Primary Freight continues to provide you with this week's summary of the key industry events, thus allowing you the time to advantageously manage your supply chain and work through some of the ongoing pressure points, all to lessen the impact on your business. We are here to assist, anytime. | | Tariffs, FMC, USTR, & Interests | | |
A bill reauthorizing the FMC for another three years has been introduced in the House of Representatives, with the proposed legislation also adding more outside expertise to the agency for help on ocean carriers and ports and allowing for a complaint process covering freight rates. Reps. John Garamendi (D-Calif.), Dusty Johnson (R-SD), Mike Ezell (R-Miss.) and Salud Carbajal (D-Calif.), introduced the bill to reauthorize the FMC through 2029. The bill, which includes funding for the agency, aims to build on Garamendi and Johnson’s work on the Ocean Shipping Reform Act of 2022 (OSRA-22).
Imports of copper are expected to accelerate in the coming weeks in a final scramble to get metal across the border before the administration’s higher-than-expected 50% tariff on imported copper goes into effect. The tariff on copper was announced this past Tuesday, sending U.S. Comex copper futures up more than 12% to a record high. U.S. Commerce Secretary Howard Lutnick said the levy would likely be in place by the end of July or August 1. The deadline slaps an expiry date on a months-old playbook whereby traders have pulled metal out of warehouses around the world and shipped it to the U.S. to cash in on a premium that was hovering around $2,600 per metric ton early this past Wednesday.
The Houthi have claimed responsibility for an attack on the Magic Seas, and a second Greek bulker has been struck off the coast of Yemen. The Liberian-flagged bulker Eternity C was attacked by drones and skiffs according to Reuters. Two crew members were reported to have been wounded in the attack while two others were missing. The bulker has a crew of 22 comprising 21 Filipinos and one Russian national. In what appear to be the same incident UKMTO issued an incident warning saying that a vessel had been attacked with rocket propelled grenades 51nm west of Al Hudayah in Yemen. The companies Chief Security Officer said the ship had been attacked by five rocket propelled grenades and was being approached by multiple small craft.
Subsequently, the bulker Magic Seas attacked by the Houthi on 6 July around 51 nm southwest of Al Hudayah, Yemen has been confirmed sunk. A slickly produced video is reminiscent of one released by the Houthi in November 2023 of the hijacking of the car carrier Galaxy Leader which marked the start of the rebel group targeting commercial shipping in the southern Red Sea and beyond. Some of the largest names in shipping dodged a bullet by maintaining Cape of Good Hope diversions during a six-month lull of Houthi attacks.
It is hard to imagine two individuals who did more to disrupt freight transportation than Fred Smith and Malcom McLean. But that is where the similarities end between the pioneers of express delivery and container shipping. Their respective revolutions redefined transportation but resulted in a wholly divergent set of winners and losers. McLean, who died in 2001, was a trucker frustrated by having to wait at the port while cargo was manually loaded. His genius, and why he sits in the pantheon of 20th century business visionaries, was not because he “invented” the shipping container. The container had been identified years before his first ship sailed in 1956 as a method capable of driving out cost, enabling end-to-end transit and reducing theft. Rather, his legacy emerged through the grit and determination required to break through walls of operational complexity and customer skepticism. Smith, who died June 21 at the age of 80, also broke little ground technologically as planes, trucks and warehouses all existed long before FedEx began operations in 1973. Rather, it was physically combining the assets and synching them operationally that created the breakthrough represented by overnight express delivery. What Smith saw, as did McLean, was an untapped market. While McLean saw customers hungry to drive down costs and willing to sacrifice delivery speed to achieve it, Smith spotted a market at the opposite end of the spectrum, one that wanted speed and, at the right price, would be willing to pay for it. R.I.P. gentlemen and thank you PT of The JOC.
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Imports from China fell 28.3% year-on-year in June, after higher tariffs on goods from the country's top ocean trade partner extended a steep drop that began in May. Overall container imports fell 3.5% from June 2024 levels, coming in at 2.2 million TEUs. China imports totaled 639,300 TEUs last month. The retreat followed an extended run of near-record imports fueled by importers rushing in goods to beat tariff deadlines.
In the latest course correction in our busiest trade lane, carriers are set to deploy less tonnage in August as spot rates are falling, and retail import forecasts weaken.
Escalating trade tensions and ongoing tariff uncertainties are adding to rising labor costs, prompting technology giants to accelerate the diversification of suppliers away from China.
While the diversification of manufacturing has been a long-term trend, the recent increase in that shift is being driven more by the need to reduce short-term risk in the face of recent trade disruption rather than a desire to completely divest from China. Thailand and Vietnam have nearly doubled their tech suppliers since 2019, while companies like HP are committing to move 90% of their manufacturing out of China by next year.
CMA-CGM is switching from vessel-sharing agreements (VSAs) to standalone operations across trades out of India in a new strategic approach as it expands its fleet. The Marseille-based liner has finalized operational plans to call off its two remaining VSAs with Hapag-Lloyd and Maersk after Gemini Cooperation-linked realignments. Monsieur Jacques Saade, who passed away in 2011 is looking down with a smile as to the direction his son, Rodolphe, is taking the company.
Container ship newbuild ordering jumped 288% in the first half of 2025, which, while below the pandemic era, is still out-pacing demand growth. Of course, China owns most of the orders. MSC is furthering its lead in vessel tonnage so far this year as it absorbs more than double the amount of new capacity added by No. 2 carrier Maersk.
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The Jacksonville Port Authority now serves as the first Southeast port of call in the Premier Alliance’s East Coast 3 (EC3) container service, which directly connects Jacksonville with ports in Thailand, Vietnam, Singapore, and Sri Lanka. Operated weekly by Ocean Network Express, HMM and Yang Ming, the revised service reduces transit times from Asia to Jacksonville by as much as five days.
The International Transportation Service (ITS) terminal in Long Beach will begin a $365 million upgrade on Monday that will increase its container capacity by about 50% and enable it to work two 18,000-TEU ships simultaneously.
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 | | The BNSF railroad has filed an emergency petition with the STB to intervene in a dispute with the UP in which BNSF alleges UP is blocking the launch of a new freight service between the Port of Oakland and Salt Lake City. The impasse threatens supply chain disruptions for ocean carrier CMA-CGM, which has cargo booked on the service that is due to begin later this week. The disagreement involves how the BNSF will route trains between Oakland and Salt Lake City. BNSF wants to run a double-stack intermodal service along the so-called Northern Route, which passes through Northern California and Nevada. UP said BNSF must instead use the Southern Route over Donner Pass near Lake Tahoe, where UP invested in costly tunnel upgrades more than a decade ago. The route selected has financial implications for both Class I railroads, including how many train crews are needed and whether BNSF would owe Union Pacific millions of dollars for using the upgraded Southern Route. The BNSF has the right to use UP-owned tracks between Oakland and Salt Lake City. However, UP controls dispatching and provides train crews, and without its cooperation, BNSF cannot move containers across the corridor. The dispute, meanwhile, threatens the launch of an international intermodal service scheduled for later this week. CMA CGM called the matter “deeply concerning” and costly for cargo owners. BNSF said emergency relief is necessary given freight has already arrived in Oakland. There is potential for business growth in Salt Lake City for ocean carriers. In 2020, ocean carriers handled nearly 52,000 TEUs between Oakland and Salt Lake City. The total, however, has fallen each subsequent year, ending last year at 16,600 TEUs. If ocean carriers were able to return to the 2020 total, it would be enough volume to support multiple trains per week in both directions, although it’s unlikely there would be daily trains.
Intermodal rail service is on an upswing in 2025 after a slow winter start. Average train speeds rebounded quickly and are now running faster than a year ago. Just as important, trains are moving with fewer hiccups. Two key indicators of disruption, intermodal trains held for service issues and railcars idling containers for 48-plus hours, have come in under their long-term averages. There are fewer crew shortages, locomotive problems, or congestion on the tracks. With volumes up year over year, this smoother performance signals that railroads are handling increased demand without the same logjams as in the past, a promising sign with peak season ahead. That is, if we ever see a normal peak season.
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| | | According to our Air Forwarders Association, The One Big Beautiful Bill Act is a landmark moment for the air cargo and logistics industry. They state that this legislation delivers the modernization our industry has long needed from billions in FAA funding to overhaul outdated radar, telecommunications, and air traffic control systems, to major investments in runway safety and airport surveillance. Just as importantly, it reflects the members’ successful advocacy, together with the National Customs Brokers & Forwarders Association of America, to address airport truck congestion, with the Government Accountability Office now conducting a crucial study to help clear landside bottlenecks. Significant changes to the De Minimis exception, due to come into effect in less than 30 days, alongside a surge in Customs and Border Protection funding, will reshape how we handle e-commerce and cross-border compliance. While challenges lie ahead, this Bill is a clear win for forwarders, infrastructure, and the future of air cargo, they further stated.
ATA President and CEO Chris Spear had already touted the economic benefits of the Bill, which was Signed into law on Independence Day.
United Airlines said on Tuesday that it would restart its passenger and cargo services to Tel Aviv, Israel, on July 21.
W/W air cargo demand dropped by around 3% in the first week of July, due mainly to a fall in volumes from No. America linked to Independence Day holidays, but average worldwide rates rose by around 2%, week on week (WoW), thanks to rises from all the main global origin regions apart from No. America. There were few signs of a final surge in exports to the USA ahead of what was expected to be a key tariff deadline date of July 9th, subsequently delayed until August 1st, although that traffic may also have been affected by the ‘Fourth of July’ celebrations here.
Average w/w air cargo rates rose by 2% in June, month on month (MoM), taking them -1% below their level in June 2024, based on an average of spot rates and contract rates. Especially air cargo rates to the USA from the Transpacific(other than China) which rose significantly in June, as the markets continue to adjust to volatile trade and tariff policies.
Average full-market rates from the Transpacific excluding China and Hong Kong to the USA rebounded to $5.19/K in June, an increase of around 10% compared with the previous month and their level in June 2024. In contrast, volume from China and Hong Kong to the USA in June were down by around 15% compared with their level in March, prior to the introduction of higher US tariffs, and around -11% below their level in June 2024.
In comparison, tonnages flown from China and Hong Kong to Europe have continued to rise, in June reaching their highest levels this year and taking them 15% higher than their level in June 2024.
Vietnam’s air cargo exports to the USA are mounting, with higher tariffs on China providing a powerful incentive for our importers to shift sourcing to the SE Asian manufacturing nation. Air cargo volumes generated by frontloading ahead of “reciprocal” tariffs in April and the subsequent 90-day pause on those tariffs in early May were piled on top of an already super start to the year. Vietnam-USA volumes out of HCM airport were up 62% through April compared with the same period last year, with 97,000 tons of cargo carried across the Pacific. Many believe that Vietnam was affected both by tariffs on its own imports as well those on other countries, notably China. The latest tariff framework agreement between the USA and Vietnam, while still short on details, would likely result in Vietnam’s volume growth continuing. As long as China’s tariffs remain higher than those in Vietnam, we can expect an increase in new imports from Vietnam that could replace lost imports from China.
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The National Motor Freight Classification changes for LTL shipments will go live July 19, 2025.
Werner Enterprises is off the hook. In a ruling that’s sending shockwaves through the legal and trucking worlds, the Texas Supreme Court has tossed out a $90 million “nuclear verdict” against the carrier and its driver. The court says the fatal crash wasn’t their fault, and that being in the wrong place at the wrong time isn’t negligence. What happened: A pickup spun out on an icy interstate and slammed into Werner’s truck. A Houston jury still hit the carrier with a massive verdict. Now, that judgment has been reversed.
Here in the USA as we Americans enjoyed fireworks and barbecues for our 249th birthday, another group was making plans of a different kind: cargo thieves. Every year, the days around Independence Day see a notable spike in criminal networks seizing shipments of everything from TVs to energy drinks to vital medical supplies, exploiting the disruptions and reduced oversight that come with our holiday rush. It’s all part of a growing cargo theft epidemic. Once a sporadic nuisance, it has metastasized into a nationwide criminal enterprise that is bleeding the U.S. supply chain to the tune of more than $35 billion each year; and every day, we, Americans are the ones footing the bill. These thieves aren’t just smashing locks in the dead of night. Sophisticated criminal rings are exploiting weaknesses in our digital infrastructure, using ever-evolving cyber fraud and identity theft to impersonate legitimate carriers and hijack loads without ever touching a crowbar, often rerouting freight before it even leaves the warehouse. Others target trucks and trailers at rest stops and distribution centers, threatening the personal safety of drivers who are simply doing their jobs. The consequences ripple far beyond the loss of goods. Small trucking companies face higher insurance premiums or go out of business. Retailers, already navigating global supply chain headaches, must absorb delayed deliveries and inventory losses. Consumers see price hikes and empty shelves. And for our drivers, often the last line of defense, the stress of constant vigilance becomes a daily burden, if not a more serious physical risk.
A PA Coca-Cola driver has filed a federal suit against Teamsters Local 585 also in PA.
Josh Hammaker is charging Teamsters union officials with violating federal law by threatening to get him fired if he did not formally join the union, and with that forcing him to pay for union expenditures including union political activities. Hammaker filed his charges at the National Labor Relations Board (NLRB) with free legal aid from National Right to Work Legal Defense Foundation staff attorneys. We shall see...
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The frontloading of import cargo has placed a strain on the local LA warehouse capabilities and now…
Cost-Effective Warehouse Space on the West Coast is close at hand…
With trade dynamics constantly shifting, having flexible and dependable warehouse solutions has never been more critical. At Primary Freight, our Southern California facility is strategically positioned to support a wide range of needs—from local businesses to nationwide corporations.
Whether you need transloading, long-term storage for inventory and materials, or short-term solutions for front-loaded goods, we’ve got you covered. Avoid costly demurrage, detention, and chassis fees by storing with us. Our team is ready to help you streamline your supply chain, reduce overhead, and keep your operations moving smoothly.
Let’s talk about how we can support your warehousing needs today.
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