President's Desk Newsletter
Eastern Shipping Worldwide
A better shipping experience. Easy going for you. Easy going for your cargo.
Industry News
Canada’s Government Intervenes to End Port Shutdowns
The Canadian government has ordered major seaports on both coasts to resume operations, moving employer and labor disputes into binding arbitration to end extensive lockouts. The decision, impacting ports in Montreal, Quebec, and Vancouver, addresses the daily $1.3 billion CAD ($934.7 million USD) in goods movement affected by the shutdowns, which threaten supply chains, jobs, and Canada’s reputation as a trading partner. Labor Minister Steven MacKinnon emphasized the national economic risks, particularly as delays in goods like potash, auto parts, and essential items for clean drinking water have already strained the market. While employers support the intervention, unions argue it undermines workers’ rights. Read more
177K drivers at risk of losing commercial vehicle driving privileges as November downgrade deadline looms
The FMCSA's Clearinghouse-II Rule will take effect on November 18, 2024, mandating that all State Driver Licensing Agencies (SDLAs) revoke commercial driving privileges from individuals classified as "Prohibited" due to drug and alcohol violations. This revocation will remain until the affected individuals complete the Return-to-Duty (RTD) process. As of September 1, 2024, 177,092 CDL and CLP holders were listed as "Prohibited," with 134,779 yet to initiate the RTD process. The new ruling was passed to enhance road safety by ensuring that only qualified drivers retain their commercial licenses, and several states have already started implementing downgrades for non-compliant drivers. For guidance on regaining driving privileges, affected individuals can refer to the FMCSA's resources. Read more
Cargo cheers as Canada lifts restrictions on China flights
Canada has lifted restrictions on Chinese airlines, ending limits that capped flights to two per week in 2021 and six in 2022. Before the pandemic, Chinese carriers managed about 66% of the 110 weekly round-trip flights between Canada and China. Following the policy change, Chinese travel site searches for Toronto and Vancouver flights spiked by 110% and 150%, respectively. Air Canada, in response, plans to increase its Vancouver-Shanghai flights from four per week to daily and add daily flights from Vancouver to Beijing by mid-January, all using B787s. The shift may allow Chinese travelers and goods to route through Canada to the U.S., even as the U.S. maintains strict limits on Chinese flights due to geopolitical tensions and lobbying from Airlines for America. Read more
Chicago cargo theft highlights larger challenges for intermodal container moves
The recent theft of cargo from a Union Pacific (UP) train in Chicago highlights the substantial security challenges faced by intermodal container security, particularly during rail interchanges in urban areas. Video footage captured the suspects specifically targeting a few Hub Group containers and rail-owned “EMP” boxes containing electronics, raising suspicions of insider knowledge due to the selective nature of the theft. The train, caught in an interchange between UP and Norfolk Southern Railway, was reportedly stationary in a residential area—an unusual circumstance for secure interchanges. While six individuals were detained, only two face misdemeanor charges, reflecting broader law enforcement limitations on addressing cargo theft. Memphis police also highlighted similar security concerns, noting that intermodal trains can remain stationary for extended periods in unsafe locations. Additionally, the lack of severe legal repercussions for cargo theft, particularly outside foreign trade zones, complicates efforts to deter such crimes. Authorities emphasize the need for more comprehensive federal prosecution strategies to address the economic impact of these thefts effectively. Read more
Customs Brokerage News
USTR Announces Delay in Section 301 Modifications
The U.S. Trade Representative (USTR) has reopened the Section 301 exclusion process for certain Chinese machinery classified under Harmonized Tariff Schedule Chapters 84 and 85, which are used in U.S. manufacturing. Companies can apply for duty exclusions by providing detailed equipment descriptions, including HTS codes, use cases, alternate sourcing options, and any connection to U.S. federal investment programs or China’s “Made in China 2025” initiative. The comment period, open until March 31, 2025, includes a 30-day response window and an additional 15 days for replies if objections are raised. Exclusions granted will be effective through May 31, 2025, potentially offering significant duty relief as Section 301 tariffs reach up to 25%. Read more
USITC Rules No Harm from Aluminum Extrusion Imports; Refunds Set for AD/CVD Deposits
The U.S. International Trade Commission (USITC) recently determined that imports of aluminum extrusions from 14 countries—China, Colombia, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, South Korea, Taiwan, Thailand, Turkey, the United Arab Emirates, and Vietnam—do not materially injure or threaten the US domestic industry. As a result, proposed antidumping and countervailing duty (AD/CVD) orders on these imports will be rescinded, and previously collected cash deposits will be refunded. However, existing AD/CVD orders on aluminum extrusions from China, imposed in 2011, will remain in effect, and importers continue to be required to deposit AD/CVD on entries subject to these orders. Read more
Lacey Act Declaration Required Dec. 1, 2024
The Lacey Act, a foundational U.S. law combating illegal trafficking of wildlife, plants, and wood products, mandates that importers file a declaration (Form PPQ 505) for certain plant-based products. Phase VII of this requirement, effective December 1, 2024, expands to include all wood and plant-based items not made of composite materials, such as furniture, cork, and specific essential oils. Importers must verify the genus and species, country of harvest, and legal compliance of each wood product before import. Customs brokers may request this information, and accurate, timely documentation is essential to avoid substantial penalties, including fines, asset forfeiture, or imprisonment. APHIS resources and training can support importers in navigating these requirements. Read more
Eastern News
Strides of Hope as Eastern Joins the Fight Against Breast Cancer
Eastern proudly joined the American Cancer Society’s Making Strides Against Breast Cancer walk on October 26, 2024, in Naples, Florida. Joining as part of the team “Pink DIVAS FIGHTING for a CURE!,” Eastern’s Catherine Wagner, Mayra Tang, Estefany Ortiz, Oriana Suarez and Carla Ramirez walked alongside other dedicated team members, collectively raising $1,871.80 and ranking 17th among 121 teams. Proceeds from the Pink DIVAS support vital American Cancer Society services, including transportation assistance, temporary lodging near treatment facilities, and a 24/7 helpline for patients and families. Their efforts reflect a shared commitment to advancing cancer research and patient support. Read more