10+2 Rule Could Stymie Exhibitors

New federal regulations for shipping freight via ocean liner could make it more difficult for international exhibitors to ship their freight to U.S. tradeshows.

The regulation, known as the 10+2 Rule, was one of many enhanced security measures implemented by the U.S. Dept. of Homeland Security to secure U.S. borders following the events of Sept. 11.

“We need that type of security,” said Phil Hobson, president of freight forwarder Port Elizabeth, N.J.-based Phoenix Intl. Business Logistics, “but it's an additional barrier to the process.”

The new rule went into effect Jan. 26, although Hobson said it won't be fully enforced for another year.

“It's only going to apply to the international exhibitors with sea freight shipments,” he added. Exhibitors shipping booths or other components by air won't be affected.

The new regulations require importers to submit detailed information about their cargo at least 24 hours before it is loaded into a ship at the foreign port. Failure to follow the new rule could result in fines of up to $5,000 per violation and shipping delays.

Hobson said he and other freight forwarders are able to assist tradeshows and their international exhibitors.

“The challenge is that they have to know,” he added. “Any red light will stop the shipment from being loaded.”

Phoenix Intl. Business Logistics works with exhibitors from several shows, including Natl. Trade Productions' Coverings and the AMT – Assn. for Manufacturing Technology's Intl. Manufacturing Technology Show, to ship freight to the U.S. that is too heavy to be cost-effectively shipped by air.

Jeanette Mucha, director of national sales for Rogers Worldwide, another freight forwarder, said of the changes, “It's going to be very, very difficult.”

She added a lot of the information already was required for customs entry in the past, but it did not need to be nearly as detailed as it will be in the future.

Rogers Worldwide works with exhibitors from the Offshore Technology Conference, Intl. Home & Housewares Show and Kitchen/Bath Industry Show & Conference. Mucha said most freight from international exhibitors is shipped by air. However, one pavilion at last year's OTC required 11 ocean liner containers.

“It is more economical for them to ship ocean freight,” she added.

Both Hobson and Mucha said, to sidestep detrimental effects because of the new rule, shows need to work to educate their international exhibitors well in advance.

Peter Eelman, AMT vice president of exhibitions and communications and show manager of the biennial IMTS show, said that's what he plans to do for the 2010 event.

“It's definitely something we're working (on) with our freight forwarder,” he added.

Eelman said he's fortunate that the show is biennial because it gives him and his staff more time to spread the word among exhibitors about the new rule. The last show, held Sept. 8-13 at Chicago's McCormick Place, had a 1,233,878 net square foot showfloor with 1,803 exhibitors and 92,450 professional attendees.

Eelman said about 35 percent of the equipment on the showfloor was shipped from outside the U.S. and about 80 to 90 percent of it came by ocean liner.

“IMTS stuff is too big to ship by air,” he added.

Jennifer Hoff, COO of Natl. Trade Productions and show manager for Coverings, which has large shipments of stone shipped via ocean liner by international exhibitors to its show, also said education is the show's strategy.

While the rule won't have a big impact on this year's show, Hoff said, “For 2010, we're going to make sure we do a whole campaign to make sure the exhibitors understand (the changes).”

NTP's also going to do marketing during TS², which it owns, and through its partnership with the Intl. Assn. of Exhibitions and Events to create awareness, Hoff said.