When the US took the decision to apply 25% duty surcharges on imports, Chinese companies as well as their Far East competitors began making alternative plans.
Far East Production Increase
Expect to see huge ramping up of production in Vietnam (especially), Malaysia, Indonesia as well as other Far East counties such as Cambodia and Thailand.
Even if the US were to reverse Chinese duty surcharges tomorrow,
It will come as no surprise to anyone involved in international trade that the current China / USA trade war is going to result in major changes in the flow of goods, especially as the US market is by far the largest for Chinese companies. As China’s second largest market for its manufactured goods, EU companies are well placed to drive harder bargains with Chinese suppliers who will by now rather keen to find new outlets for the goods so that they can keep their factories in production,
With over 30 years experience in handling clients who wish to import goods from India, it’s easy to see why so many clients choose us to move their freight. With a dedicated team who will handle as little or as much of the process as you require we are always on hand to help. We know the importance of your shipment to you and that’s why we keep in touch every step of the way with our tracking system that follows your cargo for the journey.
We deal with clients from across the globe, many of whom import from the USA. Our team has vast experience in dealing with shipping services coming into the UK and are happy advise on the best way based on your budget and time constraints.
Transit time from can vary depending on the locations of the port you are exporting from and also the UK location but transit times tend to be between 10 and 12 days.
The main media outlets have comprehensively covered the ‘Trump 25 % duty rate’ and for companies in the trade it is worth going into more detail.
Firstly, the 25% rate applied from 10 May 2019 but for shipments that left from China before that date and are already in transit the previous 10% duty rate will apply.
The higher duty rate of 25% ONLY applies for imports from China to the USA.
Terms Of Sale
Terms of sale are almost universally used when trading internationally.
When importing from China or importing from India, by air or by sea freight, terms of sale, whilst not incorporated in law do provide clear lines regarding responsibilities and who pay what costs in international freight.
There are some anomalies, not surprising really as Incoterms where first introduced in 1936 and they always seem to struggle to keep up with international trade despite numerous re-writes.
Whether it’s due to Brexit fears or maybe just a lack of business confidence, freight volumes from China and the Far East are in the doldrums. The consortiums of shipping lines have tried to push rates up by restricting capacity so in the process 115000 TEU (20ft equivalent units) of container slots have been removed from circulation by cancelling sailings and either mooring up ships or slower steaming.
This has had the effect of some erratic scheduling as services have been combined with lots of containers being transferred from one ship to another on route.
Just when we thought US duty rates had settled down we hear of a new proposed set of surcharges for 2019.
US Surchage Changes
These are being proposed on ‘national security grounds’ the target being the automotive sector, both finished cars and car parts.
The proposal was submitted to President Trump on the 17 February 2019 and he has 90 days starting from the date he received the report to decide to accept the recommendations in part,
30 years ago a new transport company opened for business in Northwich. K&L Freight’s business at the time was based around UK deliveries using the company’s trucks from its base in Northwich. The owners soon realised that K&L Freight’s key customers had started to sell their products into Europe. In response to this demand the company started to send its trucks into Europe fully loaded with customer deliveries.
Nothing in the world of transport stands still and after several years of trading owners Martin Kidd &
We have been asked this question many times over in the last few months.
The answer is there’s no need to panic as the UK’s biggest port for container traffic is Felixstowe and it handles a small amount of EU origin cargo so the effect should be minimal, furthermore there are no planned changes to the import customs processes and procedures for non EU goods entering the UK through the whole Brexit process.