The coronavirus crisis has significantly affected the trade show industry. As governments’ work to contain the virus, a growing number of events have been postponed and cancelled. Today, even the Summer Olympics in Japan, has been postponed. Travel restrictions have made attendance difficult and the industry is working hard to accommodate all constituents. What happens to international cargo when a show is postponed or cancelled?
Exhibitors’ product, booth materials, marketing materials, prototypes, machinery, electronics and all the additional items needed for a successful face-to-face tradeshow, event or meeting are generally transported days or weeks prior to an event. For international participation, be that in the U.S. or abroad, the timeline may be several months in advance.
Being cognizant of international logistics and costs related thereto is important when considering exhibitor refunds, the application of payments to future events and/or re-selling space for future shows.
If you have international exhibitors participating in your event, it is key to understand the variety of issues associated with their goods whether they have arrived at the destination or are in transit. The choices available and the support of show management will help to build a lasting relationship.
What are the possible scenarios?
1. If the show materials arrived in an ocean full container and are not yet unloaded, it may be possible to have the carrier return the intact container back to its foreign origin. This will incur additional transportation expense but eliminates the risk and expense of physical handling of the items.
2. If the shipment has already been unloaded from an ocean container or delivered to a consolidator’s facility the customs broker may file export documentation, rebook the freight and return it to origin without clearing it through Customs. You don’t need to pay import duties on show materials if they are being immediately exported.
3. Exhibitors may arrange for customs clearance of the goods, pay duties and deliver the goods to a distributor for sale in the local market.
4. In the case of postponed events, exhibitors should seek information on storage options with the general service contractor or Exhibitor Appointed Contractor. The goods will either need to be cleared through Customs first or held in bond at a bonded warehouse.
5. If better options don’t exist and the value of the goods is low, as a last resort exhibitors may consider having the goods destroyed. If the goods haven’t cleared through customs, they can be destroyed under Customs supervision, eliminating the duty obligation. If cleared through Customs, your distributor or freight forwarder can arrange for product destruction that eliminates additional storage expenses.
For perishable goods, the options become limited to local distributors or destruction.
It’s important to understand that there will be unanticipated costs with any of the options available. The pandemic may be covered by contractual Force Majeure provisions. Transport rates are in flux trending to historic high levels. Exhibitors’ previously negotiated transport quotations are unlikely to be usable. As a result, return fees may be more than double the original cost estimates. Show management’s relationship with their official forwarder and broker will be pivotal to clients receiving best pricing, service and assistance.