Freight Forward: US Retailers Upgrade Import Projections

Welcome to Freight Forward, where each Monday, I’ll recap what happened in supply chains the previous week through JOC.com articles and additional sources and also what to expect for the week ahead.

I’m Cathy Roberson, a supply chain writer and researcher. For this weekly series, I serve as a research analyst for the Journal of Commerce (JOC), for whom I identify trends, provide thoughts and input into stories, and assist with air express and parcel last-mile queries.

Ocean

• US retailers upgraded import projections through August amid the temporary pauses in effect on the so-called reciprocal tariffs implemented by the Trump administration writes Laura Robb. The June Global Port Tracker (GPT) shows the first upgrade to US import projections since February, before the first round of tariffs were announced in April.

• Spot ocean rates on the eastbound trans-Pacific diverged last week, with prices to the US West Coast softening amid a fresh capacity injection and the East Coast market still showing strength writes Laura Robb and Bill Mongelluzzo.

“The rates for cargo coming into the Pacific Southwest are going down, but pricing to the US East Coast is actually going up,” Stephen A. Nothdurft, vice president of sales for North America at the forwarder MOL Consolidation Services, told the Journal of Commerce. “It’s due to all of these extra-loaders and services returning into rotation [to Los Angeles-Long Beach].”

• Sea-Intelligence expects niche ocean carriers to provide 4.6% of the weekly capacity in the trans-Pacific by the end of June. The draw for the niche carriers is the strength in spot freight rates according to Sea-Intelligence writes Michael Angell.

•  The Panama Canal Authority (ACP) could build and operate a long-stalled container terminal as part of a wider logistics hub development near Panama City on the Atlantic Ocean side of the canal writes Keith Wallis.

“We are studying the possibility of reactivating a project where the Panama Canal Authority would develop a logistics hub, which would include various terminals, within the canal area that safeguards neutrality for the canal and all of the shipping companies navigating the waterway,” ACP Administrator Ricaurte Vásquez Morales said.

Project Cargo and Break Bulk

•  Conventional power project cargo is changing, with both weight and size increasing, Satish Singh, CEO of Mumbai-based freight forwarder Total Movements, told the Journal of Commerce writes Carly Fields.

• Regional variations and emerging trends are shaping the movement of vital industrial components. While some markets grapple with the effects of trade disputes and fluctuating demand, others are experiencing unprecedented growth driven by green initiatives, robust domestic infrastructure development and the necessities of defense writes Carly Fields.

Air

• Air Cargo News: Amazon Air Cargo expands in South America with Avianca partnership

• Stat Trade Times - Additional UPS flight boosts India-Europe air cargo capacity

Inland

• JOC Column - Cargo origin will determine trade war winners and losers among US coasts, Larry Gross

•  A court in Georgia has ordered DAT Freight & Solutions to temporarily stop providing factoring service until a hearing can be held on whether DAT is violating a non-compete agreement with OTR Capital writes Bill Cassidy. DAT is being sued by OTR.

• Union Pacific Railroad (UP) will launch a new insurance program on July 1 offering shippers up to $250,000 in liability coverage against cargo theft writes Ari Ashe. https://www.joc.com/article/union-pacific-will-offer-shippers-enhanced-liability-coverage-for-cargo-theft-6024575

•  Trucking executives are increasingly confident the freight market is approaching “equilibrium,” not due to higher demand but because they believe capacity is about to be cut faster by factors such as tougher enforcement of US regulations writes Bill Cassidy.

“I think we’ll get back to net growth in the second half,” said Nicholas Hobbs, J.B. Hunt’s COO and president of highway and final-mile services.

• Canadian National plans to invest $170 million in its Illinois rail operations, including the development of a long-planned logistics park outside of Chicago writes Michael Angell.

•  Norfolk Southern Railway (NS) will temporarily increase storage fees on cargo owners who do not retrieve their containers promptly beginning July 7 writes Ari Ashe.

•  TRAC Intermodal, DCLI and FlexiVan Leasing, the US’ top three lessors by fleet size, respectively, began unstacking chassis shortly after the Trump administration last month announced a 90-day pause on the 145% tariffs on Chinese imports writes Ari Ashe.

“Our current utilization, our working fleet, is rather soft,” said Val Noel, chief operating officer of TRAC. “But we think this could be a little bit like a tsunami, and we want to have extra capacity to make sure we don’t have any service disruptions.”

 Parcel

• Supply Chain Dive: FedEx bumps up fuel surcharge rates and is applying its delivery area surcharge to new ZIP codes.

• Global News: Canada Post workers will cast their votes on whether to ratify a final offer in the ongoing labor dispute, despite union opposition.

That's it for now. Thank you for reading! For readers interested in reading more Journal of Commerce stories, click here to subscribe. Enter code FFNL20 at checkout to receive a 20% discount on any subscription option. (Note that this is only for first-time subscribers or for upgrading a current subscription). What did I miss? Have a question? Let me know in the comments. I’ll be checking back throughout the week to answer questions, address comments, and share additional insights. In the meantime, here’s wishing everyone a good freight week ahead.

-Cathy