Incoterms 2010 – DAT and DAP

The International Chamber of Commerce (ICC) has announced the launch of the new rule changes to Incoterms® 2010 which will be kicked off during a September event in Paris. The official implementation of the new rules are scheduled to take place during January of 2011.

On September 27th – 29th, the ICC will hold a series of practical masterclasses on the Incoterms® 2010 rules and provide a detailed presentation of the new rule changes that will be incorporated into the new Incoterms® 2010.

This revision, the first since 2000, will aim to adapt changes that have occured in global trade over the last ten years. According the ICC website, the reason for the changes include:

“The importance of cargo security, the resulting new obligations on traders, developments in container transport, and the 2004 revision of the United States’ Uniform Commercial Code, which resulted in a deletion of the former US shipment and delivery terms.”

Although the book has not been officially released, details on the ICC website show that the most glaring changes to the 2010 version will be the elimination of 4 Incoterms® including, DDU, DEQ, DES, and DAF. Two new terms will be added; DAT and DAP, bringing the new total of Incoterms® to 11.

Incoterms® 2010 will be arranged into the following groups:

Any Mode of Transport

CIP – Carriage and Insurance Paid
CPT – Carriage Paid To
DAP – Delivered At Place
DAT – Delivered At Terminal
DDP – Delivered Duty Paid
EXW – Ex Works
FCA – Free Carrier

Sea and Inland Waterway Transport Only
CFR – Cost and Freight
CIF – Cost, Insurance and Freight
FAS – Free Alongside Ship
FOB – Free On Board

In addition to the 11 rules, Incoterms®2010 will include:

* Extensive guidance notes and illustrative graphics to help users efficiently choose the right rule for each transaction;
* New classification to help choosing the most suitable rule in relation to the mode of transport;
* Advice for the use of electronic procedures;
* Information on security-related clearances for shipments;
* Advice for the use of Incoterms® 2010 in domestic trade

This interpretation is provided as a guide only.

Incoterms® are published by the International Chamber of Commerce and are available on their website and official publication “Incoterms® 2010″. For a complete and official overview please refer to the ICC’s publication.

May Containerized Import Data Update – Zepol.com

On June 5th, we completed the data for May in our U.S. Customs trade data tool, TradeIQ. For the fourth month in a row, import shipments increased, rising 5.68% over April. May 2010 shipments also rose greatly over the previous year, up a whopping 19.55% over May 2009.

Below is a table showing port regions of the world where shipments originated:

Port Region	May 2010Shipments	Percent Change over Apr 2010	Percent Change over May 2009
Asia	559,534	7.63%	23.13%
Europe	109,796	1.57%	14.5%
Central America (includes Mexico)	58,644	3.18%	5.64%
South America	22,148	-0.88%	21.99%
North America	9,508	10.56%	-2.41%
Unknown	8,211	-8.85%	8.74%
Australia	6,868	-6.67%	-1.44%
Africa	3,618	-16.69%	28.57%
Totals	778,327	5.68%	19.55%

While Asian trade looks strong for May 2010 relative to April 2010 and May 2009, a glance at quarterly shipments since quarter three of 2007 shows that the regions’ shipments have yet to return to pre-recession levels. Though June data is needed before we can compare the performance of quarter two, we can see that with 1,470,958 shipments, quarter one is up 13% over the same quarter in 2009, but still down 7% from 2008.

Below is a chart of Asia’s quarterly shipments, starting with Quarter 3 of 2007:

The collection methods used by U.S. Customs for AMS data can lead to an overstatement of shipments for some ports, as imports and exports from Prince Rupert and Vancouver are often recorded as imports for the U.S. Moreover, the data includes shipments from empty containers, may overstate totals from transshipments, and may contain other data anomalies as well.

Zepol’s U.S. Customs trade data is derived from Bills of Lading entered into the Automated Manifest System. This information represents the number of House manifests entered by importers of waterborne containerized goods. This indicator is the earliest data available for the previous month’s trade activity.

Kevin Palmstein is the Director of Marketing and Product Development for Zepol Corporation. Zepol is the leading provider of United States trade information. Zepol’s products, TradeIQ™ and TradeView™, provide access to the latest U.S. Import Customs trade data and U.S. Import/Export Census trade statistics respectively. To learn more about Zepol, visit www.zepol.com and read their trade data blog, www.zepol.com/blog.

Worst crisis in the history of container shipping is not over – CEO of Maersk Line (a TPM recap)

While Eivind Kolding, Partner and CEO of Maersk Line, believes that the worst is behind the container line industry, the pain is far from over. As the keynote speaker at this year’s 2010 Trans-Pacific Maritime Conference in Long Beach this morning, Mr. Kolding noted that while there appears to be a good balance in supply vs. demand, it remains fragile. Trade volumes are up, but still way off from historical norms. The supply imbalance of container ships is lower, but still exists. The rate increases the carriers are seeing right now are good, but who knows when someone in the industry will bring in more tonnage than the market can absorb?

2009 was certainly a bad year for carriers: Mr. Kolding cited a 29% drop in container rates that contributed to an estimated $20 billion dollars in industry losses for the year. Import volumes are currently up 13%, but retail sales have only increased by 1%, therefore the volume increases could be short lived once inventory restocking is over. Consumer confidence is up, but still below where it should be.

On the question of industry consolidation, he highlighted the fact that too many players are chasing the same pieces of the pie. Even Maersk Line, the giant in the industry, only controls a 15.8% market share and the top 10 carriers in terms of volume barely control 60% of the market. Despite this, he doesn’t think we’ll see any shipping lines go down due to the downturn or from acquisition. Meanwhile, rates on the trans-pacific trade lanes are break-even at best.

Somewhat surprisingly, he had some critical words for his own company and the liner industry as a whole regarding delivery reliability and overall service. I’m paraphrasing, but he said something to the effect of “Our delivery reliability is appalling as an industry; best in class is only 60%. If we could get to 95% reliability customers could reduce inventory buffer by 60%.” He also expressed support for one-click shipping, citing statistics that showed that they amend each BL at least once.

On the question of slow steaming and the ever larger containerships entering the market, he insisted slow steaming was here to stay; partly as an environmental initiative and partly to save on bunker costs. As for the mega ships, he expects the trend for bigger ships to continue. “There is no reverse in the development of bigger vessels”, he said and reported that the majority of the vessels being laid up are the smaller, older ships: virtually all of the larger, more economical ships, are all in service.

2009 Container Shipping Review – Zepol.com

As everyone in the 3PL community knows, 2009 was a tough year as United States import shipments were down 12.5% and TEUs dropped 11.7% when compared to 2008. The outlook does not look promising as 2010 begins as carriers struggle to stay afloat and rumors of rate increases abound. Below is a review of container shipping in 2009.

The total number of import Bills of Lading has a close relationship with TEUs; looking at the top ten U.S. and International ports shows that few ports saw strong years in 2009.

Kevin Palmstein is the Marketing Manager for Zepol Corporation. Zepol is the leading provider of United States trade information. Zepol’s products, TradeIQ™ and TradeView™, provide access to the latest U.S. Import Customs trade data and U.S. Import/Export Census trade statistics respectively. To learn more about Zepol, visit www.zepol.com and read their trade data blog, www.zepol.com/blog.

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