---
title: "Freight Market Update: January 1, 2020"
description: "Trade groups fund $5B for zero-carbon ship R&D as 2019 shipper lead times shrink amid soft capacity."
language: en
canonical: https://www.flex.thisisbrew.com/logistics-updates/freight-market-update-january-1-2020/
lifecycle: live
---

# Freight Market Update: January 1, 2020

## Ocean Freight Market Update

## Ocean Market Update January 1, 2020

## Freight Market News

**Trade Orgs Propose Rapid Decarbonization R&D Team**
Eight trade organizations have joined forces to fund $5 billion in research and development of zero-carbon emission ships, ready for commerce by the early 2030s. [Hellenic Shipping News](https://www.hellenicshippingnews.com/shipping-companies-propose-crash-program-to-reduce-co2/) reports technology to fully eliminate CO2 emissions from international shipping does not yet exist.

**Shipper Lead Times Shrank in 2019**
The past year saw a decrease in shipper lead times of .14 days or 5%, reflecting the year’s pattern of soft capacity conditions and spikes in urgency due to geopolitical factors and seasonal roll-outs. With tighter long-term capacity, [FreightWaves](https://www.freightwaves.com/news/shippers-gave-carriers-less-notice-in-2019) reports, lead times increase so shippers can better ensure availability.

**Piracy Ravages Open Seas at Year’s End**
A horrific wave of pirate attacks off the Nigerian coast, tracked by [Lloyd’s List](https://lloydslist.maritimeintelligence.informa.com/LL1130488/BW-Gas-LNG-carrier-targeted-by-pirates-off-Gulf-of-Guinea), includes a double hijacking attempt of a Suezmax tanker on Christmas Eve, open fire on a liquified natural gas carrier on December 28, and an attempted hijacking by pirates who boarded a handymax bulk carrier on December 30. [Lloyd’s List](https://lloydslist.maritimeintelligence.informa.com/LL1130455/Piracy-alert-in-Singapore-Strait-after-spate-of-attacks) also reports a string of five armed robberies in the Strait of Singapore.

## Customs and Trade Updates

**Unit of Quantity Change Requests**
Starting day one of 2020, a unit of quantity (UOQ) is required to be reported for all HTS numbers that were previously marked with “X.” A Customs and Border Patrol (CBP) committee will review requests from industries to change the UOQ. The CBP [request form](https://www.cbp.gov/sites/default/files/assets/documents/2019-Dec/UOQ-Change-Request-Fact-Sheet_12-20-2019.pdf) needs to be submitted by March 15, 2020. 

**USTR Requesting Comments on Section 301 List 1 Exclusions**
The second set of tariff exclusions from List 1 of the Section 301 tariffs is set to expire on March 25, 2020. The USTR issued [a notice](https://ustr.gov/sites/default/files/enforcement/301Investigations/Request-for-Comments-Concerning-the-Extension-of-Particular-Exclusions.pdf) requesting comments on whether the exclusions that were previously granted should continue for another year. They will be accepting comments between January 15 and February 15.  

****For a roundup of tariff-related news, visit **[Tariff Insider](https://www.tariffinsider.com/)

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