This week, escalating Red Sea turmoil, prompted by US and British strikes on Houthi targets in Yemen, has led Chinese exporters to seek alternatives, notably the China-Europe Railway Express, as container volumes through the Suez Canal drop dramatically. In legal news, a court has denied Temu’s request to conceal supplier identities in its lawsuit against Shein, marking a significant ruling in the fast fashion industry. Meanwhile, the Port of New York and New Jersey reports a surge in total volume for 2023, surpassing pre-COVID figures and highlighting robust trade activity. A new report urges Congress to collaborate with the Biden administration on China tariff exclusions, emphasizing strategic tariff management. Red Sea disruptions are flagged for potentially exacerbating port congestion and inflation, with significant economic implications for global supply chains. In Mexico, truckers are organizing a nationwide strike against rampant cargo theft, indicating serious concerns in cross-border trade and logistics. These developments reflect the dynamic and sometimes turbulent nature of international trade, underscoring the need for agility and resilience in supply chain strategies. Read the full articles below for in-depth analysis and perspectives.
Weekly Freight Report: February 9, 2024
February 7th, 2024
Red Sea turmoil drives Chinese exporters to rail, other alternatives
Recent US and British strikes on Houthi targets in Yemen have heightened concerns about the impact on container shipping in the Red Sea, prompting shifts to alternative routes. Amid rising tensions, container volumes passing through the Suez Canal have plummeted by 90%, with some Chinese exporters opting for the China-Europe Railway Express, impacting rates and reshaping trade dynamics.
Court Refuses to Shield Identities of Suppliers in Temu, Shein Lawsuit
A federal court in the District of Columbia recently refused Temu’s “unusual request” to shield the names of third-party fast fashion suppliers in a case that it is waging against Shein, with the court finding that “while the potential harm to Temu’s third-party.
Total Volume for 2023 Exceeds Pre-COVID Numbers
The Port of New York and New Jersey saw a 3.4% increase in total volume in December 2023 compared to December 2022, contributing to a year-end total that exceeded pre-COVID levels by 4.4%. Import volumes rose by 7.5% in December, while exports increased by 1.4%, positioning the port as the second busiest in the nation for loaded imports and exports in 2023.
Congress May Want to Consider Working with Administration on China Tariff Exclusions, Report Says
A report recommends Congress and the Biden administration work together to set guidelines for granting and extending exclusions under Section 301 tariffs on Chinese goods. Trade Representative Katherine Tai stresses the need for a strategic review of tariffs, considering their impact on supply chains and addressing challenges such as circumvention while maintaining openness to key trading partners’ goods.
Red Sea disruptions may drive port congestion, inflation
Stakeholders warn of economic risk due to Red Sea disruptions during a House subcommittee hearing, citing potential congestion, inflation, and supply chain challenges. Rerouted vessel services have led to increased transit times and shipping rates, prompting some shippers like Ikea to report delays and constraints on products, while concerns about congestion and rail imbalances persist.
Borderlands: Mexico’s truckers plan nationwide strike against cargo theft
Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Mexico’s truckers plan nationwide strike against cargo theft; EV maker Lucid expands its U.S. manufacturing facility; Grainger announces new distribution center near Houston; and supply chain services provider Kinaxis opens Dallas office.
