U.S. Import Market Rising from Recent Lows, Backlog Causes Texas to Scale Back Truck Inspections at Border, Union Pacific Wants Review of STB Decision on CP-KCS Merger.

Ocean

U.S. import market rising from recent lows. According to Descartes, U.S. ports imported 2,020,197 twenty-foot equivalent units of containerized cargo in April, down 18% yoy, but up 9% from March and 5% from April 2019, pre-COVID. Volumes are showing “continued consistency with pre-pandemic volume seasonality,” said Chris Jones, executive vice president of industry and services at Descartes Systems Group.

Evergreen hit with shipping complaints. Taiwan’s Evergreen is the latest liner to be hit with a complaint lodged with the Federal Maritime Commission (FMC) and stands accused of failing to stick to its contract. Evergreen has until the end of May to respond to the case filed by CertiFit. The complaint states that Evergreen “initiated a practice of systematically failing to meet its quantity commitments,” under its service contract, and left car-parts supplier CertiFit scrambling onto the highly expensive spot market where they allege that containers were only delivered to the nearest rail yard and not to its own facilities, costing them $750,000. The FMC is currently overwhelmed with record numbers of shipper complaints.

Ports

Port of Long Beach announces plans for offshore wind facility. The Port of Long Beach has announced plans for a floating offshore wind facility “designed to help California and the nation achieve renewable energy goals,” according to gCaptain. The facility, called Pier Wind, will be the largest of its kind at any U.S. seaport and will support the manufacturing and assembly of huge offshore wind turbines. The project will span up to 400 acres within the Harbor District southwest of the Long Beach International Gateway Bridge and will cost $4.7 billion. Construction is scheduled to begin in January 2027, with the first 100 acres operational in early 2031.

Customs

Backlog causes Texas to scale back truck inspections at border. According to a U.S. Customs and Border Protection (CBP) official, Texas officials have reduced the number of inspections for tractor-trailers arriving from Mexico at two border crossings as a result of thousands of trucks sitting in long wait lines. Increased inspections of trucks that began last Tuesday created wait times of “up to 26 hours for commercial traffic at Veterans International Bridge in Brownsville and the Free Trade International Bridge in the town of Los Indios” according to FreightWaves. The inspections are being carried out by the Texas Department of Public Safety (DPS).

Trucking

Buttigieg affirms expanded truck parking high on USDOT agenda. U.S. Secretary of Transportation Pete Buttigieg reaffirmed a commitment to continue expanding access to parking for commercial drivers and acknowledged benefits associated with facilitating more access to parking. During an interview with Transport Topics, he said that “ensuring greater parking availability would respond to safety and supply chain concerns. This is a major issue. And one that we view, not only as a matter of convenience, or fluidity, but really as a fundamental safety issue. When I’m talking to drivers, this is one of the biggest, if not the biggest, issues that I hear about.”

Rail

Union Pacific wants review of STB decision on CP-KCS merger. Union Pacific is asking a federal court of appeals to review the approval of the Canadian Pacific and Kansas City Southern merger made by the Surface Transportation Board. UP had “expressed concerns during STB hearings on the merger that the board needed to impose conditions upon CP and KCS that would ensure competition at interchanges,” according to FreightWaves. In the two-page petition to the court, UP said: “Union Pacific seeks relief on the grounds that the agency action is in excess of the Board’s authority; that it is arbitrary, capricious, an abuse of discretion, and otherwise not in accordance with law; and that it is not supported by substantial evidence. Union Pacific requests that this Court vacate the order under review and grant such additional relief as may be necessary and appropriate.” CPKC told FreightWaves in a response statement: “We don’t know what UP’s argument is, but in our view, the STB conducted a comprehensive, thorough and thoughtful review of the combination which produced the right final decision clearly recognizing the combination’s many benefits.”

Air

Ryanair places massive Boeing jet order. This week, Ireland’s Ryanair signed a multibillion-dollar deal for as many as 300 Boeing jets. The European carrier said it was placing a firm order for 150 Boeing 737 MAX 10, with options for another 150.

International

China’s exports see continued growth streak. China’s imports fell 7.9% yoy, but exports grew 8.5% in April, marking a second-straight month of growth, according to CNBC. China’s trade surplus grew to $90.21 billion in April, up from the surplus of $88.2 billion in March. Economists at Goldman Sachs said this week that softer trade data in April is likely to reflect “residual seasonality” after this year’s Lunar New Year.

Other

Amazon offering U.S. customers $10 to pick up purchases. Amazon is offering U.S. customers $10 to pick up a purchase rather than have it shipped to a home address. Amazon is adamant that the promotion is “not a cost-cutting measure” and that it applies to customers who have never used Amazon Pickup or have not used the service in the last year.