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Freight Insight for Week of June 15 and USMCA Taking Effect July 1

Freight Insight for Week of June 15 and USMCA Taking Effect July 1

Thanks for tuning in to Sunset’s weekly market outlook column.

Trends and discussions range from seasonal manufacturing and agriculture trends that affect available capacity to general insight into outside factors affecting freight volumes.

Below is a summary of the June 17 call:

USMCA EFFECTIVE JULY 1

  • USMCA’s main change is that certificates or origin to avoid the payment of duties is going away. Blanket statement of origins once accepted under NAFTA are no longer applicable.
  • If a shipper is using NAFTA now, they will need to recheck the new rules and make sure their products are being shipped correctly with appropriate duties.
  • Customers will require some consulting on how to make cross-border shipments, and delays across both borders are likely. Chaos is expected.
  • 70% of shippers are NOT ready to make this change on either side of the border.
  • Sunset is available to guide our customers through this Customs Clearance change, via contacting your account manager or the branch’s Managing Director.

For official documentation and regulations, click HERE to visit the U.S. Customs and Border Protection website.


FREIGHT VOLUMES & CAPACITY

  • Freight volumes in U.S. are generally lagging during beginning of summer.
  • Reactivation of US and MX economies is happening; pricing out of Laredo has jumped during the first weeks of re-openings.
  • Customers are still seeking to lower costs through transportation, thus coming to Sunset for opportunities as inventories are beginning to replenish.
  • Longer lead time to secure better truckload pricing is still preferred.
  • July 4 falls on a Saturday this year – keep in mind this is prime time for freight theft.


CONTRIBUTORS
  • Grand Haven: Doug Bryant
  • Green Bay: Rick Kerr
  • Laredo: Jose Minarro
  • Nashville, TN: Jonathan Falcon
  • St. Louis, MO: Justin Danks
  • St. Paul, MN: Mike Morris
  • Wilson, NC: Mary McCallister