Supply Chain Update: Dwindling Warehouse Space

While the log jams at west cost ports has gotten much media attention,  a glut of containers is stacking up at the Port of New York and New Jersey,  indicative of one of the newest struggles in our supply chain.  Rebounding consumer demand has led to record imports through US ports on both coasts and strained every link in the supply chain, including warehouse space.

For the year to August, imports at the port of New York and New Jersey were 26.4 per cent higher than for the same period in 2020. The warehouses where those container loads would normally head first before being distributed are struggling to meet the unprecedented demand.

According to the Financial Times, warehouse operators problems are compounded as they face shortages of everything they need to run their facilities efficiently, from racks and balers to forklift trucks and staff. This equipment is caught in the same shipping delays as other imports.

Since our company operates in the middle of the supply chain, on your behalf, we must contend with untangling these persistent transportation logistics challenges the best we can. WB Skinner is leveraging our decades of experience and industry relationships to help meet clients’ needs for temporary warehousing and distribution of merchandise on the east coast.

We also offer our New York and New Jersey area importers a unique container strip and ship service. We unload the merchandise from the container, separate and load the cartons or drums onto new pallets by batch number, and shrink wrap it. Once it is all shrink wrapped, we arrange for a trucker to pick it up and schedule a delivery to your customer’s loading dock.

We are continuing to monitor these updates and doing our utmost to overcome these hurdles by communicating our collective frustrations to the nation’s container ports and carriers, as well as to the U.S. Federal Maritime Commission, which has taken great interest in this matter. Collectively, our goal, like yours, is to find a quick and sensible resolution to our nation’s troubled supply chain.

GSP Expires on December 31, 2017 – What You Should Know

Once again, the Generalized System of Preferences Act (GSP) will be expiring on December 31. With no Congressional authority for renewal in sight before then, importers should be prepared to act as usual during the lapse.

The GSP Act, which provides duty-free treatment to importers of goods from designated beneficiary countries, periodically expires and must be renewed by Congress. All previous GSP renewals that have taken effect after a lapse have had a retroactive clause that provided refunds to importers of eligible goods imported during the lapse period.

What Should You Do?

Until the Act is renewed, WB Skinner encourages you to continue to flag GSP-eligible importations with the SPI “A” designation even as you pay normal trade relations (column 1) duty rates on otherwise GSP-eligible importations.   Refunds will be done directly by CBP, which this year is working towards automating the refunds to enable quicker payment.

If you are a current client of WB Skinner, you will receive your refunds automatically. Contact us for more information.

If you are not a current WB Skinner client, contact us to find out how to receive your refunds.

If you have any questions about your shipments, from how to ensure their safe and effective delivery to ensuring the most cost-efficient procedures, you can count on us to help. And we guarantee you will be greeted by one of our experienced partners, not shuttled off to a junior associate or a voice mail.

Check back at wbskinner.com for updates or contact us for more information.