Freight Market Roundup
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OCEAN RATES ARE GOING DOWN
Rates are down 3% from Shanghai to the US West Coast & 0.5% to Chicago this week. Overall this month rates are down 23% to the US West Coast & 10.5% to Chicago from February.
Rates are still up from 2018 at this time. Year over year rates are up 31% to the US West Coast & 2% to Chicago compared to this time last year.
We are anticipating a GRI being implemented on April 1. However the market, likely, will not allow this to stick given the overall reduction in trade between China & the US.
If you have any questions or would like to request a quote, contact us here.
BRAZIL AND US TRADE COMMITMENTS
President Trump and Brazil's president Jair Bolsonaro committed to building a new partnership between the two countries. The two leaders agreed to deepen their partnerships in different sectors like security, aerospace, tourism, and trade.
"The Presidents instructed their teams to negotiate a Mutual Recognition Agreement concerning their Trusted Trader programs, which will reduce costs for American and Brazilian companies".
USTR GRANTS SECOND ROUND OF PRODUCT EXCLUSIONS
Late last year the Office of the U.S. Trade Representative submitted a Federal Register Notice to grant nearly 1,000 product exclusion requests from tariffs that went into effect on July 6.
On Monday, March 25th, CBP issued the round 2 of exclusions. Our customs team worked hard to identify which customers this will apply to. They are always looking for your best interest and will contact the customers that can benefit.
IMO LOW SULPHUR 2020 MANDATE
As we announced last week, the IMO Low Sulphur Mandate requires fuels cap to be reduced from the previous allowed 3.5% to 0.5% in less than a year.
Why does this matter to you? Rates may increase in the last quarter of 2019, leading to a potential peak season to avoid these costs and congestion.
TRUCKING: PROCESS IMPROVEMENTS AND SAVINGS
Last week we talked about how market data is showing that current national trucking volumes are very similar to early March 2018 even though capacity is better and spot rates are down 8 – 12%. In 2019 we are noticing that the economy is growing, but not as quickly; capacity is better, but not highly available; and rates will increase, but not as high as 2018.
Did you take a look at our guide showing you 3 areas of your business to review in order to find process improvements and savings?
It's worth it! Check it out here.