MARKET BRIEF | February 2023
Retailers Cautious in an Uncertain Economy
Inbound cargo volume, via U.S. seaports, is expected to drop to the lowest level in nearly three years. Retailers are slowing their pace because of uncertainty as to how the economy will fare as the year progresses. February is normally a slow month for imports, but the latest figures represent an even lower volume than usual. This slowdown reflects a similar slowdown in 2020, where shutdowns negatively affected the global economy. However, this time, the U.S. economy is faced with uncertainty that is driven by still-high inflation, resulting rising interest rates, and the prospect of further federal spending.
West Coast Labor Talks Resume After Seattle Terminal Dispute
After a nine-month standstill in negotiations, West Coast dockworkers and marine terminal employers resumed talks on a new contract. The stall involved a controversial jurisdictional issue involving Terminal 5 in Seattle. Both sides may feel external pressure to get a deal done, given speculation that U.S. Secretary of Labor Marty Walsh may be brought in to oversee negotiations. There is also pressure from terminal stakeholders that have become increasingly dissatisfied with the ongoing cargo bleed from West Coast ports, which has been caused by shippers diverting cargo in order to avoid potential port disruption due to labor strife.
EU Implementing New Customs Security & Safety Program
As of March 1, the European Union will be implementing a new Customs security and safety program – named “ICS2” (Import Control System 2) – that will require additional data for pre-loading risk assessment of shipments entering the that market. With these new measures in place, carriers will be allowed to transport shipments only after receiving clearance from Customs authorities. This action is aimed at sorting out shipments that could endanger flight safety before they are loaded onto an aircraft destined for the EU, and will also ensure smooth processing of shipments.
TSA Mandates Holes for Canine Screening of Cargo
Since more and more airlines, and their vendor screening services, have be utilizing canine teams to screen cargo, the TSA is mandating shippers to drill holes into the sides of wooden crates. This creates vents for canines to sniff for explosive materials more efficiently. Crates that are received without vent holes are being refused, or the vendor screening services are drilling the holes themselves, which introduces the potential for damaged cargo. Therefore, it is recommended that 4-inch vent holes are drilled into crates on each side – with louvers and insect screens applied – as seen here.
Aeronet Houston Gains Significant Capacity
Aeronet Worldwide’s Houston operation has moved its operation to a facility just north of the city center. This 152,000 square foot building will, not only provide them with the capacity to grow business in that area, but will also enable the operation the potential for eCommerce fulfillment and distribution services. It is located … READ MORE
