For shippers moving goods between the U.S. and Canada, changes to tariff rates could affect landed costs, sourcing decisions and overall transportation planning. Lower duties on metals and automotive products could provide some relief for companies with significant cross-border exposure, but the uncertainty surrounding the negotiations means businesses should continue planning for multiple scenarios. Keeping a close eye on policy changes and understanding how tariff adjustments could affect individual supply chains will remain important as the framework develops.
“When trade policy is changing this quickly, having visibility into the full supply chain becomes increasingly important. Shippers need to understand not only what a tariff change means at the border, but how it can influence sourcing, inventory and transportation decisions across their network,” said Justin McInturff, International Logistics Manager at Jarrett.
Learn more at The Wall Street Journal.
See Justin's insights here.
The U.S. Department of Transportation is developing a new supply chain visibility initiative designed to give transportation stakeholders greater insight into cargo movement and potential disruptions. The American Supply Chain Sovereignty Initiative would connect major ports with ocean carriers, trucking companies, railroads and retailers through a centralized data platform, although the program still needs congressional action and additional definition before it can be implemented.
Greater access to timely supply chain data could make it easier to identify disruptions, anticipate bottlenecks and make adjustments before problems ripple through their networks. The proposed system is intended to complement, rather than replace, existing commercial visibility platforms, with the goal of improving coordination among the different parties responsible for moving freight.
“Supply chain visibility is only as valuable as the information behind it. As more organizations work to share data across transportation networks, the ability to connect accurate, timely information across modes will be critical to identifying disruptions, making informed decisions and keeping freight moving,” said Aaron Nussbaum, Vice President, Logistics Operations at Jarrett, “Building that level of connectivity will require collaboration across the supply chain, as well as a clear focus on data security and trust.”
Read the full story at Supply Chain Brain.
Federal regulators are stepping up enforcement of electronic logging device requirements as part of a broader effort to prevent manipulation of driver hours. The increased scrutiny is coming as the U.S. truckload market is already experiencing tighter capacity, meaning fewer available driving hours could create additional challenges for shippers trying to secure reliable truckload service.
As regulatory enforcement increases, fewer available driving hours could add another layer of complexity to an already evolving truckload market. Capacity constraints may lead to tighter pickup and delivery windows, longer transit times and increased transportation costs, particularly across lanes with limited carrier availability. Proactive planning, flexible scheduling and strong carrier relationships will be increasingly important to maintaining consistent service as the market adjusts.
“Changes in available driver hours can have a ripple effect throughout the supply chain, particularly for shippers operating on tight schedules. As capacity becomes more constrained, proactive planning and flexibility will be critical. Especially in an already tight truckload market, shippers that have strong carrier relationships and visibility into their transportation networks will be better positioned to adjust quickly and maintain service when conditions change,” said Mark Gordon, Chief Operating Officer at Jarrett.
Read the full story at the Journal of Commerce.
U.S. manufacturing activity posted its strongest reading in four years this summer, with the Institute for Supply Management’s Manufacturing PMI reaching 55.6, up 2.3 points from June. The seventh consecutive month of manufacturing expansion was accompanied by stronger new orders, lean inventories and improving employment, indicators that are beginning to translate into stronger LTL freight volumes.
The manufacturing sector's momentum could provide a meaningful tailwind for LTL demand in the months ahead. About two-thirds of LTL volume is tied to industrial output, and carriers are already reporting signs of improvement, with average tonnage up 2.6% year over year in the second quarter and preliminary July tonnage up 5.1%. As industrial activity picks up and more truckload freight moves back into LTL networks, transportation teams may need to account for changing volume patterns and capacity conditions when planning shipments.
“The recent strength in manufacturing is an encouraging signal for the transportation market, but sustained growth will depend on how consistently that demand carries through the broader economy. As freight patterns continue to shift, having the flexibility to evaluate mode, capacity and network needs will be important for keeping transportation strategies aligned with changing market conditions,” said Mike Jarrett, President and CEO of Jarrett.
Read the full story at FreightWaves.
The September Supply Chain Report is out now! Stay updated with the latest in transportation news in:
- The Freight Market
- Less-than-truckload
- Truckload
- Parcel
- International
Click HERE to review the report!