SCS Weekly Rundown | April 2nd, 2024
February Sees An Uplift Across The Gulf Coast
Cargo and oil gains mark a robust trade month in Corpus Christi and New Orleans.
February brought a notable uptick in cargo and crude oil shipments at Gulf Coast ports
like Corpus Christi and New Orleans, signaling a strong month of trade. New Orleans
saw a significant rise in container volumes with a mix of imports and exports, while
Corpus Christi experienced growth in total shipments, led primarily by crude oil.
Read all the details on this story here.
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Sweeping Layoffs for Both UPS and FedEx
Logistics giants downsize to tackle market demands and operational challenges.
FedEx and UPS are reducing their workforce to streamline operations and manage
economic pressures, including FedEx's organizational layoffs in Georgia due to a client
move, and UPS's elimination of over three hundred jobs at it's Ontario, CA, air hub
because of reduced air volumes. These moves reflect efforts to navigate cost-cutting
and rising operational expenses in a challenging market.
Learn more about this trend here.
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Red Sea Tensions Rise Without Market Impact
Tensions in the Red Sea have yet to impact shipping rates due to overcapacity.
Despite Russian naval maneuvers and Houthi threats in the Red Sea, overcapacity in
the shipping industry has kept spot rates steady. Increases in shipping times and rates
have been unsuccessful at sustaining long-term growth, with global indicators actually
signaling a decline. The situation continues to highlight the complex roles geopolitics
and global shipping economics share with one another.
Read about the ongoing impact of this situation here.
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Investments & Factory Plans Surge in Mexico
Mexico is seeing an influx of investments as firms rethink their supply chains.
In the first quarter of 2024, Mexico experienced a substantial investment boom, driven
by companies aiming to realign their supply chains and establish their manufacturing
presence closer to the U.S. The move is set to create thousands of jobs in the next few
years, with investments mainly coming in from the U.S., Germany, Argentina and China,
who are all focusing heavily on Mexico's manufacturing sector and indicating a
strategic pivot in global trade approaches.
Dive into the full article here.
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