This week, the European Commission discussed export control measures against Russia with Japan, the UK, and the US, while MARAD announced $8.75 million in grants to modernize 15 small shipyards across 12 states. House Speaker Mike Johnson aims to pass China-related legislation by year-end, potentially revoking de minimis entry for Section 301 tariffed Chinese imports. The cost of shipping a 40-foot container from Shanghai to New York surged to nearly $10,000, raising market bubble concerns. Calls to deem Canadian rail service essential intensified as a potential strike by the Teamsters Canada Rail Conference looms. Mexico reported an average of five cargo truck thefts per day in June, totaling 150 incidents. US importers are also balking at the return of $10,000 container shipping rates. Additionally, the impending threat of a rail strike underscores the need to reevaluate how rail service is categorized in Canada to prevent supply chain disruptions. Read the full articles for comprehensive coverage on these developments.
Weekly Freight Report: July 19, 2024
July 19th, 2024
Ruling on Question Delaying Canadian Rail Strikes Expected by Aug. 9
Canada’s Minister of Labour, Seamus O’Regan Jr., has requested a board ruling to determine if critical shipments should continue during a potential rail strike, delaying any work stoppage until after the decision, expected by August 9.
Mexico Averages 5 Cargo Theft Incidents a Day in June
In June, Mexico experienced an average of five cargo truck thefts per day, totaling 150 incidents, with tractor-trailer thefts increasing by 4.1% compared to the previous year, according to the National Association of Vehicle Tracking and Protection Companies (ANERPV).
As a Strike Looms, Rail Service in Canada Should Be Deemed Essential
The impending threat of a rail strike by the Teamsters Canada Rail Conference highlights the urgent need to classify rail service as essential to prevent severe economic disruptions and underscores the importance of improving infrastructure and coordination between rail, trucking, and shipping sectors for a more resilient supply chain.
Legislative Update: Tariffs, Regulations, Shipping, Critical Minerals
House Speaker Mike Johnson, R-La., aims to pass China-related legislation by year-end, potentially revoking de minimis entry for Section 301 tariffed Chinese imports, while other proposed bills target tariffs on Canadian goods, electromagnets, battery cells, and photovoltaic cells, and impose emissions fees on marine vessels, with additional regulations addressing critical minerals and emerging technology.
US Importers Balk at Return of $10,000 Container Shipping Rate
The cost of shipping a 40-foot container from Shanghai to New York has surged to nearly $10,000, sparking concerns of a market bubble among importers and industry experts due to disruptions in shipping routes and increased demand ahead of peak seasons.
Statement on Export Controls and Restrictions Against Russia
On July 10, 2024, the European Commission hosted a meeting with Japan, the United Kingdom, and the United States to discuss enhancing and aligning export control measures against Russia, emphasizing the need to prevent Russia from accessing materials for its military and holding violators accountable.
$8.75 Million Awarded in Small Shipyard Grants for 2024
The U.S. Department of Transportation’s Maritime Administration (MARAD) announced $8.75 million in grants to 15 small shipyards across 12 states to modernize facilities, increase productivity, and expand local job opportunities.
