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

Not surprisingly, the December 31, 2015 deadline for freight railroads to install Positive Train Control (PTC) technology on 40 percent of its network, as per a mandate from the Federal Railroad Administration will not be met. That was the chief takeaway of a report from the Association of American Railroads.

When the Warehousing Education and Research Council (WERC) convenes for its annual conference in Chicago next week, they’ll be visiting the nation’s largest inland port.

The newly created and expanded alliances of P3 and G6 will certainly review and revise port calls, but the shift in initial deployments will be subtle, says Neil Davidson, senior analyst of ports and terminals for Drewry Research.

“U.S. Port Update: Investing in the Future” will feature a panel of three industry leaders from the East Coast, Gulf, and West Coast discussing their relative challenges and opportunities.

Zebra gains instant access to complimentary technologies. But first, it needs to integrate a former partner that is 2-1/2 times its size.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA