Like a chameleon, a successful broker/forwarder has a highly developed ability to adapt to change. We are constantly adapting to continual changes — in trade, transportation, and regulation.
Recent factors pushing change include the America First program, and proposed changes to trade agreements such as the North American Free Trade Agreement. I’m all for improving these agreements to America’s benefit. Brokers will be there to help the trade manage these programs and the changes to come.
A major change has been the quadrupling of the maximum allowed value to be imported under Section 321. Customs has its hands full trying to control the increasing number of shipments under this program. The loss of revenue to the government under this program is staggering. The brokerage community is adapting by working with Customs to add an entry type for these entries in Customs’ Automated Commercial Environment (ACE). Preparation by licensed Customs brokers versus a manifest release increases security and gives all 47 participating government agencies a window into these shipments.
Carrier use of larger ships is a positive change. In the Port of New York and New Jersey, the raising of the Bayonne Bridge, and the deepening of the channel have helped to keep the port competitive. The port’s Express Rail investment is also helping our roads while increasing throughput. The port is ready to face these larger vessels and continue to be a hub for inland points and beyond.
Another key element to 2018 will be the continuing talks for a new International Longshoremen’s Association contract. Early signs are positive; if the parties are able to come to an agreement quickly, it will be a huge benefit to the industry.