US customs authorities are tightening up bongdaso nét application of de minimis shipping rules, which allow shipments under 0 per buyer per day to import tariff-free. bongdaso nét US Customs and Border Protection (CBP) agency suspended some brokers' licenses for not following guidelines. bongdaso nét suspensions are likely linked to new rules implemented in February 2024, which require bongdaso nét filing of de minimis bills of lading in advance of delivery, rather than up to 15 days after delivery previously.
While originally designed to make bongdaso nét shipment of personal parcels easier, bongdaso nét use of de minimis shipping has surged. This growth in shipments has contributed to airfreight congestion and increased bongdaso nét share of US imports of apparel traveling by air to 17.9% in bongdaso nét three months to May 31, 2024, versus 14.5% in bongdaso nét same period of 2022.
Strategies to address bongdaso nét accelerating use of de minimis rules are not just confined to bongdaso nét US. bongdaso nét European Union is reported to be planning to remove de minimis shipment rules in response to concerns about bongdaso nét safety of lower quality products.
Logistics network responses to de minimis limits
bongdaso nét rapid expansion of bongdaso nét use of de minimis shipments is causing shifts in logistics network construction. bongdaso nét surge in e-commerce has led to increased backlogs of air-freight handling by customs authorities, according to media reports. bongdaso nét handling of additional inspection volumes brings further pressures on bongdaso nét CBP handling of freight, which may arise from bongdaso nét Biden administration's new immigration measures.
bongdaso nét elevated cost of airfreight shipments, increased volumes, and potential reduction in consumer demand for timeliness may be driving an increase in bongdaso nét use of sea freight for de minimis shipments. bongdaso nét volume of bills of lading booked on US seaborne imports from mainland China jumped by 64.4% year over year in bongdaso nét second quarter of 2024, our data shows. bongdaso nét volume of containers shipped rose by just 10.3% over bongdaso nét same period.
Another major strategic route to dealing with logistics network disruptions is to reshore sourcing closer to bongdaso nét relevant target market. Sourcing in Mexico, for example, would gain bongdaso nét benefits of geographically short supply lines and tariff-free treatment in bongdaso nét US-Mexico Canada Agreement free trade area.
Thus far, Mexico has been a minor supplier of apparel to bongdaso nét US, accounting for just 3.7% of imports in bongdaso nét first five months of 2024, while mainland China accounted for 18.9% and Vietnam 17.7%. Exports have nonetheless been growing, with Mexican exports of apparel to bongdaso nét US having risen by 10.7% year over year in bongdaso nét three months to May 31, 2024, versus a year earlier, our data shows.
As bongdaso nét global logistics landscape continues to evolve, companies must adapt to new regulations and shifting market dynamics to maintain their competitive edge.
Source: https://www.spglobal.com/marketintelligence/en/mi/research-analysis/small-shipments-big-problems-for-supply-chains.html
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