AD/CVD: Why You Should Pay Attention

AD/CVD is shorthand for “Anti-Dumping and CounterVailing Duties”. It’s a big, complex, and sometimes overwhelming topic. Fortunately, there’s a handy guidebook you can download in pdf format, that makes great reading! Check out our Helpful Links page for this and other cool resources.

In a nutshell: foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD (aka anti-dumping) duties. With renewed focus on enforcement of U.S. trade law, the current administration has initiated administrative reviews of numerous antidumping and countervailing duty orders and findings. That means that things could change because the administrative reviewer might determine that current conditions warrant a different outcome than what may have existed in the past.

The use of anti-dumping cases as a tool to get parity in duty rates from other countries is not a new development. However, the sheer number of such cases and penalties have increased significantly. This can mean duty of 146% on top of the normal duty, so the business impact on importers can be really significant. To avoid surprises, importers need to remain informed and attentive to what is happening with AD/CVD cases. ACM Logistics & Consulting can assist you in understanding how your business may be impacted.

Melon Season 2016 Escapes Damage of Hurricane Otto

At ACM Logistics & Consulting Inc, we have our hand on the pulse of any factor that could influence the shipping and quality of products our clients trust us to transport. That means we’re on the lookout not only for immediate threats but issues that could lead to problems as time passes. That’s where Hurricane Otto came in, and we were interested to see how this natural disaster might impact certain crops and products coming from Central America to the United States.

Hurricane Otto: The Basics  

Hurricane Otto was a very rare storm. It began as a low pressure cell in The Gulf of Mexico, grew to hurricane strength and eventually made landfall in on the southern Nicaraguan Atlantic coast. Crossing west, it entered northwest Costa Rica and the out into the Pacific Ocean.  The Guanacaste region or Costa Rica is home many ‘fincas’ farms that supply the United States and Europe with melons. The fear was that Hurricane Otto could threaten their melon harvest that begins next month. 

Melon Season: Risks Ahead? 

Melon season, which runs from January to May, was at particular risk as Hurricane Otto hit Costa Rica. Farmers grew increasingly concerned, but despite the risks, the hurricane did not affect the melon crops in the area. Thankfully, recovery from the hurricane will be possible, and the season will likely continue as usual. 

How We Learn from Hurricane Otto  

ACM Logistics & Consulting Inc uses real-time information to keep its clients in the know when it comes to their shipped materials.

Good communication up and down the supply chain between transit providers and clients has always helped establish expectations based on the reality of natural disasters, and this continues to be true.

Even though Hurricane Otto did not affect melon crops, we can still learn from its threat. Continued monitoring of the weather will happen, and excellent communication will be a top priority. If these two factors continue, ACM Logistics will be prepared for any other threats to crops we transport.

Hurricane Otto did not, after all, affect the melon season this year. But that doesn’t mean other crops won’t be affected by weather eventually. As you keep track of the weather that could impact the crops you transport, watch ACM Logistics & Consulting inc.,  for real-time updates on prices, shipping times, and more information.

 

 

Shipping containers

Brexit’s Effect on Logistics: Old, Expensive Food

Britain grows just over half of the food its citizens eat, and most of it comes from the other 27 European countries. In a post-Brexit world, Brits may find themselves paying more for food that has taken longer to move from the farm to their table.

Prior to the establishment of the EU, each country crossing between EU countries required a customs clearance, both for people and cargo. With the advent of the EU, the service companies that facilitated the customs entry process were no longer needed. Also, the government customs and immigration agencies were no longer needed for intra-Europe trade. This now has to be rebuilt. The cost for EU products to the United Kingdom will increase to cover the new expense of customs clearance. This extra link in the supply chain will add days to the transit time.

I remember living in West Berlin in the mid-1980s. One summer journey took me from West Germany to Holland, France, Spain and Portugal. Each border crossing was a true crossing, complete with passport review by immigration officers for me, and customs officers for cargo. Contrast that with a trip just last month. I drove through 6 EU countries and only had to slow down to read the “Welcome to Italy” sign! The cost of rebuilding and operating cross-border trade between Britain and the other 27 EU countries will increase the price of these items. And the delay in border crossings will increase transit time.

This is just one of the many issues facing Britain as it removes itself from the EU. Every EU trade agreement will have to remove Britain, and then Britain will need its own trade agreement, including the Transatlantic Trade and Investment Partnership (T-TIP).

SOLAS Update

The International Maritime Organization (IMO) has amended the Safety of Life at Sea Convention (SOLAS) to require, as a condition for loading a packed container onto a ship for export, that the container has a verified weight. The shipper is responsible for the verification of the packed container’s weight. The carrier is responsible for obtaining the verified gross mass of the container in advance of loading the vessel. This regulation went into effect on July 1, 2016. For more details, visit the World Shipping Council.