All The Supply Chain News You Need To Know 2.11-2.15
Northeast LTL capacity tightens as carriers scramble to fill gap left by NEMF bankruptcy. New England Motor Freight, a 40-year staple of the Northeast and Mid-Atlantic, stunned the shipping world Monday by filing for Chapter 11 bankruptcy liquidation. With about $400 million in annual revenue, NEMF and its companies will represent the largest U.S. trucking shutdown since Consolidated Freightways, Inc. went out of business in the fall of 2002, according to FreightWaves. NEMF’s undoing was due to key account losses, the national truck driver shortage, “onerous” labor contracts, an aging fleet, and competition from non-union carriers, the company wrote in its filing.
Trucking spot rates drop to pre-capacity crisis levels. For the first time since September 2017 national average van rates fall below $2. Rates closed out January at $1.96 which is 28 cents lower than at the same time in January 2018. Rates have continued their downtrend in February as they closed out the week of 2/9 at $1.91.
US Container imports remain strong ahead of March 1 tariff deadline. Heavy retail import volumes have analysts predicting volumes will rise 4.1% over the first half of 2018. 2018 was already a record year for imports at 21.8 million TEU. “With trade talks with China still unresolved, retailers appear to be bringing spring merchandise into the country early in case tariffs go up in March,” said Jonathan Gold, vice president for supply chain and customs policy to Supply Chain Dive. “We are hopeful that the talks will succeed, but until the trade war is behind us, retailers need to do what they can to mitigate the higher prices that will inevitably come with tariffs.” March 1 is the deadline for $200 billion in US tariffs on Chinese goods to raise from 10% to 25%.
CMA CGM proposes $1.65 billion deal for Ceva Logistics. The French steamship line is aiming to take full control of Swiss-based Ceva Logistics in order to bolster its push towards end-to-end logistics solutions. “By developing a logistics offering to complement our maritime activity, we will be able to propose a full ‘end-to-end’ service to our customers,” said Rodolphe Saade, CMA CGM’s chairman and chief executive, as reported by The Wall Street Journal. ”The board of Ceva Logistics is fully aligned with this friendly offer.”
Maersk keeping up with the Joneses via Vandegrift acquisition. On Tuesday, Maersk announced its plans to acquire the Customs Broker. “Vandegrift’s expertise and reputation enables us to place a trusted advisor in front of our customers to design and build individualized Customs Brokerage and Compliance programs that identify risk and provide solutions. This customer advocate role, coupled with our supply chain assets and global scale creates winning end-to-end solutions for companies intent on competing better in 2019,” said Narin Phol, Regional Managing Director of Maersk North America, according to AJOT.
Autonomous trucking startup TuSimple crosses billion dollar valuation mark. The San Diego and Beijing-based company boasts the largest fleet of autonomous trucks testing on US and Chinese highways. The trucks currently ride with a safety driver in the event of any systems failures, however the company plans to do away with all human operators by 2020. With driver wages accounting for 43% of total operating costs, according to the American Transportation Research Institute, autonomous trucks could present significant long-term savings for carriers. “The combination of technical excellence and an impressive leadership team has propelled the company to unicorn status,” said Colin Xie, vice general manager of investment at Chinese social media company Sina Corp., which participated in the latest funding round with Hong Kong-based investment firm Composite Capital Management, reports Trucks.com.
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