Hanjin Shipping files for Bankruptcy Court Protection

Dear All,

Please be advised that Hanjin Shipping, the seventh largest steamship line by capacity, has filed for bankruptcy
court protection.

The impact on the shipping industry will be significant but please be assured that we are working on contingency plans
where O.T.S. Astracon and our customers could be affected. In light of this, we are working to get upcoming shipments
rebooked on new carriers to eliminate unnecessary risks. For cargo that is already enroute, we are taking whatever
steps are necessary to ensure timely release and delivery of shipments.

It is anticipated that this situation will cause capacity issues with other carriers as space becomes tight. We will monitor
this closely in order to reduce potential delay as much as possible.

Due to the impact this will have on the market, it could lead to increased rates through General Rate Increases (GRIs)
and a possible Peak Season Surcharge (PSS). As always, O.T. S. Astracon will work on mitigate these charges to the best
of our ability to keep your cargo moving at the most competitive rates possible.

This situation is very fluid but we will be monitoring it closely and keep you posted. If there are any questions in the
meantime please feel free to reach out to your account representative.

Posted in Uncategorized

California’s Blue Cut Fire Disrupts Transportation

Source: NCBFAA | August 22, 2016, 7:32AM EDT

Last week the San Bernardino, CA Blue Cut Fire severely hampered train and truck traffic out of the ports of Los Angeles
and Long Beach. BNSF Railway provided the following statement:

BNSF resumed operations on our Cajon Subdivision, which runs between San Bernardino and Barstow, California. The
ongoing wildfire situation has limited service to two of our three main line tracks through this area with additional safety
measures, including speed restrictions, in place. BNSF crews continue to inspect and evaluate our third main line track,
and we hope to have all three main lines in full operation as soon as possible.

While trains are moving again through the Cajon Pass, the 30 hour service outage has created a substantial backlog of
traffic that will take time to clear. Customers may experience delays of 36 to 48 hours on shipments moving through this
corridor.

BNSF was made aware of the fire and immediately deployed water trucks to assist emergency personnel. The water
trucks were used to water down our infrastructure including our railroad ties and bridges. As a result of this effort and that
of fire personnel, our infrastructure had minimal damage.

Posted in Uncategorized

Wildfire causes rail delay in Southern California

Dear All,

As a result of the Blue Cut Fire in Southern California, please be aware that BNSF and UP Railroads have reported service
interruptions and operational delays between 36-72 hours for east and west bound traffic in Southern California.
The estimated time for reopening of the tracks is yet to be determined.

If there are any questions please feel free to reach out to your account representative.

Posted in Uncategorized

General Rate Increase from Far East to USA and Canada, effective September 1st, 2016

Dear all,

Please be informed of the following General Rate Increase notification, effective September 1st, 2016:

General Rate Increase from Far East to USA and Canada

Effective Date: September 1st, 2016 (cargo receipt date at origin)
Scope: From all origins in the Far East
To all USA and Canada destinations

GRI: USD 510 per 20′ (all types)
USD 600 per 40′ (all types)
USD 675 per 40’HC (all types)
USD 760 per 45′ (all types)

The General Rate Increase will apply to Dry & Refrigerated cargo as well as to special cargo in Open Tops and Flat Racks.

Posted in Uncategorized

PierPass Increase, effective August 8, 2016 (Ports of Los Angeles and Long Beach)

Dear All,

Effective August 8, 2016 the Traffic Mitigation Fee (TMF), also known as PierPass, for the ports of Los Angeles and Long Beach will increase as follows:
20ft: $70.49 (all types)
40ft/40ft HC: $140.98 (all types)

Quote from PierPass press release:

Beginning August 8, the TMF will be increased to $70.49 per TEU (twenty-foot equivalent unit) or $140.98 per forty-foot container.
The adjustment falls under Rule 7 of WCMTOA’s Marine Terminal Schedule No. 1, which states, “Beginning in mid-2012, the Fee shall be
adjusted annually to reflect increases in labor costs based on Pacific Maritime Association maritime labor cost figures.” The PMA negotiates
and administers maritime labor agreements with the International Longshore and Warehouse Union (ILWU).

If there are any questions please feel free to reach out to your account representative.

Posted in Uncategorized

General Rate Increase from Far East to USA and Canada, effective August 1st, 2016

Dear all,

Please be informed of the following General Rate Increase notification from carrier, effective August 1st, 2016:

General Rate Increase from Far East to USA and Canada

Effective Date: August 1st, 2016 (cargo receipt date at origin)
Scope: From all origins in the Far East
To all USA and Canada destinations

GRI: USD 800 per 20′ (all types)
USD 1000 per 40′ (all types)
USD 1125 per 40’HC (all types)
USD 1266 per 45′ (all types)

The General Rate Increase will apply to Dry & Refrigerated cargo as well as to special cargo in Open Tops and Flat Racks.

Posted in Uncategorized

Importer Security Filing (ISF) Enforcement, effective July 1st, 2016

Dear all,

Please be advised that effective July 1st, 2016 for any late, incorrect or incomplete ISF filing, USCBP will no longer be required to send requests to Headquarters for review. USCBP Ports may commence issuing liquidated damages against Importers that are not in compliance. The USCBP announcement is as follows:

isf

Current ISF penalties include:
• $5,000 per late ISF
• $5,000 per inaccurate ISF
• $5,000 for the first inaccurate ISF update
• A party can be fined up to two times (or $10,000) for each ISF/transaction
• Nii exams ordered at the port of discharge
• Do not load message issued at origin by carrier

If there are any questions please feel free to reach out to your account representative.

Posted in Uncategorized

SOLAS Update

Dear all,

As per the Journal of Commerce, “With just days before the SOLAS (Safety of Life at Sea) container weight rule takes effect, ports, marine terminals and container lines are coming closer to creating a system that will use pre-existing weighing processes to alleviate the burden on U.S. exporters.”

The U.S. Coast Guard maintains the stance that the existing U.S. laws and regulations for providing verified container weights are equivalent to the new requirements for SOLAS which goes into effect on July 1, 2016. The guidance from operation ports, carriers, terminals, and nations have been varied and prone to change. They are trying to rectify this and as further details become available we will share them with you.

In the meantime, please be aware that additional fees may be assessed for VGM Submission and Weighing Services, but these fees are still being negotiated and may vary by country, port, and terminal.

As more details become known we will share them with you.

If there are any questions please feel free to reach out to your account representative.

Posted in Uncategorized

Panama Canal Draft Restriction: Suspended

Dear All,

Please find the below updated information from carrier in regards to the Panama Canal draft restriction, which has now been suspended:

With immediate effect the Port of Panama Canal Authority has suspended draft restrictions at Panama Canal. The maximum authorized
draft for vessels transiting the Panamax locks reverts to 12.04 m (39.5 ft) Tropical Fresh Water (TFW). Panama Canal transits will
therefore not experience delays related to draft restrictions.

If there are any questions please do not hesitate to reach out to your account representative.

Posted in Uncategorized

SOLAS (Safety of Life at Sea) effective July 1, 2016

Safety of Life at Sea (SOLAS)

The International Maritime Organization (IMO) container weight verification rule, issued pursuant to the International Convention for the Safety of Life at Sea (SOLAS) goes into effect on July 1, 2016. The U.S. is a party to the SOLAS treaty. The VGM (Verified Gross Mass) rule is intended to provide a reliable, verified container weight to reduce risk of injuries and loss of life to workers involved in ocean transport operations and to ensure that ships are loaded safely and operate within their structural and stability safety limitations.

OTS Astracon is committed to helping our shippers to prepare for the implementation of the new global safety standards.

The amendment to the IMO enforcing the SOLAS, require a packed container to have shipper-verified gross weight as a condition for loading onto a ship for export. Because the shipper is uniquely situated to know and report the weight of the container, the shipper determines the VGM for the loaded container using one of the two methods provided under SOLAS regulations:

1. Weighing the packed container using a calibrated and certified equipment OR
2. Weighing all packages and cargo items, including the weights of pallets, dunnage and other securing material to be packed in the container and adding the tare weight of the container to the sum of the single weights, using a certified method approved by the competent authority of the State in which packing of the container was completed.

A person duly authorized by the shipper must certify the VGM by signing the shipping document (first and last name) and providing it to the Ocean Carrier by the VGM cut off time. It is determined that the VGM cut off time is at noon of the VGM cutoff date. If the carrier does not receive the VGM prior to the cut off time, the container cannot be loaded aboard the vessel – “No VGM, No Load” policy. Under the IMO’s International Convention for Safe Containers (CSC), containers with weight higher than the maximum payload will be prohibited from being loaded on board vessels.

The mandatory information required for VGM submission are:

1. Booking Number
2. Container Number
3. Verified Gross Mass
4. Unit of Measure (Kg or Lb)
5. Authorized Person’s Signatory (First and Last Name in Capital letters)

As we get further updates, we will continue to keep you informed on this new regulation.

Posted in Uncategorized

**** Due to TSA Regulations - All cargo that is tendered for transportation - is subject to inspection .****
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