Transportation demand shift looms in the fog of a trade war

Week scheme: The external tender size index, the extension of the exported railway container, the internal Teus Index – USA Sonar: otvi.usa, oraill.usa, iOSI.USA

The sizes of the tree of the load (OTVI) remain weaker than the three main indicators on the demand aspect. On the contrary, multimedia -media containers that move via railways (Oraill) have an average of more than 7 % on an annual basis, and container import reservations (iOSI) show similar gains after clearing the new year period.

Prefabble meals: The shipping market is still in a decade style, while financial markets are struggling to explain what appears to be a continuous trade policy.

At the time of writing this report – a necessary warning is now necessary in any discussion related to definitions due to the frequency of change – the tariff on Chinese goods has risen to 125 %, which puts huge pressure on companies that make products from China.

China is still the dominant origin of the goods that enter the United States by sea. Many companies have begun to diversify their supply chains away from China after the roaming epidemic, which revealed the risk of excessive dependence on Chinese manufacturing. Some of this shift began during the Trump administration with the intensification of commercial tensions.

This latest wave of definitions and negotiations left many supply chain managers to fold. Many expected more time and guidance clearer to transfer production to countries like Mexico and Vietnam. Instead, a series of blanket definitions – including early measures targeting trade partners in North America – left them not sure of their next steps.

Meanwhile, the demand for truck loads decreased by almost 10 % over the past year, as the trucks are increasingly resorting to multimedia solutions for local transport.

Multimedia demand flourishing (From the perspective of size, not pricing) to a large extent due to the increase in lead times in requests. The two trucks “pull forward” before the fulfillment of the fulfillment, which reduces the urgency that usually accompanies the inventory management models in time.

During the epidemic, the transport providers were immersed in the shipping that needs to move immediately. Today, they see an abundance of shipping that may need to move within a few weeks – or more.

Although Intermodal is usually a low -cost option, it also benefits from this environment from a slower pace in its nature, due to multiple transportation points. This truck is used in their favor, and they actively deal with multimedia treatment as a form of “circulating storage” for stock management.

However, the escalation of definitions with China indicates that this clouds strategy may end soon-at least with this country. If this happens, the demand may return to more sensitive levels with actual consumption.