SCS Weekly Rundown | March 12th, 2024

  A Shift To Mexico Has Revitalized Crossborder

    Domestic production has ramped up following heightened foreign investment.

    Mexico's remarkable increase in foreign investments has led the way in nearshoring
    efforts, with a list of new companies expected by mid-2025. This shift aims to diversify
    supply sources away from distant regions and promote closer economic ties under the
    USMCA, providing a boost to infrastructural developments beyond our borders.

    Learn more about this ongoing story here.
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  Transit Times Surge, Carrier Leverage Wanes

    The Red Sea conflict has led to significant increases to both transit times and rates.

    Forcing carriers into continent-spanning reroutes has left a noticeable impact on container
    spot rates, unsurprisingly. Despite some initial traction, rates are now declining, which may
    be a sign that carriers don't hold as much power as before. The situation perfectly highlights
    supply chain vulnerabilities, as well as the value of adaptive strategies.

    For all the details, dive into the full story here.
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  FedEx Pilot Contract Discussions Stall

    Pilots at the freight giant are pushing for contract freedom with a strike looming.

    Represented by the Air Line Pilots Association, FedEx pilots are requesting their exit from
    federally mediated contract negotiations, which is a move that could lead to a strike if no
    resolution is found in time. Negotiations had previously stalled over retirement, pay, and
    quality of life improvements with hopes of better results this time around.

    Get the specifics on this situation here.

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  Freight Volumes See Glimpse Of A Rebound

    Data from February hints at a slow, yet promising recovery for the freight industry.

    With a modest boost in shipments last month, the freight cycle has started showing signs
    of improvement, albeit, still lower than this point one year ago. The smallest year-to-year
    decline in ten months suggests this could be the beginning of a lengthy recovery, with
    experts remaining cautiously optimistic for the industries long-term outlook.

    Learn about where the industry stands here.

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