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Regulatory initiatives by US could harm trade

The US Customs proposal for full manifest of US-bound cargoes 24 hours before loading has raised worldwide concern over the conduct of international trade and fears have been expressed chaos in the maritime trade if US proceeds with its unilateral move.
 
In a detailed response to US government, the World Shipping Council urged the government to delay for 12 months.
 
The European Union has also expressed "serious concerns" about US proposals to tighten vessel manifest declarations at foreign ports, putting further political pressure on Washington to delay implementation.
 
The Commission said the changes will "seriously disrupt EU transport operations without necessarily giving the US the security assurance it seeks".
 
The World Shipping Council said any new requirement that cargo manifests be provided 24 hours before US-bound containers are loaded in a foreign port and the initiative would be extremely complex and could have far reaching consequences to international trade.
 
The Council warned that failure to address its implications fully in advance could bring chaos to international maritime trade
 
Shipping lines said the changed ruling could potentially mean a setback in the supply chain, if not attended appropriately.
 
Most shipping lines would need at least a 12 hours before the proposed customs deadline for shipper information, to be properly processed in time for the 24 hour deadline.
 
Lines in Port Klang say they often accept cargoes at the terminal up to 12 hours before the ship sails.
 
In other ports special "late gates" come in six to eight hours before sailing.
 
An immediate impact would also be on the port terminal operators as boxes would tend sit in the yards for longer, they would need at least more space and put a very big strain on equipment turn time.
 
Shippers, who are talking about speed to market, would ultimately bear the cost of the short-fall as they now have to consider how security is going to impact their supply chain.
 
The WSC described the proposal as "the single most substantial proposed change to how America's international maritime commerce would be conducted since September 11.
 
Its ramifications will affect every shipper, every importer, every port, ever marine terminal operator, every transport intermediary, every bank financing America's international trade and ever maritime carrier involved in transporting goods by sea to the US.
 
The various regulatory actions initiated by US have a significant economic impact and it would increase carrier and shipping costs and it will require trade processes to change significantly, the Council added. 

             

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