Posted on 06/01/2024 6:56:23 PM PDT by texas booster
0:00 on today's episode of what's going on 0:01 with shipping customs in Border 0:03 Protection are cracking down on 0:05 e-commerce hey what's going on with 0:07 shipping Sal Mercogliano here so the other 0:10 day we did a video where we were talking 0:12 about container Freight rates and the 0:14 spike that we're seeing as a result of 0:16 the diversion around Africa because of 0:19 the attacks waged by the houthi well 0:21 there's a story this week in loadstar 0:24 great online source that allows you to 0:27 really look at all aspects of the global 0:29 supply chain and they're talking about 0:31 CBP Customs and Border Protection 0:34 scrutinizing small shipments what they 0:36 call De Minimus shipments coming into 0:38 the United States largely by air but 0:40 also by sea and what impact is that 0:43 going to have on you the consumer the 0:46 shipper the carrier of goods what is the 0:48 big long-term impact that we can expect 0:51 to see because if this is happening now 0:53 on air travel it's only a matter of time 0:55 till it happen on Seaborn trade and 0:58 e-commerce is the way we live we order 1:00 everything through this gadget so what
1:03 does this mean for us if you're new to 1:04 the channel hey take a moment subscribe 1:06 to the channel and hit the Bell so be 1:07 alerted about new videos as they come 1:09 out so here's the story over at load 1:11 Star Customs Brokers under scrutiny as 1:14 uscbp confirms e-commerce Crackdown so 1:17 Alex Lan had this story they're quoting 1:20 the CBP acting commissioner Troy Miller 1:23 in it he noted that the a agency is 1:26 quote taking action to ensure compliance 1:28 and minimize the exploitation of the the 1:30 small package or di Minimus environment 1:32 di Minimus means anything under 1:35 $800 shipped by an individual each day 1:38 used to be $200 but that was increased 1:41 back in 2016 goes on while the majority of the 1:44 broker carriers and supply chain 1:46 businesses that participate in cbp's 1:48 entry type 86 test are compliant with 1:51 applicable laws we are enhancing our 1:53 enforcement efforts to ensure that all 1:55 participants are held accountable when 1:57 they are not to date CBP is suspended 2:00 multiple Customs Brokers from 2:02 participating in the entry type 86 test 2:06 and the one that has been publicly named 2:08 so far is Seko Logistics they told their 2:12 customers not in an official statement 2:14 but uh in an email to their customers 2:16 that it's incredibly disappointed by 2:18 this unfortunate decision and it added 2:20 that it had a 2022 99.99% compliance rate we intend to 2:25 press for reinstatement as soon as 2:27 possible this is leading to a series of 2:30 inspections on shipments and and Di 2:33 Minimus cargo coming in in particular 2:35 from freighter flights originating in 2:37 mainland China and congestion is said to 2:40 be building a customs warehouses at Los 2:43 Angeles International Airport now 2:45 they're saying Freighters here they're 2:46 talking about aircraft Freighters not 2:48 ship freighter so when it comes to 2:50 e-commerce electronic Commerce this is 2:51 what CBP put out as their strategy as 2:55 it's a growing segment of the US economy 2:57 and it has been for the last several 2:58 decades CBP must adapt to changing ways 3:01 business conducted due to the growth of 3:03 low value packages which e-commerce 3:05 primarily drives their strategy 3:08 strengthens its ability to protect the 3:09 health and safety of American citizens 3:11 and the US economy from non-compliant
3:13 Goods CBP defines Ecommerce as a high 3:17 volume low value shipments entering the 3:19 port limits of the United States to 3:22 achieve that strategy CBP put out four 3:24 goals one is to enhance legal and 3:26 Regulatory authorities to better posture 3:29 CBP and Inter agency partners to address 3:31 the emerging threats second to enhance 3:34 and adapt all affected CBP operations to 3:36 respond to emerging emerging supply 3:39 chain Dynamics created by the rapid 3:41 growth of e-commerce three Drive private 3:44 sector compliance through enforcement 3:46 resources and incentives and four 3:48 facilitate International Trade standards 3:50 for e-commerce to support economic 3:52 Prosperity now there's obvious 3:54 challenges that they face in this one of 3:56 the biggest ones is the increasing trade 3:58 volume since 2000 the number of 4:00 Americans shopping online has increased 4:02 four-fold and Covid magnified that 4:04 massively. e-commerce hit levels that 4:07 were not expected to be 4:09 reached until a decade later but 4:12 everybody shifted over to this and 4:14 especially in this area of goods valued 4:17 under $2500 now De Minimus shipments 4:20 are under $800 but we're seeing this 4:23 growth you're seeing dangerous and 4:25 non-compliant shipments take place uh we 4:28 see that in early 2017 small packages
4:31 Special Operations at international mail 4:33 facilities in New York They seized more 4:35 than 5 pounds of fentanyl along with 4:37 almost 1300 other non-compliant 4:39 shipments that has spiked tremendously 4:42 it's one of the reasons we're seeing 4:44 this Crackdown and then third is 4:46 consumer awareness now load star has 4:49 been following this continually this is 4:50 a story from a few days ago custom 4:52 Brokers caught up in US Crackdown on 4:55 Chinese e-commerce traffic this is 4:58 specifically discussing a seizure of 5:00 about a thousand tons of goods that was 5:02 coming in Via e-commerce it talks about 5:05 Seko and their participation in the 5:08 program and their suspension for 90 days 5:12 the story highlights what they call two 5:15 big issues brought to bear by an import 5:17 broker in and around Los Angeles airport 5:20 one is customs discovering lots of drugs 5:22 Fentanyl and Drug making Tools in 5:24 e-commerce shipments the second is 5:27 shippers declaring the value of goods to 5:29 be less than $800 and that amount is 5:32 actually more than that and this has 5:34 resulted in Customs and Border 5:37 Protection now inspecting every single 5:39 e-commerce shipment coming from Mainland 5:42 CH China on Freighters leading to 5:44 airport congestion delays and 5:46 cancellation and suspension of some
5:48 flights all freighter coming into LAX 5:51 from mainland China many of them of 5:53 which are Sheen and temu are going 5:55 straight to customs warehouses for full 5:58 inspection and CBP is finding a lot of 6:01 illegal stuff there is fentanyl drug 6:03 making equipment and Mis Declaration of 6:05 value to meet the De Minimus 6:08 threshold story includes a statement 6:10 from a charter broker saying that they 6:11 were really nervous goes on to say temu 6:15 has got a lot of capacity booked until 6:16 the end of the year and they're starting 6:18 to get very nervous about that I've just 6:21 received a note from our Chinese 6:22 government guy that says let us use an 6:24 old Chinese saying "let the arrow fly a 6:26 little then we'll know what happened."
6:29 Carriers such as CMA CGM which has an 6:31 air cargo business which they invested 6:33 in during the supply chain crisis was 6:36 planning to begin flights from China to 6:38 the US but now that'll likely be paused 6:40 until later in June goes on here sources 6:44 said the US was unlikely to stop 6:45 checking shipments anytime soon 6:47 particularly following the discovery of 6:49 Fentanyl and Drug making equipment 6:50 tighter Security on the Mexican border 6:52 has led drug smugglers to identify other 6:54 routes and Air Cargo is now one of them 6:57 so you're asking yourself wait a minute 6:59 Sal why you bring this up on what's 7:00 going on with shipping you do Global 7:02 Maritime shipping you don't do air 7:03 shipments well if De Minimus shipments 7:05 are going to get held up coming in via 7:08 air they're going to shift over to the 7:09 Sea because containers do not get 7:12 inspected at the level that you tend to 7:15 think they're inspected at and it has a 7:17 lot to do just with sheer volume this is 7:20 the call sheet for containers coming 7:23 into the Port of Los Angeles so just 7:25 this week week 22 May 26 to June 1st 7:30 91,881 containers came into the Port 7:35 of Los Angeles the next week it's going 7:36 to be 98,000 the following week 7:40 128,000 containers put that into context 7:44 there are 10,080 minutes in a week if 7:47 you're shipping 91,000 containers into 7:50 the Port of Los Angeles you would have 7:53 to be inspecting nine containers a 7:56 minute to fully inspect a container and 7:58 most containers don't get cracked open 8:01 at all they run through scanners they 8:03 run through x-ray machines so that they
8:05 can see what's in them to make sure they 8:06 kind of match up with what their 8:09 manifest says but a very small 8:11 percentage we're talking about just a 8:12 few percentage points are actually ever 8:15 cracked open and open and even when you 8:17 open a container all you see is the 8:19 front of the container you don't see 8:20 what's down the next 20 40 or 45 feet 8:24 this is almost impossible and if you 8:27 start inspecting the De Minimus 8:28 shipments coming in into the US by air 8:31 then a lot of that cargo and illegal 8:33 cargo is going to shift over to Ocean 8:35 Travel and this could have an impact 8:37 we're seeing talks already about trade 8:40 restrictions revitalization of tariffs 8:43 it is an election year in case you
8:44 didn't know there's going to be an 8:45 election between two young strapping 8:47 Americans who are going to run for 8:49 president the same two that ran four 8:51 years ago are going to run again they 8:53 are going to be using this issue as a 8:56 massive point of contention and again if 9:00 this rolls over into ocean shipping it's 9:02 going to have a big problem if you want 9:05 to follow this series head on over to
9:06 load star they have a great e-commerce 9:08 Series where they have been tracking 9:11 this Non-Stop and I really strongly 9:13 recommend it especially if you are 9:15 looking at small scale shipments coming 9:17 into the United States because these 9:19 have become the norm this is from 9:21 Customs and Border Protection shows you 9:23 some of the statistics here in terms of 9:25 De Minimus shipping I have a little 9:27 problem here with CBP is they're saying 9:29 that this is a volume measurement but 9:31 they don't give you a guide of for what 9:32 they're measuring it in so I'm not sure 9:34 what their millions are in if it's cubic 9:36 feet or if it's in tons I don't know but 9:38 the the key here is if you look at total 9:41 de Minimus shipments they have been 9:43 increasing quite a bit and matter of 9:44 fact over a billion last year we're at 9:47 the midyear point at 705 million so 9:50 you're definitely seeing an increase and
9:52 the value there is tremendous but notice 9:54 where most of that gets shipped it's on 9:56 air air is where you tend to see it uh 9:59 not so much on vessels but again you can 10:01 expect to start seeing a shift if this 10:04 happens dealing with e-commerce is 10:07 largely air more than anything else 10:09 however we do see shipments coming in by 10:11 sea and now with issues of tariffs and a 10:15 much more kind of ramped up attitude 10:17 toward China we could expect to see some 10:19 slowdown in Commerce coming in through 10:22 China as tariffs and trade restrictions 10:25 potentially become a hot point during 10:28 the upcoming political election what 10:30 does that mean you can expect to see 10:31 some Freight increasing from Asia over 10:34 to the United States to beat this prior 10:37 to the election cycle this is something
10:39 we tend to see a lot we saw it during 10:41 2016 we saw it in 2020 we'll probably 10:44 see it again here also I want to make 10:47 you aware working on a video here that I 10:49 think you're going to find really 10:50 interesting uh aliance has come out with 10:52 their annual report on safety and 10:55 shipping review really interesting 10:57 talking about our ship safety than they 10:59 have been in the past I know it's very 11:01 easy to sit there and say well no s we 11:04 took out a bridge in Baltimore we've had 11:05 ships on fire but this review is a great 11:09 breakdown of not just what's happening 11:11 afloat but what is happening regarding 11:14 the different types of ships and where 11:16 in the world do these accidents take 11:18 place
One used to buy from Amazon and get pretty decent stuff. No more! It is mostly disappointing in quality.
Between Temu, AliExpress and Shiba plenty of foreign companies take advantage of shipping for a dollar - air freight! It is slowly coming to an end.
China just landed a second lunar lander on the dark side of the moon.
China is unstoppable
USA domination is over
That’s a bit defeatest don’t you think?
...and we’re paying for it...
“They seized more 4:35 than 5 pounds of fentanyl“
I am developing a chitosan based product. One supplier is in China, another in Canada.
It comes as a white powder.
My boss said no to the Chinese supplier. Customs was one of the reasons.
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