The customs brokers and freight forwarders industries will experience tremendous challenges as well as strong growth in the coming year.
Freight forwarders are already facing challenges involving air cargo security measures, known shipper information and cargo exams. We have recently experienced a change in procedure with the requirement of 100 percent screening for cargo on passenger aircraft. The industry responded well, but it is still difficult coordinating all the processes in a timely manner, and with space limited on aircraft, timing and preparation have become critical to freight forwarders and their clients.
Now, in the face of failed terrorist attempts to bring explosives to the U.S. by air, we are likely to see a substantial push to secure inbound air cargo from overseas. We expect to see requirements for manifest data moved up to pre-departure. And there may be a demand by Customs and the Transportation Security Administration for additional data.
In ocean forwarding, we will face continued space and equipment shortages as President Obama pushes to double exports in five years. How can freight double if there are shortages in capacity and equipment? Shortages last year led to friction between shippers and carriers, and this will most certainly continue into the New Year.
Customs brokers have been challenged for years as the government tries to automate the inbound process. Customs has been trying to get its Automated Commercial Environment process running and must show considerable progress in eliminating system shortfalls and completing ACE’s ability to fully process entries before brokers will consider changing from the current Automated Commercial System platform.
Brokers were love to have the International Trade Data System completed for clients because it would provide a single window for all government agencies and centralize decisions about whether goods can be released. Without that single point, brokers must deal with each agency and particular programs on an individual basis, leading to extra work, extra cost, extra programming and systems that make “release” a complex challenge.