AIR CARRIERS INCREASE FUEL SURCHARGE

Air Carriers servicing inbound cargo over the Atlantic are increasing their fuel surcharge from EUR 0.30 to EUR 0.35 per kg of actual freight weight, effective March 21, 2005.

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If you have any questions, please contact your IFF sales or service representative.

 
WOOD PACKING MAT. REGULATION FOR IMPORTS INTO EUROPE

Effective March 1st, 2005, the European Community (EU) will enforce its regulations in regards to imports into the EU from all origins. All wood packaging material must comply with ISPM 15 (International Standard on Phytosanitary Measures). Therefore, wood packaging will require treatment prior to shipping and must be marked accordingly.

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If you have any questions, please contact your IFF sales or service representative.
 
NO END TO WEST COAST PORT/RAIL CONGESTION


An article from the "American Shipper" Feb 2005 provides comprehensive information regarding the issues and cause for shipping delays, currently experienced dealing with the West Coast.
IFF took the liberty to summarize, however, the article in it's entirety can be read at the following link: click here

  • Expect Delays similar to this past year due to rail, ocean ports and trucking overcapacity. Most are results of structure damages caused by storms and the increased traffic volumes. Additional trade and union issues have also contributed to the slow downs.
  • Alternatives to Los Angeles/Long Beach Ports are limited.

    1. Northeast Ports (Seattle/Tacoma) are already near capacity
    2. AWS via the Panama Canal is at or near capacity.·

  • Rail Improvements are not expected within 2 years. West coast rail lines suffered extreme damage from the rainstorms and rerouting has caused congestion to transit alternates.

  • Port Congestion improvements are in process but not expected within 2 years. ·

  • Ship Capacity from Asia/USA will actually decrease by 2% overall due to infrastructure problems.

  • Costs will likely increase on Asia/USA trade.

The end analysis? There is not a single short-term or long-term answer to the existing problems. If you are sourcing from Asia, then the best defense is to increase lead-time by a minimum of 14 days. Carriers, rails, ports, trucks, and NVO's will not be held responsible for market delays due to infrastructure beyond their control. We have already heard from several customers who are changing their order cycles from 120 days to 150 days to account for delays in production and logistics. Although not all companies order cycles are the same, we would encourage customers to use this information to revamp and make alterations in their ordering and delivery time process.

If you have any questions, please contact your IFF sales or service representative.

 
DEMURRAGE RATE INCREASE / FREE TIME DECREASE
 

We have received notice from one of our carriers, providing notification of increases in demurrage rates and decreasing the demurrage "free-time". Effective May 1st, 2005 the BNSF will calculate free time in calendar days, including Saturday's and Sunday's, where previously the first weekend was excluded. In addition, they will be raising their demurrage fees.

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If you have any questions, please contact your IFF sales or service representative.

 
PACIFIC CARRIERS MAY HAVE TO PASS ON INCREASES

The "Transpacific Stabilization Agreement" (TSA) carrier group warned that its shipping line members may have to pass on to shippers increases in the costs they face from ports, railroads and other subcontractors.

Without specifying the amounts of the cost increases, the TSA said its shipping lines "have already received indications from ports, terminal and feeder service operators, rail and truck vendors and others, of higher rates and special charges in the coming year, to help fund capital and service improvements." Carriers "cannot simply absorb those costs," the carrier group said, and part of the increases will have to be passed on to shippers and over time. The TSA has already announced plans to raise rates May 1, 2005.

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If you have any questions, please contact your IFF sales or service representative.

 
BIG SHIPS MEAN BIG SHAEKUPS FOR PORT & RAILROADS


The first trickle of 8,000-TEU ships arrived at West Coast ports last year and were a minor contributor to the congestion that gripped the Los Angeles-Long Beach during the summer-fall peak season. The new ships produce concentrated demand for terminal space, labor and intermodal rail and truck capacity. The stress on ports, marine terminals and inland infrastructure will only get greater.

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If you have any questions, please contact your IFF sales or service representative.
 
HOW TO PROTECT YOUR CARGO FROM DAMAGE & THEFT
 

Are you protected? - IFF can assist with your cargo insurance needs.

If you do not have cargo insurance or your current policy does not adequately fulfill your needs, please contact us for an insurance consultation.
IFF can arrange to have your shipments insured door to door. Cargo insurance is relatively inexpensive and should be considered to protect and reduce the exposure of a major loss.
Please click the link below for an insightful article found within Shipping Digest February edition in regards to protecting your cargo from damage and theft.

Please click here for further information.

If you have any questions, please contact your IFF sales or service representative.

 
IFF SPONSORS MASTERPIECES ART SHOW IN ATLANTA

IFF is proud to be a sponsor of the 'Masterpieces From European Artist Colonies 1830-1930" exhibit, held at the Oglethorpe Museum of Art in Atlanta, GA., through May 22, 2005.

The 19th Century artist colonies created a phenomenon, which contributed to the birth of impressionism and "effectively united multiple European cultures at a time when the countries of Europe were sliding toward military conflict."

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If you have any questions, please contact your IFF sales or service representative.