Freight charges payable in China are now subject to a new six percent tax, after expansion of China’s Value Added Tax (VAT) on Aug. 1. According to a news advisory by U.S.-based global logistics service provider BDP (here), industry can expect an “application of 6 percent for air and ocean export freight shipments where freight costs are paid in China.” However, trucking and warehousing rates will remain unaffected, BDP said.

The Federal Maritime Commission released a notice of the filing of the following agreements under the Shipping Act of 1984. Interested parties may submit comments on the agreement to the Secretary, Federal Maritime Commission, Washington, DC 20573, within 10 days.

The Federal Maritime Commission is revising its rules of practice and procedure, effective July 29, to update and clarify the rules and to reduce the burden on parties to proceedings before the Commission. The key changes are:

The Federal Maritime Commission extended the comment period by 30 days for a proposed rulemaking to add new licensing and financial requirements to Ocean Transportation Intermediaries (OTIs), the agency said in a notice. The proposed rules would create some additional licensing requirements for OTIs, somewhat similar to what is required of customs brokers, and increase the bonding requirements. (see 13053031). The extension came in response to a request from the National Customs Brokers and Forwarders Association of America (NCBFAA), said the FMC. While the NCBFAA requested a 60-day extension, the FMC decided to give a 30-day extension, it said. Comments on the proposal are now due Aug. 30.

In response to several incidents related to the problem, the Pipeline and Hazardous Material Safety Administration put out a safety alert for shippers and carriers on the risks associated with under-odorization of Liquefied Petroleum Gas (LPG). Odorization of LPG is required in certain circumstances, such as non-industrial end use, to allow for leak detection. The alert describes the problem of odors fading over time, and outlines recommended odorization procedures and standards.

The Federal Maritime Commission scheduled a July 17 meeting at 10 a.m. in Washington, D.C. Agenda items include: (1) Briefing on Committee on Maritime Transportation System, (2) Staff Briefing and Discussion of Inflation Adjustment of Civil Penalties, (3) Staff Briefing on Service Contracts that Reference Freight Indices. A closed session includes: (1) Staff Briefing on Economic and Trade Conditions and (2) Staff Briefing on Semi-Annual Meeting with Transpacific Stabilization Agreement Representatives.

The American Trucking Associations said it will host the first ATA Executive Summit on ways to maximize the payback for fleets that make investments in technological advances and data analysis. The summit will be Dec. 4-6 at the Four Seasons Resort Dallas at Las Colinas.

FMC Notice of Agreement Filed (here)

Global air cargo growth continued to flatline in May, broadly following the trend of the last 18 months, according to International Air Transport Association figures. Global freight ton kilometers increased just 0.8% in May compared to a year ago, but capacity grew 2.1%, causing load factors to fall to 44.9% -- the lowest level since the Great Recession. The stall in cargo appears to be due to a softening in growth in developing economies, including China, IATA said. "The Middle East remains a bright spot, and the rate of decline in the Eurozone is easing," said IATA Director General Tony Tyler. "But this is offset by the weakening of expansion in Asia-Pacific."

The International Maritime Organization’s Maritime Safety Committee agreed to restructure IMO’s subcommittees, as part of a review and reform process initiated by Secretary-General Koji Sekimizu. The proposals now go to the IMO Council meeting July 15-19, and to the IMO Assembly meeting beginning Nov. 24 for final approval. New subcommittees would include: Subcommittee on Human Element, Training and Watchkeeping; Subcommittee on Implementation of IMO Instruments (III); Subcommittee on Navigation, Communications and Search and Rescue; Subcommittee on Pollution Prevention and Response; Subcommittee on Ship Design and Construction; Subcommittee on Ship Systems and Equipment; Subcommittee on Carriage of Cargoes and Containers.