Holiday Season Returns Will Set Record, UPS Predicts

December 26, 2019

This holiday season is projected to be so busy, one parcel carrier even expects to set a record for returned merchandise.

UPS on Nov. 4 forecast that its holiday returns will peak at 1.9 million packages on Jan. 2, a 26% increase from last year’s peak returns day. Plus, the Atlanta-based carrier said it expects to handle 1.6 million returns per day the week before Christmas Day, a spike it attributes to retailer promotions that will prompt shoppers to buy gifts early.

Overall, the company expects total returns volume this holiday season will set a record — little wonder considering the volume of total holiday shipments it and other carriers and industry watchers are expecting.

For the full story, please click HERE

SourceTransport Topics

China Marks Jan. 1 with Tariff Reduction on 850 Products

December 26, 2019

The Chinese government has announced that it will reduce import tariffs on 850 products starting Jan. 1, 2020

China’s State Council Customs Tariff Commission in Beijing approved the reductions on Dec. 23.

“The adjustments will be made to expand imports, promote the coordinated development of trade and environment, advance the high-quality development of the jointly building of the Belt and Road,” the Chinese state-run Xinhua News Agency reported.

The Customs Tariff Commission said the new import tariffs will be lower than the most-favored-tariff levels currently in place for the 850 products, such as frozen pork and avocados, orange juice, specialty metals for electronics and paper and wood products. Some imports, such as the chemicals used to manufacture asthma and diabetes treatments, will have zero tariffs.

For the full story, please click HERE

Source: American Shipper

Intermodal Volumes Slip in November, Reports IANA

December 19, 2019

November intermodal volumes continued an ongoing run of declines, according to data provided to LM by the Intermodal Association of North America (IANA).

Total shipments for the month—at 1,441—were down 18.5% annually. Domestic containers—at 653,626—saw a 2.6% decline, while trailers—at 93,147—slumped 24.5%. All domestic equipment—at 746,773—was off 6%. ISO, or international, containers—at 694,501—saw an 11% decline.

On a year-to-date basis through November, IANA reported the following:

  • domestic containers fell 4.7% to 6,975,343;
  • trailers were down 14.8% to 1,123,614;
  • all domestic equipment was off 6.2% to 8,098,957; and
  • ISO containers slipped 1.4% to 8,638,016

These numbers are in line with how current intermodal market conditions have played out for several months, with myriad factors that have influenced intermodal throughout the year remaining intact, including loosening truck capacity putting pressure on domestic intermodal, and changes in trade policy eating away at container volumes and subsequently international traffic.

For the full story, please click HERE

SourceLogistics Management

Amazon Bans 3rd Party Sellers from Using FedEx Ground to Ship Prime Orders

December 19, 2019

Amazon ceased shipping orders with FedEx Express and FedEx Ground after FedEx declined to renew the retailer’s contract this summer. At the time, FedEx was carrying roughly 1.6% of Amazon’s total package volume, representing 1.3% of the carrier’s overall revenue. Executives said the cost-intensive nature of the retailer’s shipments meant dropping them could open resources for FedEx to expand its customer base in the broader e-commerce market.

Since then, all eyes have been on both companies as they work their way through peak season.

As Cyber Monday hit, reports began to surface that Amazon was not living up to its Prime delivery promises. According to data from ShipMatrix, a consulting firm, Amazon vans delivered 93.7% of packages ordered during the week ending in Dec. 7 on time, down from 98.2% in 2018.

For the full story, please click HERE

SourceSupply Chain Dive

Trucks Carried 72% of all US-Mexico Freight in October

December 19, 2019

Truck freight volumes between US and Mexico decline for only the second time in 12 months; trade was down 2.9% compared to 2018

Trucks continue to carry the majority of cross-border imports and exports during the month of October, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).

Cross-border truck freight between the U.S., Canada and Mexico totaled $68.2 billion, or 64% of all cross-border freight during October, down 3.3% compared to October 2018.

Along the U.S.-Mexico border, trucks carried 72% of all freight, moving loads valued at $38.2 billion in October 2019, compared to $39.4 billion during the same period in 2018, a decline of almost 3%.

It represented only the second time in 12 months that freight volumes between the U.S. and Mexico decreased.

In June 2019, cross-border freight declined 1% compared to the same period in 2018. Some of the decline in freight volumes can be attributed to border wait times rising in April and May when President Trump threatened tariffs against Mexico on immigration issues.

Truck freight between the U.S. and Canada totaled $30 billion in October, down 2.5% compared to the same period in 2018.

For the full story, please click HERE

SourceFreight Waves