The Weekly Freight Report for October 14th, 2021
The Top 5 Stories in Freight
Here’s what’s happening this week:
- New bill of lading changes aim to protect cargo in Mexico
- Raw material and commodity inflation skyrockets
- Eastern ports help to relieve west coast congestion
- Transportation employment numbers see improvements
- Long wait times slow cargo movement at LA/LB ports
The hottest stories in freight can be found here, in the Weekly Freight Report:
1. New billd of lading changes aim to protect cargo in Mexico
The Mexican Tax Authority (SAT) is increasing regulations in hopes of reducing theft of cargo and movement of smuggled goods through Mexico. The SAT will require a bill-of-lading (BOL) supplement for all goods moving throughout Mexico regardless of transportation method. Trial enforcement begins Dec. 1 with full enforcement starting Jan. 1, 2022. Lack of correct documentation could carry a fine of up to $4,500. If you’re shipping cross-border freight, read up on the SAT’s requirements here.
2. Raw material and commodity inflation skyrockets
A new Gartner global survey shows that more than 50% of organizations have experienced inflation in raw materials, commodities and, you guessed it… freight. With input price inflation on the rise and impacting margins, almost 74% of CFO’s are concerned about lower profitability in 2021.Read more on adjustments being implemented to save profitability here.
3. Eastern ports help to relieve west coast congestion
East coast ports are enticing shippers to use their ports as Los Angeles and Long Beach ports experience continued delays. Numerous ports along the east coast are investing capital to increase capacity… but, investing billions into port infrastructure isn’t enough as there is still a bottleneck with chassis shortage impacting drayage. Shippers will have to make a choice… wait for the freight… or pay a premium at alternative ports to get their cargo quicker. Find out which ports shippers are utilizing to re-route freight to here.
4. Transportation employment numbers see improvements
Transportation employment numbers see improvements With the general U.S. unemployment decreasing to 4.8%, the transportation sector unemployment lags at 5.7%. Yes, labor pains continue to be a struggle for the industry, but according to the latest Bureau of Labor Statistics, there are slight improvements. September 2021 reported a 50% decrease in transportation unemployment from September 2020… but it is still higher than the 2019 pre-pandemic rate of 3.3%. Read the full labor report here.
5. Long wait times slow cargo movement at LA/LB ports
The Ports of LA/ Long Beach are the most inefficient ports out of 22 of the world’s largest ports. The leading problem? Lack of labor. The U.S. economy cannot employ individuals fast enough given there are additional bottlenecks with increased demand for goods. Currently, approximately 60 ships are waiting almost 2 weeks to unload cargo between the Port of LA and Long Beach. Read up on how the labor shortage has impacted turnaround times.
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