On this week's whirlwind tour of the shipping world, we'll set sail with HMM's ambitious new trans-Pacific express route, then pull into Washington D.C. for a heated debate on rail safety. Next, we'll jet off to explore the global ambitions of U.S. online sellers before trying to predict the potential impact of Trump's proposed tariffs. Finally, we'll roll down the tracks with a deep dive into the metrics that keep America's freight trains running. Let's dive in!
42 Days Across the Pacific: HMM's New Asia-Mexico Express Sets Sail August 16
Mark your calendars for August 16, when HMM and Ocean Network Express kick off their new Far East-Latin America Express (FLX) service. With this new route potentially having your goods zip from Shanghai to Lázaro Cárdenas in just 42 days, you should pay attention.
Shanghai to Lázaro Cárdenas: A 3-Stop Express
The FLX route is refreshingly straightforward. It starts in Shanghai, China, swings by Busan, South Korea, then beelines for Lázaro Cárdenas, Mexico. That's just three stops on a journey spanning two continents. This simplicity could mean fewer headaches and more predictable shipping times for businesses. Plus, it dovetails with HMM's existing New West Latin America services, giving you more flexibility in your supply chain.
Mexico's Rising Star in Global Shipping
HMM isn't alone in spotting Mexico's potential. Since November 2023, we've seen Zim and CMA CGM launch a short sea service from Georgia to Mexico, while Maersk opened a new warehouse in Tijuana. Why all the fuss? It's simple - Mexico's manufacturing sector, especially automotive, is booming. If you're moving goods across borders, these new services could be your ticket to tapping into this growth, whether you're shipping car parts or consumer goods.
House Rail Safety Hearing Puts Industry Under the Microscope
As lawmakers and rail experts gathered in Washington for a major House subcommittee hearing, the spotlight fell on a new rail safety bill and some tough questions for the industry. With recent high-profile incidents fresh in everyone's minds, the hearing quickly became a no-holds-barred grilling session.
New Bill Aims to Pump the Brakes on Safety Concerns
The newly introduced Railroad Safety Enhancement Act is no lightweight proposal. It's packing some serious upgrades, including a $1 billion boost for grade crossing elimination and $100 million annually for high-tech tracking systems on hazardous material cars. But the real kicker? A mandatory two-person crew requirement that has unions cheering and some railroad execs sweating. Rep. Troy Nehls (R-Texas) didn't mince words, calling his fellow Republicans to get on board, citing support from some unexpected corners.
Industry Takes Heat as Critics Question Safety Commitment
While the new bill took center stage, testimony from regulators and union reps painted a less-than-rosy picture of current railroad safety efforts. FRA Administrator Amit Bose dropped a bombshell, stating that Class I railroad safety has "stagnated over the last decade." Union representatives didn't pull any punches either, with one claiming carmen have a measly 44 seconds to inspect an entire railcar. The accusations flew thick and fast: cost-cutting at the expense of safety, pushback against new regulations, and a "move freight, not fix cars" mentality raising eyebrows and blood pressures alike.
U.S. Online Sellers Eye Global Markets: DHL Survey
E-commerce is going global, and U.S. online sellers are ready to join the party. A recent DHL Express US survey of over 1,000 small and medium-sized businesses reveals that 53% see international expansion as their biggest opportunity, among other insights.
From Sea to Shining Sea
Selling abroad no longer means dealing with currency headaches and mysterious shipping times. Today's tech-savvy vendors are conquering these hurdles, making it easier than ever to reach customers worldwide. The EU, UK, Mexico, and Canada top the list of target markets, with China and Southeast Asia not far behind at 14% each. DHL Express US CEO Greg Hewitt highlights a significant change: Initially, international shipments were less than 10% of their business, mainly to English-speaking countries. Now, companies have a much broader global outlook.
Show Me the Money (In Any Currency)
Remember when buying from another country felt like a guessing game? Those days are history. Today's online stores offer transparent pricing in local currencies, accurate shipping estimates, and upfront information on duties and taxes. Hewitt notes that fast, affordable global shipping has changed the game. Now, U.S. businesses of all sizes can easily reach customers worldwide. Whether you're crafting unique items or developing new tech, there's probably a global market for your products.
Trump's Trade Tsunami: How 10% Tariffs Could Reshape U.S. Supply Chains
Imagine you're a business owner, already challenged with keeping your shelves stocked and prices competitive. Now, throw in a new proposal by former President Donald Trump to slap a 10% tariff on all imported goods that could shake the foundation of U.S. supply chains.
The Immediate Ripple Effects on Trade Dynamics
The 10% hike alone is enough to make businesses rethink their supply chains. Yet, an eye-watering 60% on Chinese goods — which, mind you, made up a hefty 15% of U.S. imports in 2023 — would add to the drama. Ports like Los Angeles, already juggling increased trade from Southeast Asia and Mexico, are holding their breath. Meanwhile, U.S. companies are scrambling to stock up before new tariffs hit while eyeing countries like Vietnam and Indonesia as potential new manufacturing hubs.
The Broader Impact on the Economy and Consumers
Beyond the ports and boardrooms, what does this mean for the average consumer? Matt Priest, CEO of the Footwear Distributors and Retailers of America, points out a harsh reality: consumers will eventually take the brunt of added costs at the border. That means everything from your sneakers to your smartphone could see a price increase. At the same time, nonpartisan think tank The Peterson Institute for International Economics warns that such indiscriminate tariffs could trigger a global trade war, not just with China but against trade itself.
All Aboard the Data Train: Tracking Class I Railroads' Speed, Dwell, and Cars in the USA
Have you ever wondered how those massive freight trains chugging across America perform? Let's close this week’s news roundup with a look at the nuts, bolts, and metrics of Class I railroad operations in the United States.
Full Steam Ahead: The Need for Speed
Speed isn't just about getting from Point A to Point B quickly; it's a critical metric influencing the logistics chain. For instance, the average train speed currently stands at 25.3 mph as of the latest update in July 2024. This number doesn't include time spent at terminals, highlighting a focus on movement between locations. Watching how this speed fluctuates over time — from 25 mph in July 2017 to a slight increase in recent years — provides insights into operational improvements or delays that could affect delivery times and planning.
The Waiting Game: Dwell Time and Cars Online
While speed grabs headlines, dwell time and cars online paint a fuller picture of rail efficiency. On July 18, 2024, the average dwell time — how long a car stays at a terminal — was 24.6 hours. However, since July 2017, this metric has swung from 22 to 36 hours. Every hour of dwell time affects inventory management, warehouse operations, and the bottom line. Meanwhile, the number of cars online (255,956 as of July 2024) has fluctuated between 220,000 and 290,000 since July 2017. This figure, representing deployed capacity, directly impacts availability and pricing and can serve as the building blocks of strategy.
Vizion: Riding the Waves of Change
From HMM's Pacific ambitions to the rumble of freight trains across America, commerce never stops moving. However, neither do the challenges. Safety debates heat up in D.C., online sellers eye global markets, and potential tariffs loom. It's a lot to keep track of but Vizion steps in with solutions to give you the upper hand:
- Real-Time Container Tracking: Gain end to end supply chain visibility with real-time container tracking data.
- TradeView: Track shipments 30-90 days in advance, assess 500 million suppliers, and analyze 10 years of historical data to make informed decisions, improve ESG transparency, and optimize your global trade management.
- Port Performance Monitoring: Access comprehensive data on 60+ global ports, including vessel movement times and container gate-out durations.
Ready to take your logistics management to the next level? Book a demo with Vizion today and experience the future of efficient and informed shipping and rail operations.
