Our Week 22 Top Logistics Stories
It’s week 22 and here are three stories you should be updating your customers and prospects on this week. They need your expertise!
Shippers may not be aware of what’s occurring or its importance, so offering your assistance and insights will help you build a stronger relationship with them.
Knowing what’s going on in the market is only half the battle. Your customers need to be told what to do about it and they should hear that from you.
1. The US’s largest trade partner, the EU, became the latest front in the trade war, with Trump announcing but then delaying a new 50% tariff over the past week. The negotiating tactic has given the two sides until July 9 to come to a deal that many feel will at best be the shell of an agreement similar to what the US and UK worked out recently. What happens between the US and China, the EU, Mexico, and Canada represents the most important trade agreements the US has. And, all of them are still up in the air. In other words, trade remains in a serious state of uncertainty.
2. Ocean rates from China to the US have spiked, and vessel capacity is tight thanks to the 90-day reduction on Chinese tariffs. Expectedly, importers are paying rates 40% higher to North America and up to 70% to South America out of China as importers scramble to get products moving. There is a backlog of loaded containers waiting to be loaded as well. High demand is expected to last into the 3rd quarter. That said, it could be worse. Analysts are saying many small to medium-sized companies are still waiting for the tariff landscape to settle down before starting their supply chains fully.
3. A big change is coming for LTL shippers. The NMFC is updating its classification system on July 19 and many experts feel companies are not preparing enough. The change will emphasize density, making it the most important factor in LTL rates. Costs could change for many shippers, so understanding how the changes will impact shipping budgets is important to do now, not once freight invoices start arriving late in July. There is still time for companies to make updates to their packaging and the processes for palletizing their freight that can mitigate the cost increases, or maybe even save money from where they are at today.
Of course, these stories are just a small part of what’s going on in the supply chain space right now. Updating your clients on how this and other information is relevant to their business is a way to provide more value and strengthen your relationships.
If you need help creating more complete and customized updates for emails, blogs, and social media, we can help. Visit www.shippingbrief.com to learn more.