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JUNE 2016
Summer is off to a great start, especially in “Cleveland is Believeland”, where our colleagues and fans are celebrating their first sports championship in 52 years! LeBron James and the Cleveland Cavaliers “brought it home” for their first NBA title. Meanwhile, the rest of the world is focused on soccer, as teams in Europe and the Americas vie for the championships of the Euro Cup and Copa America Centenario respectively.
 
In other world news, the Brits chose independence over the benefits of being part of a large trade union. The outcome of “Brexit” is very controversial, and the immediate reaction to the vote caused the international stock and currency markets to respond negatively. However, consequences may not be as dire as predicted, and we are certain that the UK will negotiate bilateral agreements with the EU to minimize the impact.
 
The long-anticipated Panama Canal expansion opened on June 26, theoretically doubling its capacity. Much larger vessels will be able to pass through the Canal, and it’s expected that 10-20% of total cargo volume will shift from West Coast to East Coast ports. There are some question marks regarding the design, functionality, and safety of the new locks. We’ll soon find out if they stand up to heavy daily use.
 
Implementation of SOLAS is effective July 1, and a consensus approach is slowly emerging from the different shipping lines and port authorities. This newsletter includes an update on the latest developments, and you may also consult our website for more detailed information. 
 
In the meantime, ocean freight rates are holding steady, and airfreight rates have declined as a result of the additional cargo capacity with the introduction of the airlines’ summer schedules. There is a good chance that we will see a spike of ocean freight rates in late July and August of this year as the peak season gets underway. The domestic trucking business has slowed with rate levels being flat. 
 
Digitization of the supply chain is a key focus for many of our partners and clients. We are happy to report that our global portal initiative is on track, and we expect to reach major milestones in September. Stay tuned for more updates as development continues.
 
Last year, EMO Trans launched a summer internship program for students who are enrolled in logistics courses. We resumed the program this year and have placed interns in our MSP and DFW branches. This is an excellent opportunity to groom young talent for future logistics and supply chain careers. 
 
I am pleased to report that our May results were very good, and we anticipate the same for June. We are grateful for your continued support. Vacation season is upon us, and we wish all of you an enjoyable summer spent with family and friends.

All the best,
 
Marco Rohrer
President
Indonesian Holidays
Please be advised of the upcoming Idul Fitri National holidays in Indonesia beginning at close of business on Friday, July 1 until offices reopen on Monday, July 11. Please avoid sending any airfreight shipments during the holidays as they will remain in airport storage until after operations recommence. Sea freight shipments will also be similarly affected over the holiday period. In addition, all trucking operations to and from the ports and airports in Indonesia cease on July 1 and will recommence 4-5 days after the holidays conclude (around July 14-15).
Sky Freight Celebrates 50 Years
Sky Freight, EMO Trans’ network partner in the Philippines for the past 17 years, is celebrating 50 years in business during the month of June. Pictured is Eddie De Guzman, the COO of SkyFreight and son of founder Eduardo De Guzman, who is still very active in the company. The EMO Team in Manila, led by Route Development Manager (RDM) Gloria Legaste, has been housed inside the Sky Freight offices since January 2000.

Pictured: Eddie De Guzman with RDM Director, Tom Bayes.
Management Changes at EMO Trans Vancouver
Tracy Thoburn, President of EMO TRANS Canada is pleased to announce the appointment of David Shamash as the new Branch Manager at EMO TRANS (West Cda) Ltd. in Vancouver effective July 1. David has already joined the office and comes to EMO TRANS with 10 years of experience in the air and ocean freight business in the Vancouver market. He will be heavily involved in not only the branch operations but also on sales activities in and around British Columbia.

Pictured left: David Shamash and Ivy Chan of EMO TRANS (West Cda) Ltd in Vancouver.
David is replacing Jeanette Hellmich who has decided to retire after 39 years in the logistics industry on June 30. "We wish Jeanette and her husband Karl a long, healthy, and well-deserved retirement," Tracy says. David can be reached at our Vancouver (YVR) office, and his email address is D.Shamash@emotrans-canada.com.
EMO Trans' Papua New Guinea Office
EMO Trans' operations in Papua New Guinea (PNG) are going strong! Thomas Klinkhammer, Managing Director of Sales and Marketing for EMO Germany, recently visited and reports that the PNG office is doing well in arranging aviation business for Air Nuigini in Port Moresby in cooperation with the Brisbane office. "We have 12 staff doing air and ocean imports and exports, led by Country Manager Lee Andison (pictured in second photo)," Thomas says.
EMO Trans Chile’s Sales Department Continues Team Tradition
Each year, EMO Trans Chile’s sales team gathers at an off-site location to talk openly, discuss work coming up in the months ahead, and plan successful sales activities. The meeting usually includes lunch and a fun activity.
 
This year, the team visited Indomita Vineyard in Casablanca Valley. Pictured are Cristina Pinto, Richard Asmus, Rodrigo Galiano, and Gustavo Reyes. Manuel Espina Ortiz is the Managing Director.
 
“During the visit, we took a special tour of a very specialized introduction to the vinification of Indómita's premium and ultra-premium wine lines,” Rodrigo says. “We learned about the characteristics of the terroir where the vineyards grow before visiting the modern winery and the imposing tank room and barrel room. The tour ended with a technical tasting of premium wine. These team trips always boost our spirits!”
EMO Trans Miami Advances with Cruise Line Dry Dock Logistics Services
In March and April, EMO’s Miami team took a big leap forward in bringing the company’s brand into the world of cruise logistics – a huge industry that continues to grow with very high demand for value-added supply chain services. During this period, the team supported two Dry Docks for the Celebrity Summit and RCCL Jewel of the Seas at Freeport Bahamas. These projects run 24/7 during an intense 3-4 week period involving multiple geographic locations and hundreds of workers both on and off board the ships. "Our services covered the gamut from Purchase Order Management to Site Delivery and involved all departments in the branch," says Julio Fernandez, who is Regional Sales Manager for EMO's LATAM-Caribbean territory and also oversees Hotel & Cruise Industry Business Development. "More than 150 purchase orders, dozens of sea containers, and numerous air charters were arranged to make sure the required materials reached the ship on time in order to complete the scheduled retrofits."
Beverly Prim has joined Cincinnati’s sales team, and Birte Rice is the newest member of Baltimore’s sales team. Milwaukee welcomed Alyssa Roe to its sales and operations staff. Kenrol Paynter joined Atlanta’s ocean exports department. Boston hired Scott Hettler for its sales team.
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Importer Security Filing (ISF) Enforcement Update
On June 17, U.S. Customs and Border Protection (CBP) issued a notice (CSMS 16-000499) that for all shipments departing for the U.S. on or after June 30, 2016, CBP ports will no longer be required to send liquidated damages claims to CBP Headquarters for review. Also, CBP will phase out the “three-strikes” approach to issue liquidated damages claims against importers’ bonds. For ISF non-compliance, CBP ports will continue to issue cargo holds, as well as initiate liquidated damages claims.
 
CBP measures compliant ISF transactions by:
  • Timeliness – ISF must be on file 24 hours prior to departure from origin.
  • Completeness – all data elements are filed with CBP.
  • Accuracy – data supplied to CBP must be correct. 
Liquidated damages in the amount of $5,000 may be issued for each of the three categories above, up to a maximum of $10,000 per ISF filing. 
 
If you have any questions about ISF requirements, your local EMO Trans office is available to guide you through the regulations.

Food and Drug Administration (FDA) Compliance in the Automated Commercial Environment (ACE)

Starting June 15, 2016, FDA regulated commodities were required to be electronically filed using ACE. With FDA's transition to ACE, new requirements and data elements are mandatory for FDA to determine admissibility into U.S. commerce. The new data elements to be supplied to FDA are: FDA product category, affirmation of compliance statement, and intended use statement. The additional elements help FDA’s review system (PREDICT) screen products offered for import to the U.S. This information will expedite the FDA screening process and determine high-risk and low-risk shipments, or if additional information is required. It is imperative, with ACE and FDA, that the customs broker is provided with the correct FDA-related information to ensure compliance with ACE and FDA regulations. Our brokerage specialists are available to guide you through this process.
 

Useful links:
Bureau of Industry & Security
U.S. Census Bureau’s Foreign Trade Division
C-TPAT
TSA
DHS
Customs and Border Protection
BAF, LSS, and GRIs Effective July 1
SOLAS Forms Now Available
SOLAS: Certain Port Authorities Will Supply VGM
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