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Sea freight prices could drop by as much as 25% within a few months if Red Sea attacks are controlled, DP World's deputy chief executive told Reuters. The shipping giant emphasized the impact of disruptions caused by Houthi attacks on vessels, which have forced companies to reroute ships around Africa, significantly increasing costs.

Since November 2023, Yemen’s Iran-backed Houthi forces have targeted over 100 ships in the Red Sea. According to the report, these attacks have created widespread safety concerns and led to rising freight prices as companies avoid the area. Narayan believes stopping these attacks would allow vessels to resume using the Red Sea and Suez Canal, cutting transportation costs. “If we can stabilize the region, we could see prices falling by 20 to 25% within the next two to three months,” he said.

To address the disruptions, the U.S. has taken action against entities linked to the Houthis. On January 17, the U.S. sanct…

A new study by Descartes Systems Group highlights how supply chain leaders rely on technology to manage rising global trade complexities. Of the 978 leaders surveyed, 74% see technology as a critical part of their growth strategy, with this number increasing to 88% for companies forecasting over 15% growth in the next two years. Key challenges cited include tariffs, trade barriers, supply chain disruptions, and geopolitical uncertainty.

Global trade intelligence was identified as the most valuable technology for the next two years, with 36% of respondents ranking it first. This was followed by global trade analytics (27%) and supply chain mapping (26%). Industries such as manufacturing, wholesale, finance, and retail ranked global trade intelligence as the leading tool for adding value to their operations.

“For companies in diverse industries, global trade has become much more complex, with many new challenges to traditional business operations,” said Jackson W…

PITT OHIO, a leading transportation and logistics company, has announced a new express less-than-truckload (LTL) service to six key cities along the Texas border. Shipments will be consolidated at their Cincinnati terminal and then sent directly to Laredo, El Paso, McAllen, Brownsville, Eagle Pass, and Del Rio. PITT OHIO is partnering with Averitt Express for the final delivery leg.

“This operational setup brings significant improvements over the traditional hub and spoke system utilized by many national carriers,” said PITT OHIO’s EVP and Chief Marketing Officer, Geoff Muessig, “By consolidating freight at a single terminal and dispatching directly to the destination cities, we reduce handling, thereby minimizing the risk of damages, shortages, or lost freight. Our streamlined approach ensures faster transit times, offering superior service levels compared to most national carriers.”

Muessig also highlighted the environmental benefits, stating that m…

On his first day back in office, President Donald Trump is holding off on imposing new tariffs. Instead, he is directing federal agencies to study trade relationships with China, Canada, and Mexico. According to an incoming administration official, a memo set to be issued Monday will focus on trade deficits, unfair trade practices, and currency issues.

Trump, who had pledged steep tariffs during his campaign, including a 60% tariff on Chinese goods and a 25% surcharge on imports from Canada and Mexico, is taking a more measured approach. The memo will assess compliance with the 2020 trade deal with China and review the U.S.-Mexico-Canada Agreement (USMCA), which is set for evaluation in 2026.

“Some duties would tear up long-standing trade agreements and threaten to upend supply chains,” said trade experts, emphasizing the potential fallout from immediate tariffs. However, the memo signals a slower process, with investigat…

U.S. Customs and Border Protection (CBP) has proposed a new rule to improve the tracking and management of low-value shipments, also known as de minimis shipments. The rule, Entry of Low-Value Shipments (ELVS), would require importers to provide more information about these packages. CBP says this change will make it easier to spot illegal shipments such as counterfeit goods, dangerous drugs, and other contraband.

“Every day, the men and women of CBP interdict goods that threaten the health and safety of Americans as well as the economic vitality of our country,” said Pete R. Flores, CBP’s Senior Official Performing the Duties of the Commissioner. “This proposed rule will help to give us some of the tools we need to address more of these threats.”

CBP currently processes over 4 million low-value shipments into the U.S. daily, but existing rules don’t require much data from importers. This lack of information makes it harder for CBP to identify high-risk shipmen…

Topics covered in this podcast included: how the concept and practice of ReGlobalization evolves from traditional globalization; the impact of tariffs on logistics planning and operations; and implications of Artificial Intelligence within logistics, among others. 

Jim Tompkins is an international authority on designing and implementing end-to-end supply chains. He has started 15 businesses that have done over $2 billion in worldwide revenue during his 50-year career, has worked with private equity, designed countless industrial facilities and supply chain solutions, and enhanced the profitable growth of numerous companies, giving him an insider’s view into what makes great companies even better.

In 2020, he founded Tompkins Ventures LLC, a global hands-on solutions network that helps companies address the five major factors for business success: Leadership, Capital, Technology, Supply Chain/Facilities and Procurement. He previously spent 40+ years as foun…

Now that the 2024 U.S. election is behind us, U.S. companies have a lot of questions about what international trade and trade compliance might look like in 2025 and beyond.

Post-election transitions always bring uncertainty, especially around potential shifts in Washington’s trade policies. And that seems to be even more true this year, with tariffs being a major plank in the winning party’s platform.

In the meantime, there is daily news about possible trade actions that the new administration will take or consider. Keeping up with the latest news and speculation is difficult, but staying compliant in an ever-changing trade environment can be time-consuming and costly.

How U.S. importers consider and prepare for international trade in 2025 depends on actions taken and how tariffs and other trade restrictions are implemented. Let’s take a few vital areas into closer consideration and explore a few possibilities and how shippers can prepare.

Trade reme…

A major strike at ports along the East and Gulf coasts has been averted after the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) reached a tentative deal on a new six-year contract. The agreement was announced Wednesday, just days before the January 15 deadline.

The deal still needs to be ratified by union members and USMX representatives. The two sides will continue operating under the current contract until the votes are held. No dates for these meetings have been announced yet.

The ILA and USMX expressed satisfaction with the outcome in a joint statement. “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong.”

Negotiations had stalled over port automation, and the union was concerned about jo…

With President-elect Donald Trump set to return to the White House later this month, there has been a fair amount of attention focused on his plans regarding tariffs, a key cornerstone of his economic agenda.

As reported in LM, in posts made on his Truth Social platform in late November, Trump said that, effective January 20, when he takes office, that he will sign an Executive Order, calling for a 25% tariff on all U.S.-bound imports from Canada and Mexico, as well as an additional 10% tariff on all U.S.-bound imports from China.

Regarding tariffs placed on Canada, a December Bloomberg report stated that Prime Minister Justin Trudeau noted that should the U.S. impose new tariffs on U.S.-bound Canadian imports, Canada will respond with retaliatory tariffs, as it did in 2018, following tariffs placed on Canadian steel and aluminum, a move called successful by Trudeau in the report.

“Let’s not kid ourselves in any way, shape o…

As 2025 begins, the global logistics landscape remains uncertain, with challenges ranging from geopolitical instability to climate-related disruptions. Supply chains must evolve to not just survive but thrive in the face of these hurdles. Businesses are increasingly adopting strategies to make their supply chains antifragile, able to adapt, and grow stronger through disruption.

The concept of an antifragile supply chain emphasizes flexibility, preparedness, and technology. Companies like Maersk are leading the way with innovative solutions, such as their Gemini East-West network launching in early 2025. “Disruptions are inevitable, but the right planning and partnerships can minimize their impact,” said a Maersk spokesperson.

Here are five strategies to make supply chains antifragile in 2025:

1. Build Resilience with Flexible Networks

Networks that can adapt quickly are less likely to experience domino effects from disruptions. Maersk’s Ge…

Contract negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) are set to resume on January 7, raising hopes for a resolution before the current deal expires on January 15. Bloomberg reports that the talks aim to avoid a potential strike that could shut down major ports on the US East and Gulf coasts, which handle about half of the nation’s container volumes.

The key sticking point remains using semi-automated rail-mounted gantry cranes at port terminals. While the equipment is allowed under the current agreement and already in use at some terminals, ILA President Harold Daggett has taken a firm stance against further automation, calling it a threat to dockworker jobs.

USMX argues that modernization, including automation, is essential for the competitiveness of US ports and the broader economy. In a December 20 statement, USMX emphasized, “Modern technology dramatically increases the amount of car…

The Biden Administration has released the first-ever Quadrennial Supply Chain Review, a detailed report assessing vulnerabilities in the United States’ critical supply chains. The review highlights the risks of foreign reliance on foundational semiconductors, key components used in industries such as defense, healthcare, and telecommunications.

“A resilient and secure supply of foundational semiconductors is critical to U.S. national and economic security,” the report states. These chips power essential sectors, including medical devices, critical infrastructure, and defense systems.

The review outlines recent steps to boost domestic chip production, including investments under the CHIPS and Science Act and tax incentives for manufacturers. Notable projects, such as Texas Instruments’ facilities in Texas and Utah and GlobalFoundries’ operations in Vermont and New York, are already underway to strengthen the supply chain for legacy chips.

The administrati…