Recent developments, including the looming threat of an East Coast port strike, record-high intermodal volumes, and changes to the de minimis exemption, are creating significant challenges for shippers. Ocean carriers are turning down new U.S. export bookings and imposing surcharges in anticipation of port closures, while air freight capacity remains limited as companies divert cargo to avoid disruptions. Additionally, potential changes to de minimis rules may increase costs and administrative burdens for smaller businesses, though larger players like Shein and Temu are expected to adapt more easily. These factors, coupled with ongoing supply chain congestion and rate volatility, mean that shippers must plan carefully to manage rising costs, potential delays, and capacity shortages during the critical peak season.. Read the full articles below.
Weekly Freight Report: September 20, 2024
September 19th, 2024
‘One Day is Too Long’: Businesses Fret Over Potential Port Shutdown
Businesses are expressing concerns that a potential East Coast and Gulf Coast port shutdown could cause severe disruptions to supply chains and the economy. As the strike threat looms, companies are moving cargo early and diverting shipments to West Coast ports to mitigate potential impacts.
Fed Cuts Main Rate by Half Point, Voices Confidence Inflation Falling
The Federal Reserve cut the main interest rate by half a percentage point, citing progress in reducing inflation and concerns over a softening labor market. Fed officials project further rate cuts and expect inflation to fall to 2% by 2026.
Limited Air Freight Capacity Available for US Port Strike-Driven Cargo Shift
A strike-driven surge in demand for air cargo capacity if ports along the US East and Gulf coasts are shut down from Oct. 1 would come at the worst possible time for an air freight sector that is preparing for a strong peak season with capacity already severely limited.
Peak Season 2024: Projections, and Last-Minute Advice
The 2024 peak season is expected to be slightly stronger than 2023, but supply chain disruptions, rate volatility, and a shortened holiday shopping period will challenge retailers, making flexibility and early planning critical for success.
Temu and Shein Can Weather De Minimis Changes. Others May Struggle.
The White House’s proposed changes to the de minimis exemption could impact Shein and Temu, but experts say these companies can adapt, while smaller businesses may struggle with higher costs and additional customs requirements.
Maersk: Q4 Container Demand to Remain Strong
Maersk expects strong global demand for container shipping into Q4, despite disruptions, with North American and Latin American imports driving growth and ongoing bottlenecks at key ports.
Intermodal Powers to Record Volume
Intermodal volume hit record highs for the week ending Sept. 14, driven by recovery flows and the threat of an East Coast port strike.
Some US Ports Extending Gate Hours Ahead of Strike Deadline
Some ocean carriers are turning down new export bookings from the US and implementing surcharges ahead of potential port closures.
