Subscribe to our free, weekly email newsletter!


U.S. ag shippers concerned about EU export barriers

In a memo obtained by LM, the AgTC informs shippers that the EU’s trade data rules have been in effect for nearly three months, requiring that the ENS be submitted by the ocean carrier 24 hours before cargo is loaded for an EU destination.
By Patrick Burnson, Executive Editor
February 24, 2011

The Agriculture Transportation Coalition (AgTC) is asking its members to share information on ocean carrier practice regarding Entry Summary Declaration (ENS).

In a memo obtained by LM, the AgTC informs shippers that the EU’s trade data rules have been in effect for nearly three months, requiring that the ENS be submitted by the ocean carrier 24 hours before cargo is loaded for an EU destination.

This applies to any cargo on a ship that stops at an EU port, whether off-loaded there, or merely continuing to a further destination.

To comply with this rule, carriers need complete and accurate shipping instructions from the shipper in sufficient time to be able to submit the EU’s 24 hour deadline.  The amount of lead time varies by carrier, but appears to range from 2 to 4 days.  According to the memo, “this is creating real difficulties for ag exporters.”

One question is whether or not the EU countries are actually requiring this information yet, the AgTC stated.

“Our members are reporting that this advance documentation can cause severe difficulties for agriculture shipments, as often the details such as container number and seal are not available to the shipper by the carrier cut-off,” the memo said. “A shipper’s inability to get the data to a carrier by the cut off has lead to carriers rolling cargo, demurrage fees, late shipments to customers, and some lost sales if out of compliance with a letter of credit.”

The memo includes an account recalled by one shipper sounding a plea of desperation:

“Depending on the carrier, they are charging $24 - $50 for initial filing and then $50 for changes, but this is not the real problem. They are rolling our shipments and then charging crane fees and demurrage, which has amounted to $10 - $20,000. We have so far been able to get these waived but I am not sure how much longer they will continue to do so.”

To just what extent this has been discouraging U.S. ag exports has yet to be determined, but the shipper who shared this information, told LM it is a legitimate concern.

For more on ocean freight click here.

 

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Earlier today, the United States Senate signed off on a six-year surface transportation authorization, according to various media reports. The bill, entitled the Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act, passed by a 65-34 margin and comes at a time, when the most recent extension for surface transportation funding expires tomorrow, July 31.

Demand for the $500 million in available funding for the United States Department of Transportation’s TIGER (Transportation Investment Generating Economic Recovery) competitive grant program was easily trumped, with applications for the seventh round of TIGER grants coming in at $9.8 billion, or nearly twenty times the available amount, DOT said this week.

Global logistics managers will be tracking the progress of the controversial Trans-Pacific Partnership (TPP) talks in Maui, Hawaii this week, as negotiating parties hope to finalize the agreement.

As has been noted in recent coverage on this site in regards to Peak Season, one underlying theme has been, and remains, how Peak Season is not what it used to be. That is not to say there will not be any Peak Season-related activity. Make no mistake, there will be and things driving it from the seasonal nature of business activity and cargo flows to higher demand and increased e-commerce activity, among others.

UPS Access Point locations serve as a replacement delivery address when consumers are not at home to receive a package or when consumers want a delivery to go somewhere other than their residence.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA