🤝 Truckstop & FBI Partner

Happy Hump Day. As U.S.-China trade goes through a bit of a ‘breakup,’ ports across America are swiping right on more automation. Meanwhile, Chicago is flexing its manufacturing muscles, and Truckstop is now swapping secret handshakes with the FBI. And speaking of special handshakes, the sharks are circling at this year's TIA 2023 Technovations event.

Are you curious to know which four industry titans are ready to bite into deals at this year's TIA event?

In today's email:

• Three Freight Headlines: A surge in cargo theft and the industry response, a glimmer of optimism from Werner's CEO, and a shipping slump in the Northeast.
• The Great Unraveling: The U.S. and China’s Fraying Trade Bond
• Around the Freight Web: Truckstop joins forces with the FBI to combat cargo theft, meet the new sharks shaping TIA 2023 Technovations event, Chicago flexes its muscles as a manufacturing titan & more.

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🐔 WHAT’S COOKIN’ IN FREIGHT

🚨 Cargo Theft Crisis Peaks, Industry Acts. In Q2 2023, cargo theft in the US and Canada surged to a 10-year high, with 582 incidents—a 57% increase from Q2 2022—valued at over $44 million. Strategic thefts, involving stolen identities, are the main culprits. In response, industry stakeholders like Truckstop and Travelers Companies are launching educational initiatives and leveraging technology for swift theft reporting.

🚛 Werner CEO: Worst Behind Us. Werner Enterprises CEO, Derek Leathers, is optimistic that the worst of the freight downcycle is nearing its end. Despite a 16% fuel cost rise since July, Leathers anticipates a 'normal replenishment cycle' for customers and appreciates loyal shippers. The company has enacted $40+ million in cost-saving initiatives, with a Q3 forecast indicating a 4% to 7% y/y decline in one-way rate per mile.

📉 Northeast Shipping Slump. U.S. Bank data shows a 27% drop in Northeast regional shipments in Q2 YoY, surpassing the 25% drop during Q2 of 2020. This decline is attributed to reduced housing starts, lower household consumption, and a manufacturing slowdown. While most regions in the U.S. have seen shipment declines, the Southwest stands out with a nearly 15% increase, driven by strong cross-border truck traffic with Mexico.

TOGETHER WITH TRUCKER TOOLS

Cross Border Shipping: Potential for Fraud & 3 Strategies to Avoid It

Earlier this year, Mexico became the United States’ top trading partner and there is a significant amount of high-value freight crossing the border. Fraudsters looking to steal high-value cargo are attracted to the vulnerabilities associated with international border crossings, putting these shipments in harm’s way.

Join this webinar with DeLon Garbett, Managing Partner of Sales & Operations from GB Associates brokerage and Kary Jablonski, CEO from Trucker Tools will discuss:

• The most common types of fraud with cross-border shipping
• Real-life fraud situations experienced by GB Associates
• Strategies implemented to prevent cross-border fraud
• How a cross-border and fraud toolkit can help defend against fraudulent activity

Register Now By Clicking Here. (It's Free).

THE GREAT UNRAVELING: THE U.S. AND CHINA'S FRAYING TRADE BOND

Trade patterns between the United States and China, two of the world's biggest economies, are evolving. Recent data charts this ongoing transformation.

A Steady Decline in China's Share of U.S. Goods. Over the past two decades, there's been a steady decline in the percentage of goods the U.S. imports from China. The first half of 2023 marked the lowest in 20 years, with China accounting for 13.3% of U.S. imports, a decrease from a peak of 21.6% in 2017.

Shift Away from China. Several reasons have been cited for this shift:

• Tariffs: The U.S. government imposed tariffs on Chinese goods starting in 2018.
• Pandemic-induced supply chain issues: Shortages of products like face masks and semiconductors forced companies to reevaluate their supply chains.
• Tech conflicts: Intensifying conflicts over advanced technologies like semiconductors and quantum computing. This has pushed companies to seek alternative, more resilient supply chains.

Asia’s Rise, But Not China. There has been a noticeable shift of production to other Asian countries, particularly Southeast Asian nations and India. These nations combined have exceeded China's share of U.S. imports starting from early 2019.

Mexico's Rising Role. Mexico's free-trade agreement with the U.S. and Canada, coupled with a trend towards shorter supply chains post-pandemic, has propelled it to match China's share of U.S. imports as of June. Now, when considering both imports and exports, Mexico stands as the U.S.’s top trading partner.

Shrinking U.S.-China Trade Deficit. The U.S. trade deficit with China dropped to $313 billion in June, nearly reaching its lowest since the onset of the pandemic.

Key Product Insights

• Smartphones: While a large chunk of smartphones imported into the U.S. is still from China, its dominance is waning. Major companies like Apple are looking to diversify their supply chains.
• Semiconductors: Vietnam and Thailand are emerging as significant sources for chip imports to the U.S., challenging China's dominance in the late stages of chip-making.
• Apparel: U.S. imports of Chinese apparel have reduced rapidly since tariffs were imposed in 2019. Concerns over labor practices in China's Xinjiang region and rising Chinese wages have expedited the sourcing shift to other Asian nations.
• Furniture: China's domination in the U.S. furniture import market has been on the decline due to tariffs. Vietnam, Mexico, and Canada are stepping up, collectively accounting for nearly half of the U.S.'s furniture imports.

As U.S. companies diversify imports away from China, the ensuing shifts are impacting domestic logistics. Southern California's warehousing market, a key hub for imported goods, is cooling due to reduced imports and rising costs. Simultaneously, the region’s ports face challenges in adopting automation to stay competitive amidst changing trade patterns, highlighting intertwined destinies of trade policy, warehousing, and port operations.

Source: Wall Street Journal

AROUND THE FREIGHT WEB

🤝 Truckstop Teams with FBI. Truckstop collaborates with the FBI to tackle the escalating issue of cargo theft.

🦈 Meet the Sharks. Introducing Benjamin Gordon, John Rompon, Gary Dollinger & Pat Martin at this year's TIA2023Technovations.

💪 Chi-Town's Mighty Manufacturing. Chicago boasts the second-largest manufacturing industry in the nation by output.

🏔️ Tesla Semi’s Mountain Test. Watch Tesla's fully loaded semi-truck take on steep grades, including the Donner Pass, to identify and resolve issues.

⚖️ Louisiana Scam Saga: New Charges. Five new indictments in Louisiana's staged truck accident scam, reviving a previously quiet investigation before key sentencing.

🔥 Car Crashes Into A Landstar Trailer in Chicago. A car burst into flames on the Dan Ryan Expressway after colliding with a Landstar trailer in Chicago. We believe that the Landstar truck was carrying a hazardous load.

FREIGHT MEME OF THE DAY