Freight Market Roundup
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Rates from Shanghai to LGB/LAX increased 25.79% from last week and Chicago increased 6.2%. GRIs were implemented for a number of carriers which is where the impact is coming from.
Capacity is getting tighter due to the blank sailings which will help keep the rates inflated but probably not quite as high as they are as of today. We are starting to see bookings roll due to the “capacity crunch” steamship lines have created with their blank sailings.
Annually rates are down 17.8% to LGB/LAX from January and down 9.31% to Chicago (from Shanghai). Year-over-year rates to LGB/LAX are 27.46% higher than last year and 0.76% higher to Chicago.
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TRUCK WAIT TIMES RISE TO 5 HOURS ON MEXICO-U.S. BORDER
The reassignment of Customs and Border Protection (CBP) officials from ports of entry between the U.S. and Mexico is altering logistics in border cities. Prior to reassignment, trucks waited an average of one hour to cross the border. Now, the average wait time is five hours.
Despite Donald Trump walking back his threats to close the U.S.-Mexican border, local businesses in El Paso, Texas, are already seeing the effects of truck congestion and border delays.
CHINA WILL CONTINUE TO SUSPEND TARIFFS ON U.S. IMPORTED CARS
China announced in December 2018 it would remove an additional 25% tariff on U.S. imports of cars for a three-month period beginning Jan. 1. This latest announcement is an extension of that change.
"It is a positive reaction to the U.S. decision to delay tariff hikes and a concrete action adopted (by the Chinese side) to promote bilateral trade negotiations," the State Council said, according to Reuters.
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ROUND 2 OF 301 EXCLUSIONS
Our Customs team worked hard to identify which customers will benefit from the round 2 of 301 exclusions. Your Account Manager will contact you if you can benefit from the new list of product exclusions.
Supply Chain Solutions is proactive and has your back. Our Customs team started analyzing all HTS Codes as soon as the list came out without our customers having to request so.
If you are not a customer of Supply Chain Solutions, we would love to start a conversation with you and see how we can add real value to your business together. Click here and we'll contact you.