VQIP Application, Chassis Supply and Bomb Cyclone.
Your weekly All-Ways round-up of supply chain news.
VQIP
The FDA will open the Voluntary Qualified Importer Program (VQIP) application portal on January 1, 2023, for the fiscal year of 2024.
This program is a voluntary fee-based program that provides human and animal food importers with expedited reviews and importations if they achieve and maintain compliance.
VQIP participants would need to meet certain eligibility requirements like ensuring that the foreign facilities meet the FDA standards through the Accredited Third-Party Certification Program.
Interested in applying for the VQIP benefits during 2024? The portal will close May 31, 2023.
For more information:
- Voluntary Qualified Importer Program
- Submission of VQIP Application User Guide
- Voluntary Qualified Importer Program (VQIP) Informational Webinar Recording
- Public Registry of Accredited Third-Party Certification Bodies
Equilibrium on the Horizon
Marine chassis supply and demand finally seems to be stabilizing going into 2023. The chassis got clogged up because of COVID supply chain disruptions and the resulting influx of imports. Container terminals, rail ramps, and distribution centers became backlogged and manufacturing of new transportation equipment got delayed.
Now that new equipment is expected to be injected into the market and import demand is slowing, inland intermodal fluidity is expected to increase in the first half of 2023. This would help ease up congestion at the ports. On top of that, with the rebalance of the pre-pandemic balance of Americans’ spending on goods and services, freight volume will likely reach a better equilibrium.
Wild Winter Weather
The US and Canada experienced dangerously low temperatures and winter storms which left millions without power or facing rolling blackouts. Power grids were knocked offline due to the high winds.
Heating and power-generation fuel supplies shrunk by roughly 10% from the previous day making it the worst one-day drop in more than a decade. Natural gas production suffered as liquids froze in pipes which caused wells to shut. Domestic demand rose to the highest daily level since early 2019.
This once-in-a-decade storm left around 60% of America under some sort of weather advisory. Because of its size and speed, it achieved “bomb cyclone” status.
Holiday packages are likely to be delayed due to substantial disruptions across the country.