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auto parts are sourced from Mexico, making the tariff impact immediate and severe. Industry Mitigation Strategies To counteract the rising costs and supply chain delays, technology firms are focusing on: Expanding manufacturing capabilities in non-tariffed countries like Vietnam, Thailand, and India. Approximately 40% of U.S.
Ocean Market Update Reliable Solutions in a Volatile Market The ocean freight market continues to navigate volatility shaped by shifting trade policies, geopolitical uncertainty, and cautious market sentiment. Maersk Middle East situation update. Across the region, available capacity remains sufficient for current demand.
Vietnam has been a distant second post-pandemic, representing roughly 8%. Increased orders from countries like Vietnam and India helped fill the gap, but only offset about 10% of the lost volume. For inland freight demand to surge, inventory levels in interior markets will need to show meaningful reductions. While direct U.S.-bound
Vietnam, for example, increased its export volumes to the U.S. over May, indicating a shift in sourcing strategies. Diverse sourcing: Evaluating supplier and factory locations can mitigate risks associated with over-reliance on specific regions, a crucial step in maintaining supply chain resilience. of total U.S.
Strategic rethink in supply chains With such a substantial shift in operating costs over the short and long term, as well as an increased risk of dislocation disrupting supply chains, businesses are reconsidering their strategies, with major implications for global manufacturing and sourcing.
Washington has come to basic terms on trade deals with China, Vietnam, and Great Britain. companies in apparel and fashion have shifted their sourcing, and have reached “single-digit” dependency on Chinese manufacturing, said Maersk Chief Commercial Officer Karsten Kildahl, in the update. “[O]ther in June, 2021.
Industries Hit Hardest (So Far) While no industry is entirely immune, some are feeling the effects more acutely: Automotive and heavy equipment : Reliant on cross-border part sourcing and large-scale metal imports. Freight forwarders are increasingly promoting transloading and FTZ usage to defer or avoid tariff payments.
As sourcing demand shifts to Southeast Asia, FedEx launched a direct flight from Singapore to the US. According to FedEx, this route enables more efficient capture of volume from countries such as Vietnam, reflecting a broader strategy of targeting emerging trade flows from Asia to Europe and Latin America.
Reported May 20 Let me take a moment to comment on our global sourcing strategy. Today, more than 50% of our purchases are sourced in the United States. During that period, the vast majority of our supplier partners developed diversified sourcing strategies across several countries, including the United States.
Brian Grass - Chief Financial Officer We also began dual sourcing more of our production and are now intensifying those efforts even further. We began to build out our internal Southeast Asia sourcing capabilities to accelerate supplier transitions out of China and in many cases dual source our production. billion to $1.6
Trade wars introduce barriers like tariffs and trade restrictions, affecting raw material sourcing, manufacturing, and the flow of goods. President Trump’s newly implemented tariffs, reaching up to 104% on imports from countries like China, Japan, Vietnam, and India, have triggered significant disruptions in global supply chains.
Brent Kirby – President Given the uncertainties surrounding current trade deliberations, we would not anticipate significant country of origin changes in our sourcing in the near term. As an example, in 2025, we will be relocating production of 500 toy SKUs from China to other sourcing locations. tariffs were enacted.
has officially imposed massive reciprocal tariffs on imports from China, Japan, Vietnam, India, and other countries. Revise Risk Assessments and Trade Compliance Strategies Regulatory teams should immediately audit sourcing exposure to newly affected countries and reassess trade route viability.
Mosel river in Germany reopened to shipping, damaged lock working Inland waterways freight shipping on the river Mosel in western Germany is back to normal with ships able to use a damaged lock for sailings in both directions on the river, navigation authorities said on Friday. Retailers' exposure to tariffs on Asian countries U.S.
Shippers are scrambling to front-load orders during this 90-day window, an effort thats already driving spot rates higher across ocean freight, drayage, and over-the-road transportation. Some brands are routing ocean freight into Mexico or Canada first, then using bonded trucking to move goods into the U.S.
European truckmakers tackle rare-earths bottleneck with stockpiling, supply chain shifts European truckmaker Volvo Group has been seeking alternative sources of rare earths and Daimler Trucks has been building inventories to deal with supply issues linked to Chinese export curbs, saying lessons had been learned from the chip crisis.
France, Vietnam sign deals worth $10 billion as Macron visits Hanoi France and Vietnam signed deals on Monday on Airbus planes, defence and other pacts, worth over $10 billion as President Emmanuel Macron visited Hanoi seeking to boost France's influence in its former colony amid risks of high U.S. auto market.
Potential for capacity shortages and higher freight rates through Q2. Anticipated Longer-Term Shifts Sourcing diversification is expected to accelerate, favoring Mexico, Latin America, and Southeast Asia (for non-tariffed or low-tariff goods). Assess small-parcel and e-commerce models, especially if sourcing from China.
He was a mentor to many and a source of inspiration to all. Smith developed FedEx as a freight version of a bank clearing house where one bank clearing house was located in the middle of affiliate banks and all representatives were sent to the central location to exchange materials, according to one of his biographies.
Nowhere was that tension more visible than during one of the conference’s hardest-hitting panels, a deep dive into the complexities of tariff policy and its ripple effects on global sourcing, consumer pricing and retail resilience. Sourcing strategies built over years have unraveled in days. For businesses, this has been catastrophic.
Low water levels hamper shipping in Germany's Rhine River as heat wave continues A heat wave in western Europe has lowered water levels on Germany's Rhine River, hampering shipping and raising freight costs for cargo owners due to additional surcharges as their vessels were unable to sail fully loaded, commodity traders said on Monday.
Exclusive: Hyundai Motor has a rare earths stockpile that can last about a year, source says Hyundai Motor (005380.KS) US trucker Forward Air attracts takeover interest from buyout firms, sources say Private equity firms including Blackstone (BX.N) Explainer: What's behind the surge in Japan's rice prices? investments.
When duties render traditional sourcing unprofitable, companies must reconfigure supplier networks, often under tight timelines. This was evident in the apparel industry, where brands such as Nike faced delays after tariffs on Chinese textiles prompted a shift to suppliers in Vietnam and Bangladesh. Nearshoring and Reshoring U.S.
China-US air freight tumbles on 'de minimis' tariff; airlines adjust routes Air freight capacity between China and the U.S. China agreement to pause sky-high tariffs on each other is pressuring manufacturing hubs such as Vietnam and Mexico to make their own, better deals with the U.S.
Reported May 29 As we continue to navigate tariffs, we're implementing various mitigation strategies, including partnering with our sourcing vendors to reduce costs. This is the result of vendors using production capabilities in multiple countries and leveraging their ability to flex sourcing options as the environment evolves.
– May 7, 2025 Update The Freightos Weekly Update keeps you informed on international freight with key economic data, demand trends, and rate insights. In any case, the reduction in US sourcing from China for the last few weeks will start to be felt soon in fewer May container ship arrivals and lower import volumes.
I recently learned that Walmart is currently moving all of their product shipments to June and July, in effect hoping to receive a bulk of their goods for 2025 prior to adoption of the tariffs in August on China, India, Bangladesh, Vietnam, and other Asian countries. Ocean freight lead times have also escalated to 65 days on average.
Home April 16, 2025 Update The Freightos Weekly Update keeps you informed on international freight with key economic data, demand trends, and rate insights. For freight, last weeks reciprocal tariff roll out resulted in reports of a widespread drop in container bookings out of Asia.
For retailers, US-Vietnam trade deal leaves questions A trade deal announced by the U.S. and Vietnam creates new question marks for sportswear and clothing retailers like Nike and Adidas that source shoes and clothes from factories in the Southeast Asian country, industry experts said on Thursday. They tried Made in the USA.
He did two tours in Vietnam and was awarded a Silver Star, Bronze Star, and two Purple Hearts. He founded a new freight company called “Federal Express,” to denote his national ambitions. Where is the metric for determining the sources and uses of cash from three perspectives - operational, investment and financial?
In addition to inflating the prices Americans pay for a wide array of goods, these tariffs threaten to derail the freight industry’s long-awaited recovery. A pricing agreement refers to the base rate in LTL pricing, which factors in the zip code pair, weight, and freight class of the shipment. Canada, for example, is a major U.S.
and Vietnam have been far short of comprehensive, leaving many details unclear. Most of the tariff rates, however, were largely in line with what Trump had already announced the nations were likely to face. Trump also secured a truce with China to lower rates and ease the flow of critical earth minerals.
This includes the combination of cost sharing with vendors and price increases in the coming quarters and sourcing optimization in the medium to long-term. Our merchants, sourcing team, and suppliers are being creative. Denise Paulonis - President and CEO Nothing like waking up this morning with some new news.
Dockworkers, Port Employers Set to Restart Talks Bloomberg Vietnam Inks Deals to Buy $3 Billion U.S. has begun shipping commercial jets to China for the first time since early April, indicating a reopening of trade flows despite the long-simmering tariff war between the U.S. and Asia’s biggest economy. and Asia’s biggest economy.
Blog More Resources Home A Volatile Year Ahead: Scenarios for Ocean Freight in 2025 Judah Levine Freightos was delighted to host its seventh annual FreighTech conference recently, bringing together leaders in What does 2025 hold in store for ocean freight ? Stay informed every single week with our free weekly freight update.
Apparel and footwear production hubs in Asia, including China and Vietnam, face elevated tariff rates as the White House pushes for new trade deals. The company and its retail peers are trying to manage supply chains that have been upended by U.S. President Donald Trump’s trade wars.
In this article, Eytan Buchman, Freightos’ CMO, discusses the importance of data and context in global freight and logistics. The future of global freight data lies in real-time information, contextual insights, and aggregated data that can help companies make better decisions and adapt to a rapidly changing industry.
Unless the source of natural gas dries up, which is not likely for many years to come, the price of gas is likely to remain low for the foreseeable future. Twitter Facebook Google+ LinkedIn The post The Changing Face of Manufacturing: How US Manufacturers are Looking Homeward appeared first on Freight Logistics Company | Cerasis.'
One-third of respondents (33%) paused shipments entirely, while 29% are exploring alternative sourcing options outside of affected regions. Interestingly, while rates from China have declined, prices from Taiwan and Vietnam have remained elevatedlikely reflecting importers’ rapid pivot to alternative sourcing markets.
The survey shows that a full third of companies with global supply chains intend to move their sourcing and manufacturing activities out of China in the next few years. With trade wars and tariffs pinching operational profitability, manufacturers are looking at alternative locales like VietNam, India and, Mexico.
BluJay customers include five of the top 10 food and beverage companies, 32 of the top 40 LSPs, and 24 of the top 25 freight forwarders. Reducing reliance on different modes of transport or a single source location, while diversifying collaborative relationships within the market is key defensive strategy.
Global Supply Chain & Sourcing Director for ECCO Global Shoe Production & Sourcing. My projects in Malaysia, Philippines, China, Indonesia and eventually Vietnam, ranged from customer service and order fulfillment, shop-floor planning, inventory management, import/export and procurement.
This cost includes the per-unit price of the product itself, freight charges, taxes, import and export duties, insurance premiums, payment processing fees, currency exchange rates and other expenses. Visit our website to find out more about how QAD Supplier Management and Sourcing can help you mitigate supply risks and cut costs.
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