Commerce Express Weekly Road Map:
July 16th, 2024
Keeping you informed on the latest news/insights in our industry.
Cracking Down: Joint U.S – Mexico Measures Target Metal Imports Evading Tariffs
Last Wednesday, authorities from the U.S. and Mexico introduced measures to reduce imports of metals from China and other nations that use Mexico to evade tariffs.
The White House stated that President Biden and Mexican President Andres Manuel Lopez Obrador have implemented a policy requiring steel and aluminum imports from Mexico to be subject to 25% U.S “Section 232” tariffs, unless the steel can be melted and poured in Mexico, the U.S., or Canada.
U.S. – Mexico Trade Continues to Increase –
In the last year, U.S. – Mexico trade has seen growth, especially with more manufacturers moving product to North America. In just last year alone, per Freightwaves, the U.S. imported close to $3 billion worth of steel, aluminum and other metals from Mexico through the port of entry in Laredo, Texas.
Nearshoring continues to be a hot topic, as many industry stakeholders predict it to gain continued momentum down the road.
Commerce Blog
Shippers, just like carriers, come in different sizes. As a buyer in the transportation market, they must find compatible carriers to work with. Ones that can find the right service option for a competitive price.
However, in a crowded carrier market, it’s exceedingly difficult for shippers, on their own, to find one true love. For many, it’s a never-ending cycle similar to speed dating: a quick conversation over text (quotes over email), maybe a couple of dates (trial shipments and loads). Anything after could be another text out of the blue (another quote or price check) or, in some cases, a one-night stand (one-off shipment), which afterwards is awkward as neither party feels like it was a step towards an impactful partnership.
Consider Commerce Express Inc. as a matchmaker, a cutting-edge online dating app. Our team presents shippers with several options based on their respective shipping requirements and stated expectations. From there, shippers can choose whichever option holds the most value to them, whether that’s saving on a rate, a faster lead time, or using a familiar carrier.
Can Commerce Express find you the perfect carriers to work with?
Labor: Contract deadline is inching closer (Sept. 30th) as negotiations between the International Longshoremen’s Association and United States Maritime Alliance (USMX) are still far apart. Union President Daggett said the ILA will not seek talks to extend their current contract or looking for assistance from outside parties to get involved in their negotiations.
Diesel Update: This week the average price of diesel decreased by 3.9 cents. Making the average diesel price $3.862, per the U.S. EIA.
Intermodal: A ruling from the Canada Industrial Relations Board is expected by August 9th. The CIRB is deciding whether some critical shipments should be required to continue even in the event of a strike. If one of the parties (the rail unions or their employers) wants to go on strike or have a worker lockout, a 72-hour notice MUST be filed by the initiating party. Additionally, the CIRB may require a cooling-off period to be order after the board makes their decision.
Labor: The International Longshore and Warehouse Union (ILWU Local 1514) gave DP World Canada a 72-hour strike notice scheduled to begin on July 8th at 6:30pm CST. However, the Canada Industrial Relations Board (CIRB) intervened, ruling the union’s strike vote illegal because they did not engage in good faith bargaining during the process. As a result, the strike will not proceed as planned.
Infrastructure: The Port of Los Angeles has reached completion on their Pier 400 rail expansion project, per Freightwaves. Adding 5 tracks to their on-dock yard at APM terminals facility, new crossovers and turnouts, and more.
Intermodal: Border agents in Canada have ratified a new contract, which will last through June 2026. This comes after a tentative agreement was reached on June 11th, after nine days of mediation. The new contact includes wage increases and provisions for shift scheduling and leave time.
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