Tariff Talk Thursday is Back!
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Tariff Talk Thursday is Back!
Visit our Events page for details or register here.
DECEMBER 13, 2024
Announcements and nominations for the incoming U.S. Presidential Administration are keeping the logistics industry on alert. Concerns over potential tariff increases are driving up demand on Asia-to-U.S. trade lanes, while consumer confidence remains steady. Over Thanksgiving weekend, 197 million shoppers hit stores—nearly 10% above the National Retail Federation’s projection of 183.4 million. Whether this momentum carries into early 2025 remains to be seen as the inauguration approaches.
Meanwhile, the U.S. East Coast port strike looms closer, with negotiations breaking down once again. National organizations are calling for urgent intervention, urging all parties to maintain open and productive dialogue.
The latest volley between the U.S. and China centered on export controls, not tariffs. China’s Ministry of Commerce (MOFCOM) published a dual-use items export control list resembling the U.S. Commerce Control List but applied as a general export measure rather than targeting specific countries.
The U.S. Department of Commerce Bureau of Industry and Security (BIS) announced two new rules directed at China. These include tighter controls on high-bandwidth memory modules and semiconductor manufacturing equipment (SME) with the intent of hampering Chinese manufacturing. Additionally, “red flag” guidance was published, along with an additional 140 additions to the Entity List.
The 2024 air freight peak season has extended into 2025, driving higher rates and capacity challenges. Key factors include rising e-commerce demand from Asia, disruptions in the Red Sea causing air diversions, and increased reliance on air freight to offset impacts from the U.S. East and Gulf Coast port strike.
Peak season often brings high, volatile rates, along with frequent delays and rolled cargo.
U.S. trucking companies added over 2,000 jobs to non-seasonally adjusted payrolls in November 2024 after two months of declines. However, the workforce on loading docks and behind the wheel remains smaller than a year ago.
At 1.56 million, November’s for-hire trucking employment, as reported by the BLS, lags behind November 2023’s unadjusted figure, reflecting a persistent freight downturn rather than a market recovery.
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