[FFW News] Another Houthi attack

Welcome back to Freight Weekly

Final newsletter of the year. See you all in 2024.

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🚚20,000 truck parts by FTL — Mexico to Laredo, TX, USA

🚢27 Tons natural stone tiles by container — Turkey to Bermuda

🚢3095 kgs commodity - furniture by container — Italy to Elizabeth, NJ, USA

📦Toasted coffee — Costa Rica to Houston, TX, USA

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📈 BY THE NUMBERS: Important numbers impacting freight and logistics

⛽ Diesel: $3.914 gal (🔼from $3.894 last week) - Source: EIA

✈️ Air Cargo Index (Nov ‘23): 169.3 (🔼from 166.4 in Oct ‘23) - Source: FRED

🚢 Global Container Index: $1,346.20 - Source: Freightos

Logistics News for Dec. 28, 2023

🔫Houthis attack another ocean carrier in the Red Sea

Yemen’s Houthi rebels launched an attack on another commercial ocean carrier in the Red Sea, marking the latest escalation of aggression along shipping routes in the region as carriers transit the Red Sea-Suez Canal corridor. The ship which was attacked was owned by MSC. The vessel was on its way to Pakistan from a port in Saudi Arabia, MSC said in a statement. MSC Mediterranean Shipping said it will continue redirecting its ships around the Cape of Good Hope. Read here…

🫣Maersk to resume shipping in the Red Sea after U.S.-led op announced

Ocean carrier Maersk issued an advisory to its clients that they are resuming the company’s shipping through the Red Sea and the Gulf of Aden. Currently, there are Maersk liners transiting the Suez. The advisory comes about a week after U.S. Defense Secretary Lloyd Austin announced an operation focusing on the security challenges related to Houthi attacks on commercial traffic related to the Iranian-backed group showing support for Hamas in the latest Israeli conflict. More…

🌡️Panama Canal congestion and Red Sea attacks threaten global shipping

Since we are still talking about global trade security, it is fair to say that the crisis in the Red Sea and the ongoing drought-linked congestion in the Panama Canal will negatively impact shipping. Regions are reliant on the crucial choke points — the Panama, of course, and the Suez. Further disruptions will impact a third of all global trade. Rerouting is occurring, but it’s adding further instability. Consider a quick example. Shipping in the Panama Canal has dropped by over half due to the drought conditions contributing to a shortage of water in the 51-mile stretch connecting the Pacific and the Atlantic. Ships that would typically transit through the Pacific from container ports in Asia to Gulf and East Coast terminals in the United States are now being forced to transit the Suez. This adds six more days or so. Rerouting around the Cape of Good Hope in South Africa or Cape Horn in Chile adds considerable time and risks but has been an operating measure to avoid the violence in the Red Sea and congestion at the Panama Canal. Read…

💰U.S. considering more tariffs on Chinese electric vehicles, other goods

The U.S. federal government is reportedly reviewing tariff proposals on goods and electric vehicles produced and shipped by the People’s Republic of China. Duties on Chinese automakers will make it even more challenging for them to sell to North American consumers. The move is also to bolster U.S. automakers in the shift toward a wider electric vehicle adoption by consumers. Read here…

🪙Nearshoring will lead to boosts in U.S.-Mexico cross-border trade

Speaking of electric vehicles… Tesla, Elon Musk’s EV giant, is planning to build a huge $5 billion factory in Monterrey, which is scheduled for completion in the next two years. This strategy of nearshoring and the boost in Mexico’s exports in recent years will directly contribute to stronger cross-border trade across the U.S.-Mexico border in 2024 and beyond. An effort to shift supply chains back to North America away from China has bolstered Mexico’s position in the USMCA trade agreement intended to integrate the U.S., Canada, and Mexico. Read it…

☕More stories as you drink one of the last cups of coffee in 2023(🤯)☕

• “China Scholar Warns Relations With US Ally Facing 'Point of No Return'“ - Newsweek

• “A New Tax on Imports and a Split From China: Trump’s 2025 Trade Agenda” - The New York Times

• “Iran, Russia to trade in local currencies instead of US dollar - state media” - Reuters

• “CBP reopens key ports of entry for freight trains at US-Mexico border” - Freight Waves

• “Steady rise in passenger capacity undermining air freight rate growth” - S&P Journal of Commerce

Compiled by Michael McGrady – news analyst and writer.

Do you have a tip? Feedback? Email him – [email protected]