The United States will impose additional 301 tariffs on China starting August 2024

Key Forecasts and Transformations Shaping the 2024 Freight LandscapeThe 2024 freight market is expected to experience significant trends and market shifts, with key factors influencing both air and ocean freight sectors, as well as broader supply chain operations.Key Trends in Air Freight1. Stabilization of Market Rates: Demand for air freight is anticipated to increase, driven partly by nearshoring and changes in consumer spending. However, this will be tempered by constricted capacity that keeps market rates relatively flat for the majority of the year before a potential surge in Q4.2. Impact of Global Conflicts: Ongoing conflict in the Middle East and Ukraine is predicted to affect oil prices, thereby impacting air freight costs significantly.3. Technological Advances: The adoption of technologies such as generative AI for capacity matching and supply chain optimization is also transforming the air freight sector.Key Trends in Ocean Freight1. Overcapacity Issues: The ocean freight sector is likely to face an overcapacity situation, as new capacity outpaces demand. This is reflected in a record low Drewry Supply/Demand Index of 74.3 for 2024, far below the market equilibrium benchmark of 100.2. Rate Management by Carriers: Carriers are expected to employ strategies like blank sailings and slow steaming to manage the excess capacity and stabilize rates, even though low-rate levels are projected.3. Influence of Major Canals: Potential disruptions in the Suez Canal and recovery operations in the Panama Canal are influencing the freight landscape by impacting delivery times and operational strategies.U.S. Customs and Trade Policies1. Enhanced Enforcement: The U.S. Customs and Border Protection (CBP) will escalate enforcement of the Uyghur Forced Labor Prevention Act (UFLPA), placing more responsibility on U.S. importers to ensure compliant supply chains.2. New Data Requirements: Partner Government Agencies (PGAs) will mandate new data elements, changing the compliance landscape for importers.Global Macroeconomic and Logistical Shifts1. Revised GDP Growth: Global GDP growth has been revised downward, influenced by softening economic conditions in APAC and China, but with improved projections in the U.S. for the second half of 2024.2. Nearshoring: The trend of nearshoring, particularly to Mexico, is expected to continue, driven by a noteworthy increase in foreign direct investment in the country. This strategy aims to mitigate supply chain disruptions and enhance operational resilience.3. Contract Logistics Growth: The demand for outsourced logistics services remains strong, with significant growth in contract logistics predicted despite inflationary and geopolitical pressures.In summary, the 2024 freight market is poised for complex dynamics with stabilization in air freight rates, overcapacity in ocean freight, strict enforcement of trade policies, and a strategic shift towards nearshoring to navigate global uncertainties.

Rail Strike Deferred as CIRB Reviews SubmissionsCanadian Pacific Kansas City (CPKC) has announced that a potential rail strike will not occur this month, as they await a decision from the Canada Industrial Relations Board (CIRB). This decision follows a request from CIRB for submissions from CPKC, Canadian National (CN), and the Teamsters Canada Rail Conference (TCRC) union, with a deadline of May 21.Submissions and ReviewThe CIRB has asked for comprehensive submissions from all involved parties, which must be filed by the end of the month. The board will review these submissions to make a well-informed decision regarding the potential strike. Until the CIRB makes its ruling, a legal strike or lockout cannot take place. Furthermore, any potential strike would require a 72-hour notice before commencing.Maintenance of Service AgreementCPKC has proposed to the TCRC that both parties agree on the services that should be maintained in the event of a strike or lockout. This proposal aims to eliminate the need for the CIRB's involvement and provide clarity on the timing of any potential industrial action. Based on past experiences, if no agreement is reached, it is unlikely that a strike can commence within the next 60 days.Background and Government InvolvementEarlier this month, rail workers from both CN and CPKC voted overwhelmingly to strike as early as May 22. In response, the federal government intervened, requesting the CIRB to investigate whether the strike would have safety implications. This move underscores the government’s concern about the broader impacts of such industrial actions on public safety and commerce.Referral：https://www.canadiancattlemen.ca/daily/rail-strike-wont-happen-this-month-cpkc-says/Canada Logistics and Transportation UpdateCustoms Clearance Status- Canada: Normal- UPS Operations: NormalPorts and Railways1. Vancouver Port (Vanterm/Delta/DP): - Container release time: Approximately 3-5 days. - Containers can be loaded onto trains in about 1-2 weeks after unloading in Vancouver and Prince Rupert ports. - Additional fees for returning containers to DP(Centerm) if required by shipping lines.2. Toronto Yard: - Increased wait times for container releases. - Difficulty in returning containers to CMA; some containers require special returns to Etobicoke, with additional fees if not done by the weekend.3. Long Distance/Special Return Addresses: - Additional fees for returning containers to distant or special locations.Amazon Warehouse Update1. Toronto Region: - Normal delivery operations.2. Vancouver Region: - Alleviated congestion at the YVR3 warehouse.3. Edmonton Region: - YEG2 warehouse experiencing congestion, with an expected wait time of 3-5 hours.4. Calgary Region: - YYC6 requires approximately 7 days for appointments, with wait times of 2-5 hours. - YYC4 requires about a week for appointments. Currently, PODs signed at this warehouse can only receive signatures, not stamps.5. Montreal Region: - YOW1 and YOW3 warehouses have wait times of 2-3 hours.Recommendations- For large items, consider transferring them to YYC6 and YGK1 warehouses for better handling.- Be aware of additional fees associated with special return locations and plan accordingly.Check Amazon Fba Warehouse Locations in Canada：https://globalshippingauto.com/amazon-warehouse-locations-canada

If you’re selling products through Amazon’s Fulfilled by Amazon (FBA) program, understanding and adhering to Amazon’s packaging and size guidelines is crucial.Whether you handle your own shipments or use a China freight forwarder to transport your goods, following these guidelines ensures your inventory is received smoothly and processed efficiently.Proper packaging prevents significant issues like rejected shipments, returns, extra fees, or even the loss of your ability to send products to Amazon’s fulfillment centers.Why Proper Packaging MattersLet’s start with why this is so important. When you don’t meet Amazon’s standards, you’re setting yourself up for:Rejected shipments: If your products arrive at the fulfillment center and don’t meet requirements, Amazon can refuse them. This means you’ll have to pay for the return and redo your packaging.Extra fees: Amazon might handle non-compliant packaging, but they’ll charge you extra for it.Loss of FBA privileges: Repeated non-compliance can lead to restrictions on your ability to send shipments to FBA warehouses.Understanding what’s at stake, let’s dive into how you can make sure your packaging meets all Amazon’s requirements.General Packaging RequirementsUse Sturdy, Six-Sided Boxes: Every item should be packed in a sturdy box with six solid sides and flaps intact. Flimsy or damaged boxes are a no-go.Scannable Barcodes: Each unit must have an exterior barcode that’s easy to scan without opening the packaging. This barcode should correspond to the product's FNSKU or manufacturer barcode.Remove Old Barcodes: If you’re reusing a box, make sure any old shipping labels, barcodes, or markings are completely covered with opaque tape or crossed out.Proper Sealing Materials: Use high-quality tape to secure your boxes. Don’t use staples or nylon fiber tape, as these can cause safety issues.Adequate Cushioning Inside: Internal materials should cushion and protect the items. Avoid loose packing peanuts or shredded paper as they create a mess during the unboxing process and aren’t accepted by Amazon.Product-Specific Packaging Requirements1. Loose ProductsEach product should be in a secure, single package. If it’s not in a box, secure it with an easy-to-remove tape or a poly bag.Clothing and Footwear: Clothing should be packaged in a clear poly bag to prevent dust and damage. Footwear should be enclosed in a box or poly bag without any material exposed.2. Poly-Bagged ItemsSuffocation Warning: Poly bags with openings larger than 5 inches must display a suffocation warning label. The print size should follow these guidelines:60 inches or more (total length + width): 24-point font.40-59 inches: 18-point font.30-39 inches: 14-point font.Under 29 inches: 10-point font.Thickness and Transparency: The poly bag must be at least 1.5 mil thick and transparent. Ensure that the bag is sealed completely and doesn’t extend more than 3 inches beyond the product dimensions.Label Visibility: The barcode must be visible through the bag, or you’ll need to attach an external label.3. Bubble-Wrapped ItemsFragile Products: For items that could break during transit, wrap them tightly in bubble wrap and secure with tape.Label Placement: Make sure the barcode is visible on the outside of the bubble wrap.Fall Examination: Items secured in bubble-wrap should endure a fall from a 3-foot height onto a solid surface without any harm to the contents.4. Bundled SetsProducts sold as sets (e.g., a set of 6 glasses) should be marked as “Sold as Set” or “Do Not Separate” to ensure the items stay together during fulfillment.Bundle Barcode: The set should have its own unique FNSKU barcode, and barcodes on individual items within the set should be covered or removed.5. Boxed UnitsBoxed items need to have six solid sides and must not collapse under medium pressure. Boxes with perforations or openings must pass a 3-foot drop test to ensure they don’t open in transit.Product Security: If a boxed item can open on its own, secure it with tape or place it in a poly bag.Preparing Shipments for FBAWhen it’s time to send your products to Amazon’s fulfillment centers, make sure you’re following these additional requirements:Box Content Information: You need to provide detailed information about what’s in each box, including the product types and quantities.Label Placement: Place the FBA Box ID label and carrier label on a flat surface of the box, not over any seams. Each box should have its unique label, generated during the shipment creation process.Box Size and Weight: No side of the box should exceed 25 inches, and the total weight should not go beyond 50 lbs unless an individual item is oversized.Multiple Cases in One Box: If sending multiple case packs, apply the FBA label to the outer box only.Acceptable Packing MaterialsUse These:Bubble wrapHeavy-weight kraft paperInflatable air pillowsPolyethylene foam sheetsAvoid These:Packing peanuts (even biodegradable)Foam stripsShredded paperStyrofoamWhere to Get Packaging SuppliesYou can order packing supplies like boxes, labels, bubble wrap, and packing tape directly from Amazon or find them at local hardware stores such as Home Depot and Lowe’s. If you’re using Amazon’s partnered carrier, like UPS, you might be eligible for free shipping labels, which is a nice bonus!Final ThoughtsNavigating Amazon’s FBA packaging guidelines might seem daunting at first, but once you understand the rules, it becomes a routine part of your business. Proper packaging not only ensures your products are safe and secure but also keeps your seller account in good standing. Make sure your supplier is well-versed in these requirements if you’re having products sent directly to Amazon from your manufacturer.Take the time to follow these guidelines carefully, and you’ll reduce the risk of delays, extra fees, and damaged goods. This means smoother operations, happier customers, and a more profitable business.FAQsWhat happens if I don’t follow Amazon FBA packaging guidelines?Your shipment may be refused or returned, leading to extra costs and potential FBA restrictions.Can I use packing peanuts in my FBA shipments?No, Amazon prohibits the use of packing peanuts, even biodegradable ones.Do poly bags need a suffocation warning label?Yes, any poly bag with an opening larger than 5 inches must have a suffocation warning printed or labeled.