After months of altercations between the U.S. and China on trade tariffs, the D day is nearly upon us as the 25% tariffs on 1,102 Chinese products would officially commence by July 6. Global supply chains have been bracing for impact, as this would usher a new age of how business is done between the two powerhouse economies.
Certain U.S. companies have already switched over to South Asian countries like Vietnam for raw material supply, as it can circumvent the 25% tariff and also provide cheap labor. The Vietnamese government is seeing this as an opportunity and is opening up to foreign investment, while planning to make the processes transparent and easy for businesses to set shop.
While some companies could work afford to make the switch, not all can as Chinese production capabilities cannot be matched by any of its neighbors as yet. The retaliatory measures from China would soon follow, which might end up making it a sour affair, but some economists do argue that the impact of tariffs would be negligible over the long-run.
Did you know?
According to SAFE, autonomous vehicles (AVs) will add between $3 trillion to $6 trillion in cumulative consumer and societal benefits to the U.S. economy by 2050. Annually, $800 billion in economic and societal benefits could be realized when AVs are fully deployed.
"We’re seeing full utilization, and project continuing to for the remainder of the year with only possible modest softening toward the end of the year, but not because of lower demand but because of increased infrastructural capacity."
- Avery Vise, VP of Trucking Research on the spot market
In other news:
CVSA’s annual driver-focused enforcement blitz a month out
During the weeklong blitz, enforcers will be focusing on traffic violations, seat belt enforcement, driver roadside inspections and driver regulatory compliance.(CCJ)
One Year Later: The Aftermath of Amazon's Acquisition of Whole Foods Lingers
One year after Amazon announced its acquisition of Whole Foods, grocers have been racing to amp up their online presence in order to compete with the company. (Food Logistics)
Daimler Trucks' Martin Daum Warns That Tariffs Will Increase Production Costs
New U.S. tariffs on steel and aluminum imports could ultimately raise the price of trucks sold in the United States, top executives at the world’s largest commercial vehicle manufacturer warned. (Transport Topics)
STEMCO TrailerTail Used for New Concept Vehicle
STEMCO® has partnered with Shell and the AirFlow Truck Company to provide a custom TrailerTail® for the new Starship concept vehicle with goal of using the Starship’s innovative aerodynamic design to change how efficiency is measured and addressed in the commercial trucking industry. (Fleet News Daily)
The Final Mile: Challenge or Opportunity?
Final mile logistics is attracting a lot of interest in e-commerce markets. While companies have opportunities to gain new customers by offering more buying and delivery options, these often same-day home deliveries do not come without challenges. (Logistics Viewpoints)
India and China are sitting down today to discuss about the feasibility of creating an oil buyers’ club, to help seek better bargains from OPEC. The Asian powers accounted for nearly 17% of the world’s oil consumption last year, and are looking to leverage their position in rein in the climbing oil prices. Analysts believe that this meeting could have a bearing on the OPEC meeting that is taking place later this month.
The Indian government has been particularly hit with the rising oil prices, as its currency - the Indian rupee - fell spectacularly against the U.S. dollar, sinking by over 7% since January 2018. India’s dependence on oil import has meant that the government would do everything in its power to bring down the prices. Sources from inside the government have mentioned that the boom in U.S. shale oil production could act as a bargaining chip against OPEC which now ceases to be a monopoly in oil export.
If the meeting goes as per plan and a oil buyers’ cartel is indeed created, it could prove to be a major resistance to the freely climbing oil price - helping everyone at large and the freight industry in particular.
Hammer down everyone!
Stay up-to-date with the latest commentary and insights on FreightTech and the impact to the markets by subscribing.