UFLPA Update, Drought in Spain, At Risk, and NY/NJ Port October Results.
Your weekly All-Ways round-up of Supply Chain news.
New Entities Added to UFLPA
The Department of Homeland Security (DHS) has added three new companies located in the People’s Republic of China (PRC) to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List.
Any goods produced by COFCO Sugar Holding Co. Ltd, Sichuan Jingweida Technology Group Co., Ltd., and Anhui Xinya New Materials Co., Ltd. will be restricted from entering the US as of today (Dec 11). The above companies have participated in government-sponsored labor transfer programs and meet the criteria to be added to the UFLPA Entity List.
Since enforcing UFLPA in June 2022, the Customs and Border Protection (CBP) has examined more than 6,000 shipments worth upwards of $2 billion.
There are currently 30 companies on the UFLPA Entity List. DHS’s Forced Labor Enforcement Task Force (FLETF) which includes the Office of the U.S. Trade Representative and the U.S. Departments of Labor, State, the Treasury, Justice and Commerce will continue to ensure that all goods entering the US are produced under ethical conditions.
Production Decline
In both 2022 and 2023, droughts have hit Spain greatly affecting olive oil production. Spain produces 45% of the World’s olive oil and 70% of the EU’s.
On top of that, production costs like fuel, electricity, and fertilizer have majorly increased.
The price of olive oil in Spain has increased by 70% this year alone. The price is expected to continue rising because of greater demand than there is supply.
With climate change at play, the Mediterranean region’s temperatures are rising 20% quicker than the global average. More water conservation measures and better irrigation systems need to be implemented to maintain stability in oil production.
New Advisory
Recent attacks on ships by Iran-backed Houthi rebels in the Red Sea and the Gulf of Aden might seem random. Vessels attacked have no apparent connection to Israel.
So why are they being targeted?
In a new advisory released by Ambrey, the maritime security firm cautions carriers to review if vessels traveling through the areas have had any connection to Israel in the last 3 years because the Houthis likely have outdated lists. For example, the Number 9 vessel attacked was operated by Israeli-owner Zim until 2021.
With this new information, about 50% of vessels around the world are potential targets.
Busiest Month
The Port of New York and New Jersey moved 742,571 TEUs in October making it the highest total monthly volume recorded in 2023 thanks to retailers stocking up on holiday merchandise.
Coming in as second busiest US port for October, it still recorded:
📉 6.3% decrease in total volume from October 2022
📉 19.6% decrease in imports from January - October 2023 in comparison to the same period in 2022
📉 1.2% decrease in export in October 2023 compared to October 2022
📉 1.6% decrease in exports from January - October 2023 in comparison to the same period in 2022
📉 16.4% decrease in export empties in October 2023 compared to October 2022
📉 27.5% decrease in export empties from January - October 2023 in comparison to the same period in 2022
📈 9.2% increase in import empties from January - October 2023 in comparison to the same period in 2022