International Shipping Updates: September 2024

Read on to catch some of the biggest stories affecting the world of international shipping this month.

New TSA Rules Impact Air Freight Imports

Starting August 21, the US Transportation Security Administration (TSA) instituted emergency rules for all air freight cargo bound for the United States. In collaboration with the US Air Cargo Advanced Screening System (ACAS), these stringent measures are designed to tighten international air cargo security by addressing critical vulnerabilities in the supply chain.

The TSA now requires airlines to submit additional and/or advanced data to US Customs and Border Protection (CBP), marking a significant shift in compliance requirements for airfreight cargo. This is the first time such detailed information has been mandated by the TSA, and there is still uncertainty surrounding how this data should be collected and transmitted. Most cargo airlines are currently struggling to meet the new regulations.

The US Airforwarders Association (AfA) said that obtaining some of the extra information requested by the US had created challenges for forwarders.

“The air cargo security landscape is constantly evolving in response to an ever-changing threat environment,” AfA executive director Brandon Fried said. “While the enhancements to the Air Cargo Advanced Screening requirements are not surprising, their implementation has proven more complex than anticipated. Since the government requires airlines to implement these new procedures, much of the necessary information comes from freight forwarders who manage the shipments,

“However, obtaining and sharing some of this additional information has presented practical challenges. Had CBP and TSA involved the forwarding and customs brokerage communities earlier in this week’s rollout, the process might have been more streamlined with our added insights. As a result, this week has been significantly challenging and confusing for airlines, forwarders, and customs brokers alike.”

Korean Air Cargo has made the decision to temporarily halt cargo sales for shipments originating from Europe, Commonwealth of Independent States, and Middle East regions destined for or transiting through the US until November 18, 2024, in response to the TSA regulations.

Sea Freight Schedule Reliability Fell Over the Summer

Schedule reliability for the container liners continues to be under pressure across all routes as volumes have risen and containerships continue to divert around Africa.

Sea-Intelligence’s mid-year analysis revealed that in July 2024, the sector saw its largest year-over-year decline, returning to early 2024 levels. After recovering from pandemic-related disruptions, carriers reached 66.8% reliability in May 2023 and 64% in July 2023. However, reliability first dropped in December 2023 due to Red Sea disruptions, followed by a slight recovery to 55% in May and 54% in June, before falling to just over 52% in July.

On September 5, A.P. Moller-Maersk reported a 66% drop in ships using the Suez Canal as carriers rerouted vessels around Africa. Houthi militant attacks in the Red Sea have caused service disruptions, leading to port congestion, delays, and equipment shortages. Maersk warned that these disruptions are now affecting its entire global network, creating a “cascading impact” on shipping operations.

At Interstate International, we understand supply chain disruption’s challenges and pain points. That is why we provide tailored solutions…to help your business thrive. Follow us on LinkedIn for more international shipping news and trends.