COVID-19 NEWS CENTER

June 19, 2020

June 19, 2020

PEAK SURCHARGE REVIEW

Over the last couple of weeks, we’ve seen parcel carriers announce peak surcharges in the wake of COVID-19. As always with these charges, they can be a bit confusing to decipher. Here’s what you need to know.

UPS

Effective May 31, 2020, there is now a peak surcharge of $0.30 per package on residential packages and SurePost. This only applies if a client exceeds 25,000 of their average weekly volume in February of 2020 and in any week where Ground Residential and SurePost volume is 110% of February weekly average. This is in effect until further notice.
Effective May 31, 2020, there is now a peak surcharge of $31.45 per package on domestic large packages. This only applies if a client exceeds “more than 500 large packages during the week immediately prior to the applicable invoicing period.” A large package is any package with a length of more than 96 inches or a length and girth combined of more than 130 inches. This is in effect until further notice.

FedEx

Effective June 8, 2020, there is now a temporary surcharge of $0.40 per package on SmartPost packages. This is in effect until further notice.
Effective June 8, 2020, there is now a peak oversize surcharge of $30 per package for all oversize domestic express and ground packages regardless of volume. A large package is any package with a length of more than 96 inches or a length and girth combined of more than 130 inches. This is in effect until further notice.
Effective June 8, 2020, there is now a peak residential surcharge of $0.30 per package on express residential and ground residential for enterprise level accounts who ship more than 40,000 packages per week and whose volume in that same week exceeds 120% of their average weekly volume in February 2020.

Notable Differences

FedEx’s temporary surcharge applies to all SmartPost packages at $0.40 vs UPS SurePost at $0.30 to customers meeting the volume thresholds.
FedEx’s peak oversize charge applies to all US domestic express and ground packages regardless of volume at $30 per package. UPS’s peak surcharge for large packages is $31.45 and only applies if a customer ships more than 500 large packages per week.
FedEx’s peak residential delivery charge of $0.30 per package applies to express residential and ground residential shipments for enterprise level accounts who ship more than 40,000 packages per week and whose volume in that same week exceeds 120% of their average weekly volume in February. For UPS this is included with the SurePost surcharge and only on ground residential, not express residential.

AFS has already identified over $1.3 million in impact for our clients as a result of these surcharges. If you’re unsure how your business will be affected, our team is on hand to assist in evaluating your data and renegotiating your contracts to mitigate any impact you might be facing. For assistance or questions, call us today at 877-242-3383 or send us an email at [email protected].

April 17, 2020

SHIPPING AND FDA REQUIREMENTS FOR MEDICAL AND PPE (PERSONAL PROTECTIVE EQUIPMENT)

Many of our customers have switched gears in their normal operations to come to the aid of those in need of medical and personal protective equipment during the COVID-19 pandemic. If your business is manufacturing and receiving equipment from outside of the United States, please use the following guidelines.

In addition to existing commercial invoice requirements for exports from China, new requirements have been published specifically for medical and personal protective equipment.

Follow new requirements below:

Medical Supplies Declaration Template (on shipper’s letterhead)
License for medical device export (licenses on medical devices business permit)
Certification of medical device registration (declaration form on export of medical device)
Licenses for medical devices production
Passing of testing by related authorities in CN like CMA/CNAS
Certificates issued by the destination side like CE/FDA
Product manual/label
Manufacturer’s business license*
Enterprise production license*
Product inspection report*
Product batch/number*
Product quality and safety book*
Product sample pictures and packaging pictures*

*Required for masks

Order from Chinese Government | Export Medical Material Declaration Template

The information contained herein is based on the latest published guidance from the government in China as of April 10, 2020, which is subject to change at any time.

To clear shipments of PPE and Infrared Thermometers through U.S. Customers, use the following guidelines set by the FDA in additional to normal commercial invoice requirements for PPE’s:
Masks and respirators intended for general household or industrial use are not regulated by the FDA and do not require FDA data elements on the commercial invoice.

Additional FDA requirements for surgical masks and N95 respirators:

Include the FDA product code (for example, 80FXX, 80MSH for medical use, 80NZJ for general public use)

Additional FDA requirements for infrared thermometers:

Include the FDA product code (for example, 80FLL)
Ensure that the thermometers meet all of the performance and labeling requirements outlined in the FDA Enforcement Policy for Clinical Electronic Thermometers
If labeling requirements are not met, customers must provide the following:
- Manufacturer’s registration number (Device Foreign Manufacturer Registration Number) — DEV
- Medical device listing number (Device Listing Number) — LST
- Device Foreign Exporter Registration Number — DFE
- Complete manufacturer’s name and address
- 510(k) premarket registration if the product qualifies (or “substantially equivalent” to another legally U.S.-marketed device or meets ASTM standards as outlined in the FDA guidance document)

The information contained herein is based on the latest guidance from the FDA as of April 10, 2020, which provides policies to help expand the availability of PPE in response to the COVID-19 public health emergency. At any time, the FDA could require additional information not referenced here. Please visit the FDA website for a full list of all guidance documents related to COVID-19; or you may reach out to the FDA by emailing [email protected] or by calling 301.796.0356.

FDA Product Code Builder | How to register and list PPE on the FDA website | FDA labeling requirements | FDA enforcement policy for clinical electronic thermometers

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April 6, 2020

UPDATED: STATES UNDER NON-ESSENTIAL BUSINESS CLOSURES OR SHELTER IN PLACE & FREIGHT CARRIER OPERATIONS

Last month, FedEx Freight announced updates regarding procedures for shipments that are deemed undeliverable. Freight is now automatically returned to the shipper without notification or letter of authorization if deemed undeliverable due to consignee closure. Should a Return Authorization (RA) need to be included with your returned shipments, please work with your carrier account executive to determine the applicable RA. This applies to all carriers.

Please confirm the consignee is open BEFORE scheduling the shipment to avoid added delays and fees.

Here is the latest list of states that have issued statewide, non-essential business closures or shelter in place. If you have a shipment destined for one of these locations, please call the consignee before scheduling a shipment to ensure they are open for business. Additional charges could occur if providers are unable to perform final delivery due to consignee closure.

NOTE: This list DOES NOT include states where closures are only by county or states with only restaurant and bar closures.

Alabama
Alaska
Alberta, Canda
Arizona
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nevada
New Brunswick, Canada
Newfoundland & Labrador, Canada
New Hampshire
New Mexico
New York
New Jersey
North Carolina
Nova Scotia, Canada
Ohio
Oklahoma
Ontario, Canada
Oregon
Pennsylvania
Quebec, Canada
Rhode Island
South Carolina
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin

Click here for a list of businesses that are considered essential vs. those that are considered non-essential as defined by the state of Pennsylvania.

For assistance in carrier negotiation or questions regarding the impact of COVID-19, send us an email at [email protected].

For carrier specific information and the latest COVID-19 updates:

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April 2, 2020

PARCEL CARRIER SURCHARGES ISSUED DUE TO COVID-19

COVID-19 has resulted in several supply chain changes including air network adjustments and increased operating costs. To cover these costs, parcel carriers will begin issuing new surcharges. These surcharges are set to roll out starting April 5 with UPS, followed by FedEx on April 6 and DHL on April 8.

Currently for UPS and DHL, these surcharges only apply to time critical international shipments from China or Hong Kong destined to and billed within the U.S.

FedEx is facing similar challenges in the Americas and as a result, will charge a Temp Fee on International Express Services in response to the COVID-19 impact.

Below is a quick reference for each carrier.

To avoid further disruption and added expense when shipments return to normal, consider renegotiating your carrier contracts now. For assistance or questions regarding the impact of COVID-19, call us today at 877-242-3383 or send us an email at [email protected].

For carrier specific details on these surcharges and the latest COVID-19 updates:

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April 1, 2020

LATEST NON-ESSENTIAL BUSINESS CLOSURES & STATEWIDE SHELTER IN PLACE ORDERS

NOTE: This list DOES NOT include states where closures are only by county or states with only restaurant and bar closures.

Alaska
Alberta, Canda
Arizona
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Montana
Nevada
New Brunswick, Canada
Newfoundland & Labrador, Canada
New Hampshire
New Mexico
New York
New Jersey
North Carolina
Nova Scotia, Canada
Ohio
Oklahoma
Ontario, Canada
Oregon
Pennsylvania
Quebec, Canada
Rhode Island
South Carolina
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin

Click here for a list of businesses that are considered essential vs. those that are considered non-essential as defined by the state of Pennsylvania.

For assistance in carrier negotiation or questions regarding the impact of COVID-19, call us today at 877-242-3383 or send us an email at [email protected].

For carrier specific information and the latest COVID-19 updates:

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March 30, 2020

DOMESTIC CLOSURE & INTERNATIONAL PARCEL CARRIER UPDATES

NOTE: This list DOES NOT include states where closures are only by county or states with only restaurant and bar closures.

Alaska
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Hawaii
Idaho
Illinois
Indiana
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Montana
Nevada
New Brunswick, Canada
Newfoundland & Labrador, Canada
New Hampshire
New Mexico
New York
New Jersey
North Carolina
Ohio
Oklahoma
Ontario, Canada
Oregon
Pennsylvania
Quebec, Canada
Rhode Island
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin

Click here for a list of businesses that are considered essential vs. those that are considered non-essential as defined by the state of Pennsylvania.

Regarding international parcel carrier updates, country specific mandates from the government will be the same for all carriers. Please note that FedEx has created a new COVID-19 landing page.

All carriers are still operational around the world as they are part of critical infrastructure. However, more countries and cities have suspended service and local governments have different views on critical infrastructure.
- - India: In complete lockdown. No service from any carrier and no imports or exports or domestic movement of goods.
  - South Africa: Currently suspended as the government restricts carrier services. All carriers are applying for exception as essential service provider.
  - Europe: Still operating within some cities/regions on suspension due to outbreak and local airport closures.
  - Bolivia: Suspended service for UPS and FedEX, DHL.
  - Peru: Huge backlog of undeliverable. All packages are being staged in Miami until Peru can manage the volume – UPS, FedEx, DHL.
All carriers have suspended service guarantees.
- - In order to save costs, customers should only be using end of day services.
UPS and FedEx have a peak surcharge for APAC payers for imports to US and Europe due to increased volumes and lack of commercial capacity.
- - UPS: Applies to both packages and freight.
  - FedEx: Currently only applies to freight – expected to include packages this week.
UPS will hold packages for 9 days if the US receiving location will reopen in that time frame. If receiving location is closed indefinitely or more than 9 days, UPS will return the package. FedEx is still operating under normal return policy – 3 attempts then return to Shipper.

During these times, it’s crucial to play close attention to these updates to save time and money for your business. If you have a shipment destined for one of these locations, please call the consignee before scheduling a shipment to ensure they are open for business. Additional charges could occur if providers are unable to perform final delivery due to consignee closure.

For assistance in carrier negotiation or questions regarding the impact of COVID-19, call us today at 877-242-3383 or send us an email at [email protected].

For carrier specific information and the latest COVID-19 updates:

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MARCH 26, 2020

UPDATED: STATES UNDER NON-ESSENTIAL BUSINESS CLOSURES OR SHELTER IN PLACE & FREIGHT CARRIER OPERATIONS

FedEx Freight has announced updates regarding procedures for freight shipments that are deemed undeliverable due to consignee closure. Normal operating procedures are for the delivering terminal to handle any refused freight through a disposition process that requires authorization from shipper and typically requires freight to be stored by the carrier for several days. However, in the current environment that process will not sustain as terminals would quickly turn into warehouses.

Effective immediately and until further notice, freight will automatically be returned to the shipper without notification or letter of authorization if deemed undeliverable due to consignee closure. All normal fees will apply and additional charges could occur. Therefore, it is crucial to confirm the consignee is open BEFORE scheduling the shipment.

Here is the most recent list of states that have issued statewide, non-essential business closure or shelter in place. If you have a shipment destined for one of these locations, please call the consignee before scheduling a shipment to ensure they are open for business. Additional charges could occur if providers are unable to perform final delivery due to consignee closure.

NOTE: This list DOES NOT include states where closures are only by county or states with only restaurant and bar closures.

Alaska
California
Colorado
Connecticut
Delaware
District of Columbia
Hawaii
Illinois
Indiana
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Nevada
New Mexico
New York
New Jersey
Ohio
Oklahoma
Ontario, Canada
Oregon
Pennsylvania
Quebec, Canada
Rhode Island
Vermont
Virginia
Washington
West Virginia
Wisconsin

Click here for a list of businesses that are considered essential vs. those that are considered non-essential as defined by the state of Pennsylvania.

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MARCH 24, 2020

UPDATED: STATES UNDER NON-ESSENTIAL BUSINESS CLOSURES OR SHELTER IN PLACE

NOTE: This list DOES NOT include states where closures are only by county or states with only restaurant and bar closures.

California
Colorado
Connecticut
Delaware
Hawaii
Illinois
Indiana
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Nevada
New Mexico
New York
New Jersey
Ohio
Ontario, Canada
Oregon
Pennsylvania
Quebec, Canada
Rhode Island
Virginia
Washington
West Virginia
Wisconsin

Click here for a list of businesses that are considered essential vs. those that are considered non-essential as defined by the state of Pennsylvania.

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MARCH 23, 2020

INTERNATIONAL CARRIER UPDATES & WHY YOU SHOULDN’T SLOW DOWN ON COST MANAGEMENT

All carriers are still operational around the world as they are part of critical infrastructure. However, as cities, states and countries are put in lockdown, the focus is shifting to pick up and delivery of critical supplies.
FedEx has suspended money back guarantee until further notice.
DHL to suspend service guarantees effective April 1.
UPS has put in a peak surcharge for imports to the US and Europe from China (the volumes are now very high due to no commercial capacity)

Many countries are on lock down in Europe and are limiting essential goods to be shipped only within their country. ie. Germany has banned all masks, ventilators etc to only be shipped and sold in Germany, NO exports. Many parts of India have shut down with only essential products being shipped, again seeing reports of no exports of these materials.

As this situation changes hour by hour, companies are scrambling to maintain their operations. It’s now more important than ever to not only manage but reduce costs. AFS can assist in your carrier negotiation now, so when business rebounds, you don’t lose time or savings when shipments pick back up. While it may not seem like it, now is the time for opportunity.

Call us today for assistance at 877-242-3383 or send us an email at [email protected].

For carrier specific information and the latest COVID-19 updates:

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MARCH 23, 2020

UPDATED: STATES UNDER NON-ESSENTIAL BUSINESS CLOSURES OR SHELTER IN PLACE

NOTE: This list DOES NOT include states where closures are only by county or states with only restaurant and bar closures.

California
Colorado
Connecticut
Delaware
Illinois
Kentucky
Louisiana
Nevada
New Mexico
New York
New Jersey
Ohio
Pennsylvania

Click here for a list of businesses that are considered essential vs. those that are considered non-essential as defined by the state of Pennsylvania.

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MARCH 20, 2020

ATTENTION: DUTY-PAYMENT EXTENSIONS

Due to the effect COVID-19 is having on the Trade industry, U.S. Customs and Border Protection (CBP) is accepting requests for duty-payment extensions. Interested parties should send requests to Director Randy Mitchell by email at [email protected].

CBP expects to issue a Federal Register notice in the immediate future with details on a longer-term, broader extension policy.

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MARCH 20, 2020

CRITICAL INFRASTRUCTURE FOR COVID-19

The Department of Homeland Security has published a list of ” ESSENTIAL CRITICAL INFRASTRUCTURE WORKERS DURING COVID-19 RESPONSE” which includes transportation and logistics.

You can read the full statement from DHS here.

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MARCH 20, 2020

UPDATED: STATES UNDER NON-ESSENTIAL BUSINESS CLOSURES

Here is a list of states that have issued statewide, non-essential business closures. This DOES NOT include states that have ordered only the closure of restaurants and bars or those states where “shelter in place” is only by county or parish. We will continue to update this list as additional announcements are made.

California (mandated)
Connecticut (mandated)
Nevada (mandated)
New York (mandated)
New Jersey (mandated)
Pennsylvania (mandated)

Click here for a list of businesses that are considered essential vs. those that are considered non-essential as defined by the state of Pennsylvania.

AFS continues to encourage our clients to verify that their customers are still able to receive all shipments destined to these states prior to shipping. Additional charges could occur if providers are unable to perform final delivery due to consignee closure.

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MARCH 18, 2020

CARRIER OPERATION UPDATES

“Shelter in Place”

- Some carriers have reported shipment embargoes in areas where “shelter in place” has been issued.

“Safe Social Distance”

- Carriers may not perform Inside Deliveries.
- Carriers may not be getting signatures on Delivery Receipts or BOLs. They will be notating exceptions at delivery. AFS recommends that shipments are thoroughly inspected and exceptions are reported immediately to the carrier. Photographically document shortages or damage.

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MARCH 18, 2020

STATES MANDATE NON-ESSENTIAL BUSINESS CLOSURES

Many states have mandated the closure of all non-essential businesses to mitigate the spread of COVID-19. And we expect others to soon follow suit. Now, more than ever, AFS remains vigilant in monitoring market changes and the effect they have on our clients, carriers and employees. Our role as your partner during this time will not falter and we remain available to assist with any challenges that your business is facing.

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MARCH 16, 2020

AFS ADVANTAGE TRUCKLOAD SOLUTIONS

During this very unique and challenging time, it is vitally important that your supply chain operates without any interruption. Today’s actions in dealing with the spread of COVID-19 will run head on into the influx of pent-up supply from China arriving on both coasts and the beginning of produce season in the West, Southwest and deep Southeast.

AFS Advantage Truckload Solutions and its family of carrier partners are fully staffed and available to help you move any number of shipments that you or your team are having difficulty covering. With offices in Shreveport, Tulsa, Dallas, Atlanta, and Greenville, along with technology that allows all of our associates the ability to work remotely, we are much less impacted by the various local, state or national closure plans.

UPDATE: To provide added capacity, the Federal Motor Carrier Safety Administration announced late Friday, the exemption of certain classes of carriers from Hours of Service regulations.

Here are few additional actions that can be done to decrease the effect of constricting capacity:

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MARCH 13, 2020

INTERNATIONAL STRATEGIC & TACTICAL MEASURES / RISK ASSESSMENTS

Ocean Carriers

- AFS is working with a number of carriers in seeking creative routings particularly for client’s US exports.
- Contracting with niche carriers that have a very good equipment management program due to their dedicated import and export services. ICL is an example in that they have dedicated schedules to unique ports such as PA and NC. The primary east coast ports will suffer when volumes resume. Our estimation is mid-May and early June spikes.
- We are also watching the financial health of our carrier selections. The global stock markets are down; the demand will be well under estimations prior to the Coronavirus and in vertical that has struggled with financial stability for almost a decade.
  - - It is extremely impactful to a customer have cargo trapped in a bankruptcy environment.
    - Should a carrier succumb to the financial challenges, it will exacerbate the equipment issues and container dislocation, globally.
- AFS is also communicating with our entire ocean carrier network to understand their strongest equipment positions in the Ohio region. We have options in Columbus, Cincinnati and Cleveland and will be constantly managing our carrier selections based on customer demand.

Air Carriers

- Similar environment with grounded aircraft, canceled passenger flights that trickle into capacity constraints on cargo flights.
- AFS will work with customers in shipment sizes, pallet dimensions, etc. in an effort to increase the odds for air capacity.

Equipment Availability – Container Dislocation

- Fearing this subject will be the most difficult to manage as there are containers stacked up at ports around the globe due to the transshipments from China. We have had experiences this week whereby there is a shortage of empty equipment in Germany for EU export activity. A 20,000 TEU vessel arrived in Rotterdam with only 2,000 TEUs onboard.
- Thousands of containers are stranded at the major ports in China. The port labor force has returned and working but the backlog of existing loaded containers and the inbound delivery of new imports delayed by the Chinese New Year and then the virus are rendering the ports inefficient. In addition, Shanghai in particular has hundreds of refrigerated containers that have failed resulting in rotting contents. These containers will require special handling/sanitization and will affect global equipment availability.
- Secondary options will be to truck shipments to the nearest available container pool and transload.

Ocean and Air Capacity

- Ocean carriers are “blanking” sailings and eliminating ports of call with little to no notice- we have seen this happen even after bookings were accepted by carrier.
- While global demand remains low, the carriers are imposing this exercise as a survival mechanism. As demand spikes, our estimates are June, the carriers will likely continue this artificial capacity demand as a way to impose significant tariff increases to drive up revenue in view of the Q1-Q2 losses. This is in addition to the IMO 2020 expense that initiated in January.
- All orders should anticipate an extended lead time through end of the year.
- Optimal ocean bookings will be 21-30 days, airfreight bookings 10-14 days.
- Global blanked sailings reference below.
- Vessels are sailing but with very light demand.

Workforce – Force Majeure

- AFS is working very closely with our customers to understand their current environment and on-the-ground feedback from their customers and/or manufacturers. We consistently hear that most companies are up to ~30% productivity, however, a great percentage of the administrative workers are working remotely and executive members are operating the shop floor and producing product.
- Drivers and workers’ temperature are monitored daily.
- A significant amount of workers are working remotely well outside of China. Many of these organizations do not have a contingency plan in place and are improvising to manage priorities.
- Logistics practitioners, compliance and regulatory, banking, etc. are all impacted.
- We are hearing of attempted Force Majeure measures particularly in raw material providers in the interior to China.
- AFS is encouraging global procurement groups to fully vet the financial stability of foreign customers and manufactures. We can assist with Incoterm adjustments if helpful.

AFS will work proactively to build collaborative game plans in the coming weeks and months. Industry experts are suggesting that US exporters will be the last to realize the full impact but we are prepared to address immediate concerns.

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MARCH 12, 2020

A STATEMENT FROM AFS

As the effect of Coronavirus (COVID-19) continues to spread, AFS is keeping a close eye on the situation as it relates to our customers, vendors and our employees.

AFS Logistics prides itself on having the highest quality teams of people who provide the strongest solutions and unparalleled customer service to our family of clients. This means going beyond day to day support. Having stabilized and reliable business continuity plans in place that allow us to shift operations to other AFS locations, in addition to utilizing remote access in the event of a closure, is crucial to the success of our partners.

Fortunately, all AFS locations across the U.S. continue to operate “business as usual.” But as a solutions provider, we must acknowledge the impact COVID-19 is having on our industry and respond appropriately.

AFS’s tenured expertise and supply chain infrastructure allow us to provide uninterrupted support and flexibility as we navigate this unprecedented event with our customers and vendors. We have developed a comprehensive, four scenario strategy to ensure continued service with the quality that you should expect from a partner. Additionally, our integrated technology enables remote access, while our geographically diverse centers of operation create a safety net in the event of a short or long-term disruption. We also continue to monitor the financial health of our carrier selections and the current environment of our customers and their clients and/or manufacturers to proactively address issues before they arise.

Rest assured that AFS is devoted to the well-being of our family of partners and employees and we will continue to provide the quality of support that you deserve.