Shipping rates from China to the U.S. neared all-time highs this week – the shipping cost for a 40-foot container from Shanghai to LA is close to $10,000—representing a 229% increase from one year ago. Globally, a composite index of 8 major trade routes saw a 333% increase from one year ago. Rates are expected to increase.
These higher rates, while beneficial for container shipping lines, are putting pressure on importers in terms of higher costs. Higher costs uneasily absorbed by importers will likely be reflected in higher retail prices, which could result in inflation. Additionally, supply chain constraints due to COVID still hinder economic growth.
Interested in learning more? Read the full article on American Journal of Transportation here.
At 12:01 AM Eastern time Friday, the United States plans to increase tariffs from 10% to 25% on Chinese imports. Trump and Beijing plan to talk prior to the tariff hike sometime today. China has stated they will retaliate if the tariff hike goes through.
If the tariff increase goes through, both the U.S. and China's imports and exports will likely be affected by both the tariff hike and retaliatory measures that may be taken on either side.
Read more here.
ATTS Logistics is proud to announce that we warehoused and transported 50,639 books to in-need communities in Big Ugly, West Virginia. We partnered with Lake Zurich, IL, residents, Shari and Vince Gullo, and West Virginia nonprofit, Step by Step, to ship books to this rural area. The Gullos organized a book drive and collected over 50,000 books with support from Lake Zurich-area residents over the past six months.
The children in Big Ugly, West Virginia have limited access to reading materials, and the nearest library is over 40 miles away. The Gullos have visited the area multiple times over the last few years and wanted to support literacy, access to reading materials, and the love for books within the Big Ugly community.
We are so happy to help play a part in this generous endeavor and cannot wait for the children of Big Ugly to experience the beauty of literature!
If Donald Trump wants his new US-Mexico-Canada Trade Agreement to be enacted, he may have to lift the aluminum and steel tariffs imposed on Mexico and Canada. The nations, along with US lawmakers, are pushing Trump to eliminate the tariffs if he wants the agreement to be approved.
Find out more details here.
A lawsuit has been filed against carrier YRC Worldwide by the U.S. government. The U.S. Department of Justice notes that "[YRC Freight Inc., Roadway Express Inc., and Yellow Transportation Inc.] systematically overcharged the government for freight carrier services and made false statements to the government that hid their misconduct" for shipments dating from September 2005 to October 2013 (U.S. Department of Justice, Office of Public Affairs, 2018).
YRC Worldwide is accused of overcharging the U.S. Department of Defense for heavier shipments versus the lighter accurate weights of the shipments. YRC is also alleged to have covered up their overcharging practices and failing to return money owed as credits.
Roadway Express Inc. and Yellow Transportation Inc. merged in 2009 to create YRC Inc., now known as YRC Freight Inc.
Read the full U.S. Department of Justice release here.
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