
NEWS FROM COPPERSMITH
COPPERSMITH MONETARY POLICY UPDATE
Due to the increasing strain on the international shipping industry, pushing costs up more than fivefold in the past year, Coppersmith has had to revisit our monetary policy with customers. Coppersmith Inc. is a Customs Broker, yet we have become the banking middleman asked to advance charges for services which are not our responsibility and can easily be paid by customers directly to the vendors whom they have chosen.  

In the past, we have outlaid duty, freight, storage, and demurrage charges to expedite the clearance and release process. However today, these advanced payments are no longer industry standard, since payment of these services is available to the importer via online portals and ACH duty payments. 

Therefore, we are asking that each customer pay their service fees directly to the vendor who provides the service. If Coppersmith provides the freight routing, insurance, clearance, and delivery, then we will certainly advance those fees and charge you accordingly. But, shipping costs, terminal fees, chassis rentals, and demurrage/detention costs are all the responsibility of the cargo owner and should be paid directly to the vendor or they will be assessed an advance fee for this special service.

Customs duties should always be paid directly to CBP on your own ACH account—ask us for an application.

As we advised in our August Newsletter, we too have moved to electronic payments of our invoices. Please ask your Coppersmith representative for our bank information to pay us via ACH.
 
Having our customers take care of their own monetary responsibilities, enables us to concentrate on providing the best customer service in the industry.
Expanding power outages in China have caused factories and manufacturers to shut down as coal supplies dwindle, emissions standards tighten and out-of-control demand put incredible strain on the nation. The Chinese power company State Grid Co. has promised that they can ensure basic power supply maintenance and but power rations have been in effect for about a week as many stores find themselves working by candlelight or closing early to either conserve energy or shut down because they don't have power.
The Port of La's Clean Truck Program requires concessions by October 1, 2021, and drivers will be turned away unless Clean Truck Concession Agreements are submitted by midnight on September 30, 2021. The Concession Program establishes a contractual relationship between the Port and Licensed Motor Carriers (LMCs) providing drayage services. All LMCs making regular calls at POLA cargo terminals are required to have an approved POLA concession agreement.  

California cargo delays are piling up as the port, truckers and warehouses work to figure out how to mitigate the issues. Ideas from working 24/7 to catch up all the way to finding more employees have come up dry as the hours haven't been extended and hiring hasn't nearly kept up with demand. Many retailers are concerned they won't be able to recover their cargo in time to see it on holiday store shelves unless something drastic happens to clear out the backlog and keep up the pace.
The government is pending a shutdown on Friday, October 1, 2021 if they cannot come up with a reasonable way to raise the debt ceiling through congress. If we do experience a shutdown it is important to remember that TSA and other enforcement agencies will keep working but delays can start to mount from other agencies being shut down like the Environmental Protection Agency and Treasury. Though it looks positive, we won't know until Friday.
The congestion on the west coast has seemingly broken through to main stream news as more outlets give their hot takes on supply chain issues and capacity crunches that keep their favorite products missing from store shelves. This week, The Conversation does a deeper dive into the supply chain issues currently plaguing shippers, paying special attention to the equipment imbalances, capacity fluctuations and how the size of ships has grown to epic proportions.