Trucking Shortages Reported

It has been reported recently that there is a shortage of trucks and equipment to handle shipping on mainland Japan.

One of the factors that is appearing to contribute to the shortages are the construction of the venues and housing for the 2020 Olympic Games to be held in Tokyo. Delays in the construction of a few of the venues, notably the aquatics center and rowing venue, has taken trucks away in order to catch up to the schedule.

One of the factors that is appearing to contribute to the shortages are the construction of the venues and housing for the 2020 Olympic Games to be held in Tokyo. Delays in the construction of a few of the venues, notably the aquatics center and rowing venue, has taken trucks away in order to catch up to the schedule.

Shippers Asked To Urge Congress For Relief

Existing tariffs of 10 percent on approximately 1,300 product classifications on imports from China will remain at that level for the time being. The expected rise to 25 percent on January 1 were avoided with the meeting at the G-20 summit last month between Donald Trump and Xi Jinping.

Additional negotiations on intellectual property, cybersecurity and other trade related issues will continue. In the event that no agreement is reached within 90 days of the G-20, the tariffs will rise to the 25 percent level.

US companies have been asked to tell Congress how damaging the Trump administration's proposed 25 percent tariffs on imports from China will be to their businesses.

"Your stories can make a difference," Erin Ennis, vice-president of the US-China Business Council, told the Western Cargo Conference of freight forwarders and customs brokers in October, so businesses should go directly to Congress with their concerns, she said.

In a global economy, if China finds US tariffs to be too much of a burdens, they have an outlet to add to their trade ties with countries they find to be more reliable. "You can't do it unilaterally. Europe and Japan look much better today because they are reliable and we're not," she said.

Furthermore, the growing middle class in China and elsewhere in Asia will provide increased opportunities for US exports, but China's retaliatory actions due to US tariffs on its goods could result in exports from other countries being more competitive in China, Bingham said.

Possibilities for the Year Ahead

With a new year just begun, there are always a fair amount of uncertainties as to the future. For US shippers and transportation providers, 2019 has its own concerns as to what the picture will look like.

Shippers and transportation providers deal with the "knowns," and supply chains don't run smoothly by waiting for answers to appear.

Following are a few certainties shippers and their transportation providers can look to for 2019:

Tough trans-Pacific service contract negotiations. Low-sulfur mandate, shipper frustration with having to pay out premiums to get slots during peak season, and signs of increasing capacity management by carriers. It's points to some tough, multiple rounds of back-and-forth negotiations.

Tight US truck capacity but not 2018-tight. Prices will remain high compared with 2017 or 2016. The balance is shifting in the less-thantruckload market, with regional carriers expanding their networks. On the drayage side, some carriers may start expanding as they look to inject value beyond point A-to-point B ocean shipping.

Growing allure of in-house and dedicated/contract capacity. Online retailers such will beef up their inhouse air cargo capacity, a reflection less of their drive to disrupt transportation and more about an effort to guarantee delivery for impatient customers.

Bolder moves of container lines to inject value. Expect bigger strides this year, as the divide becomes more apparent between supply chain management-focused and port-to-port carriers.

Awakening of maritime regulators. Stirred by complaints of Asian subsidies in container shipping and shipbuilding, European regulators are set to come out swinging. US regulators aren't wading in with fervor, but the first reworking of the US Shipping Act since 1988 put the US Federal Maritime Commission on the hook to report annually to Congress on the power of shipping alliances.

Lessened priority of blockchain. With less of a glaring spotlight on the blockchain buzz, some viable value creation for shippers around blockchain might emerge.

IFT New Jersey Celebrates Christmas

The New Jersey office of IFT met on December 14th for their annual Christmas party. The gathering was held at Ferraro's, a landmark in the area since 1969, serving a blend of traditional and contemporary Italian delicacies.

It was a wonderful way to unwind and close out the year with good friends and good food.