Common Mistakes Made By Less Experienced International Exhibitors

With the U.S. trade show industry continuing its recovery from the pandemic, our company handled a significant uptick in the volume of international exhibitor shipments this year.

As the official freight forwarder and U.S. Customs Broker for 130 trade shows, we’ve witnessed and welcomed the growth in these shipments across industries.

Current indicators for first quarter 2024 point to a positive shipping climate with relatively stable pricing and no port congestion. While this is great news for the industry, we're concerned about less knowledgeable international exhibitors who may struggle with mismanaged shipments. This year we've observed exhibitors, and even country pavilions, become fearful that their booths would not arrive in time to meet move-in dates due to Customs delays or late-arriving shipments. To be clear, this most often occurs when exhibitors forego using the services of the trade shipping specialist appointed by show management.

PIBL had a record year of “rescue shipments” - circumstances where show organizers turned to us to assist a frantic exhibitor encountering problems when our company was not the original freight forwarder or broker on record.

After 25 years in the industry and one long, difficult pandemic, we want to see international exhibitors succeed. In this issue, we share some of the common mistakes made by exhibitors and their freight management companies.  

• INACCURACIES Inaccurate information appearing in required import documents will cause Customs delays and possibly physical examination of a container.

• LATE FILING A late Importer Security Filing for sea freight shipments can trigger a Customs inspection.

• SHORTCUTS Taking shortcuts with shipping-related documents will increase the likelihood of a Customs cargo hold - whether it’s not filing every form or not filling in documents completely, such as failing to report the company name and address of each manufacturer on the invoice. Some exhibitors and some less diligent brokers choose shortcuts and then experience Customs delays.

• THE LEAST EXPENSIVE SHIPPING OPTION IS NOT ALWAYS THE BEST Show managers have specific timing for move-in and move-out of booths. The official freight forwarders for the shows adhere to their schedule. However, common carriers (that can appear to be less expensive) may not operate in accordance. 

• THINKING FOOD SAMPLES AT SHOWS AREN’T SUBJECT TO THE SAME REQUIREMENTS AS OTHER IMPORTED FOOD FDA strictly regulates the import of food to the U.S. and that includes food samples destined for trade shows. Certain food categories require longer lead times for Customs clearance or specialized handling. All food importers must appoint a U.S.-based Foreign Supplier Verification Programs (FSVP) Importer to verify that food entering the country meets food safety standards. Exhibitors need to be aware of the additional time involved with these processes.



• NOT KNOWING OR FAILING TO REPORT TO A CUSTOMS BROKER if products being imported are subject to antidumping or countervailing duties (AD/CVD). According to U.S. Customs and Border Protection, “These duties are intended to offset the value of dumping and/or subsidization, thereby leveling the playing field for domestic industries injured by unfairly traded imports."

We believe there is a continuing—perhaps expanding—need for education on these matters as more international exhibitors seek a presence at shows here. We're working closely with show management to inform international exhibitors about shipping and Customs issues and urge that related conversations occur soon after confirming show participation. While we offer generalized guidance to all exhibitors through highly detailed show manuals, we invite exhibitors to speak with us directly as they consider their options.      

Phil Hobson, President, PIBL

ON OUR RADAR

GLOBAL TRENDS IN SHIPPING 2024

PIBL keeps an informed eye on supply chain logistics around the world and here we highlight just a few developments on our company’s radar.

Maritime Industry Moves Towards

Further Digitalization

The maritime industry is moving towards wider digitalized operations for better efficiency, sustainability, and performance. Starting in January 2024, ports around the world will need to use the Maritime Single Window system for electronic exchange of data regarding a vessel’s port arrival, stay and departure. It’s expected that the system will improve the reliability of information that can be provided to customers. The industry is mounting advances in the integration of technology, using Information of Things (IoT) to provide real-time data on cargo status, environmental conditions, and engine performance among other factors. With the growing digitalization of the maritime industry - the use of artificial intelligence, block chain technology and big data analytics - we’ll see increased investment to prevent cyber attacks.

Sustainability at Sea

A CNBC article last month explored the financial impacts of climate change on marine shipping, while providing a glimpse of sustainability initiatives taken by one of the world’s leading container ship companies. Reporting on a recent study, CNBC stated, “The impacts of climate change on ports alone, from damage to disruption, could cost the shipping industry up to $10 billion annually, according to an RTI study which was reviewed by the Environmental Defense Fund.” 

With 90% of the world’s trade carried by water, environmental concerns range from carbon emissions to extreme climate events including higher sea levels and drought conditions such as the lack of rainfall affecting the Panama Canal. Maersk, the world’s second largest container ship company, introduced a new green-ethanol powered container ship this fall which is said to emit less carbon dioxide than current vessels. “We firmly believe that climate change poses a great threat to the shipping industry and the consumer overall...,” commented Narin Phol, Maersk’s President for North America to CNBC. Maersk has also taken steps to use electrically powered vessels, to upgrade its weather-monitoring system, and to adjust its ship design in consideration of changing climate conditions. The maritime industry is targeting zero-carbon shipping by 2050.

Contract Negotiations Underway

with East Coast Ports

According to Harold Daggett, President of the International Longshoremen’s Association (ILA) which represents 45,000 dockworkers at 36 East and Gulf Coast ports, contract negotiations are underway with the U.S. Maritime Alliance (USMX) regarding the current labor contract set to expire in September 2024. These negotiations involve dockworkers on the east coasts of the U.S. and Canada, the Gulf Coast, the Great Lakes, Puerto Rico and inland waterways. Although the contract expiration date is nearly a year away, ILA recently indicated that it will hold firm on its pledge to avoid a contract extension which leaves open the possibility of a coast-wide strike in October 2024. Among the hot button issues are wages and automation.