This week, U.S. Customs and Border Protection announced adjustments to various customs user fees for fiscal year 2025, effective October 1, 2024, including higher costs for permits, processing, and arrivals. The Federal Maritime Commission issued a final rule prohibiting ocean common carriers from unreasonably refusing shippers’ requests for overseas transportation, effective September 23, and requiring annual confidential export policy filings by carriers. Additionally, U.S. warehouse vacancies have risen to 6.1%, but demand is expected to rebound by 2025 due to increased port volumes and proposal activity. Canadian National lowered its financial outlook for the year due to slumping lumber traffic and the diversion of intermodal containers to U.S. ports amid potential rail strike concerns, resulting in a 3% decline in second-quarter operating income. The CrowdStrike outage continues to disrupt supply chains and IT systems, emphasizing the need for robust backup and resiliency plans. Lastly, shipping rates have surged due to recent Houthi attacks in the Red Sea, pushing container costs to nearly $6,000 and prompting oil tankers to seek alternative trades. Read the full articles for comprehensive coverage on these developments.
Weekly Freight Report: July 26, 2024
July 26th, 2024
Shipping Rates Surge Anew on Recent Houthi Attacks in Red Sea
Shipping rates have surged significantly due to recent Houthi attacks in the Red Sea, pushing container costs to nearly $6,000 and leading oil tankers to seek alternative trades to boost earnings, while the ongoing conflict and associated disruptions show no signs of easing.
Customs User Fees See Significant Increase
U.S. Customs and Border Protection has increased various customs user fees and limitations for fiscal year 2025, effective October 1, 2024, including higher costs for permits, processing, and arrivals.
Carriers Limited in Refusing Shipper Requests Under FMC Rule
The Federal Maritime Commission has issued a final rule effective September 23, prohibiting ocean common carriers from unreasonably refusing shippers’ requests for overseas transportation, and requiring annual confidential export policy filings by carriers.
CrowdStrike Disruption Far From Over
The CrowdStrike outage’s impact continues to disrupt supply chains and IT systems, highlighting the need for increased standards in managing third-party updates and reinforcing the importance of robust backup and resiliency plans in the face of IT failures.
House Passes Biennial Water Resources Development Act
The U.S. House of Representatives passed the biennial Water Resources Development Act 2024, which aims to enhance commercial waterway infrastructure and supply chain connectivity through modifications and upgrades, and now awaits Senate approval.
Threat of Canadian Rail Strike Hurts Canadian National’s Quarterly Earnings
Canadian National has lowered its financial outlook for the year due to a slowdown in volume growth caused by slumping lumber traffic and the diversion of intermodal containers to U.S. ports amid potential rail strike concerns, resulting in a 3% decline in second-quarter operating income to $1.6 billion.
US Warehousing Vacancies Rise, But Demand Seen Returning by 2025
U.S. warehouse vacancies have risen to 6.1% but demand is expected to rebound by 2025, driven by encouraging signs such as increased port volumes and proposal activity, according to industry experts.
