This week, Mexico saw a spike in tractor-trailer thefts in April, with 153 incidents reported, leading to increased concerns over cargo security. Concurrently, U.S. intermodal shippers experienced nearly 26% savings under annual contracts in the first quarter, though spot market savings have also risen. Meanwhile, the airfreight sector continues to grow, fueled by e-commerce demand and disruptions in ocean freight, as highlighted by April’s 11% year-over-year increase in air cargo volumes. Additionally, the ongoing Red Sea crisis, exacerbated by Houthi rebel attacks, has forced retailers to rethink their supply chain strategies, opting for longer routes around Africa to avoid the conflict zone. Ocean carriers are also feeling the impact, with canceled sailings and rate increases causing financial strain for shippers. Lastly, a new round of U.S. tariffs on Chinese imports announced by President Biden is set to further disrupt supply chains, echoing the tariff battles of 2018 and pushing businesses to seek alternative routes and suppliers. Read the full articles for comprehensive coverage on these developments.
Weekly Freight Report: May 17, 2024
May 17th, 2024
Biden Expects China to Retaliate to New Tariffs. Here's What That Might Look Like
President Biden anticipates China will retaliate to new U.S. tariffs on Chinese imports, likely targeting different sectors such as American machinery and agriculture, while experts suggest the impact on the U.S. could be significant given the smaller volume of goods exported to China.
Airfreight Rides E-Commerce to Surprise Growth in May
Despite expectations for a summer slowdown, airfreight volumes have continued to grow, driven by robust demand from Asian exporters and Chinese e-commerce platforms, reflecting a significant shift from ocean to air transport due to disruptions and increased shipping costs.
Borderlands Mexico: Tractor-Trailer Thefts in Mexico Totaled 153 in April
In April, Mexico experienced 153 tractor-trailer thefts, averaging about five per day, marking a 7.7% increase from the previous year, with the state of Mexico leading in incidents, and over 70% of cases involving violence.
US Intermodal Savings Showed Little Movement in First Quarter
In the first quarter, US intermodal shippers saved nearly 26% under annual contracts compared to trucking, with spot market savings averaging 17.2%, according to the latest Journal of Commerce Intermodal Savings Index.
Ocean Carrier Cocktail Leaving a Sour Taste in Shippers’ Mouths
The latest round of canceled sailings and general rate increases by ocean carriers has driven up spot rates, causing financial strain for shippers and creating uncertainty in the market, with ongoing diversions and fluctuating demand adding to the complexities.
Navigating the Long-Term Consequences of the Red Sea Crisis for Retailers
The ongoing Red Sea crisis, exacerbated by Houthi rebel attacks on ships, is forcing retailers to reconsider their supply chain strategies, highlighting the need for long-term resilience and diversification amidst growing global disruptions.
