California to Develop Port Data Sharing System, U.S. Government to Remove Border Vaccine Requirements, STB Extends Reporting Requirements for Class I Railroads.

Ocean

Data suggests ocean container import rebound unlikely in 2nd half of 2023. Analysts are projecting that the second half of 2023 will bring a rebound of containerized U.S. import volumes, but some think it’s increasingly likely that U.S. import demand has hit the bottom. Ocean container bookings data from SONAR suggests that U.S. containerized import volumes in 2023 have been trending alongside 2019 levels, which was the last freight recession, according to FreightWaves. See the article for visual graphs and more detailed information.

Ports

California to develop port data sharing system. The five major container ports in California have agreed to work together to launch the “California Port Data Partnership” in a first-of-its-kind initiative headed by the state’s government. According to Maritime Executive, the goal of the initiative is to “jointly advance computerized and cloud-based data interoperability with a common goal of supporting improved freight system resilience, goods movement efficiency, emissions reduction, and economic competitiveness.” It’s the latest in a series of government initiatives launched in response to supply chain disruptions and backlogs from the past few years.

Trucking

FedEx Freight closing 29 service centers. FedEx Freight announced the planned closures of 29 U.S. service locations by August 13 as part of an ongoing efficiency drive. There are currently 371 stations across the FedEx Ground system, and the affected operations will be consolidated into other locations, according to FreightWaves.

U.S. government to remove border vaccine requirements. The U.S. Department of Homeland Security (DHS) announced it will be removing border vaccine requirements. “Beginning May 12, 2023, DHS will no longer require non-U.S. travelers entering the United States via land ports of entry and ferry terminals to be fully vaccinated against COVID-19 and provide related proof of vaccination upon request. DHS intends to rescind these Title 19 travel restrictions in alignment with the end of the Public Health Emergency and the termination of the Presidential Proclamation on air travel.” DHS said in an official statement. Even though this is good news for truckers, the Canadian Trucking Alliance stated that it will continue to “work on several additional border barriers and areas where border policies remain misaligned with a coalition of trucking groups.”

Rail

STB extends reporting requirements for Class I railroads. This week, the Surface Transportation Board extended the temporary reporting period through Dec. 31 that requires Class I railroads to submit employment data and rail service performance to the board. The STB began monitoring the Class Is’ weekly rail service performance data last year after receiving complaints from shippers about “inconsistent and unreliable service from BNSF Railway Co., CSX, Norfolk Southern Railway and Union Pacific Railroad,” Progressive Railroading reports. The STB required the four carriers to submit updates on employee hiring trends, service recovery plans, and weekly and/or biweekly reports on service performance indicators as part of their monitoring.

Air

Cargo shift from MEX to AIFA causing airline concerns. A looming freighter ban in Mexico City is causing carriers operating a mix of air cargo and passenger services to ask for support to stave off supply chain collapse. Full-freighter services from Benito Juarez Airport (MEX) had to move to Felipe Angeles (AIFA) within 107 business days from December of 2022. Carriers are becoming increasingly concerned regarding the capabilities of AIFA and the wider logistics network to facilitate this. “We understand AIFA’s warehouse facilities are modern and well-equipped, but staffing is an issue, with some operators prepared to transfer staff by bus each day to ensure adequate coverage….Carriers will have to decide if they want to move the entire operation, passengers as well as cargo, to the new airport. This would impact interlining and, considering that 62% of cargo arrives at MEX on freighter aircraft, the impact will be quite significant,” Tiaca director general Glyn Hughes told The Loadstar.

Japan Airlines increases cargo fleet. Japan Airlines (JAL) announced that it will add three Boeing 767-300ER Freighters to its fleet to begin supporting its own cargo operations by the end of the fiscal year 2023, the first time in 13 years that JAL will operate its own dedicated cargo aircraft.

International

Apple and other companies shifting manufacturing away from China. American companies such as Apple are looking to shift away from manufacturing products in China, and are instead looking to places like Taiwan, Vietnam, and India as production bases. Electronics maker Quanta Computer, the top contract manufacturer of Apple’s MacBooks, signed an agreement this month to build its first Vietnamese plant. Moves like this to diversify production away from China have been years in the making for manufacturers that have watched wages there rise. Manufacturers are looking to move away from China as costs rise and trade and technology tensions between Washington and Beijing are happening.

Other

Charts show data on cargo flows and future trends. Cargo flows over the past few years have been a sore spot in the industry. SupplyChainDive asked analysts to compile data showing what exactly happened to cargo over the last few years, and where trends will go in the future. See the information here.