The preliminary agreement reached today between the U.S. and Mexico still faces several hurdles to passage, namely an insistence from retailers and organized labor that any new compact be trilateral in nature and include Canada.
The agreement would normally need to be ratified by two-thirds of the U.S. Senate, though in some cases an international agreement can be approved by Congress or just by the President through an executive order if it is determined to fall within his constitutional powers to take such action.
The Canadians, who have been at odds with the Trump administration over various trade issues and whose Prime Minister, Justin Trudeau, has been the sporadic target of Trump's tweet-driven barbs, were not party to the agreement. According to published reports, efforts are being made to bring Canada into the fold as early as the end of this week, thus keeping the trilateral relationship that has been in place since the original North American Free Trade Agreement (NAFTA) took effect at the start of 1994. However, President Trump has never been a fan of multilateral agreements, preferring to negotiate bilateral pacts with trading partners.
To the National Retail Federation (NRF) and the Teamsters union, two groups with seemingly little in common, any new agreement that doesn't include Canada is a non-starter.
"Coming to terms with Mexico is an encouraging sign, but threatening to pull out of the existing agreement is not," said NRF President Matthew Shay. "NAFTA supports millions of U.S. jobs and provides hardworking American families access to more products at lower prices. To preserve these benefits and protect complex, sophisticated and efficient supply chains, the administration must bring Canada, an essential trading partner, back to the bargaining table and deliver a trilateral deal."
In a separate statement, Teamster President James P. Hoffa said that Canada "must be part of the agreement. The interests of all North American workers must be included as part of any trade agreement that is ultimately approved."
Hoffa, like Shay, lauded today's announcement as a positive first step towards improved trade relations. Most observers believe that NAFTA needs to be updated to bring it into the current continental and global business environment. Most, however, are opposed to scrapping it in favor of separate bilateral agreements.
A 7-page fact sheet published today by the U.S. Trade Representative (USTR) contained little as it related to transportation. The one highlight was changes in the "de minimus" value of shipments under which threshold U.S. exporters could avoid customs duties and taxes, as well as burdensome compliance requirements. Under the new agreement, Mexico raised the threshold from $50 to $100. Canada's de minimus threshold is just $20, meaning U.S. exports above that level must meet Canada's duty regime and comply with significant paperwork regulations.
In its fact sheet, USTR said the change will benefit small to medium-size U.S. exporters that often lack the financial wherewithal to meet the tax and duty burdens, and the resources to bear the increased compliance costs. U.S. express carriers that typically transport most of lower-valued goods will also benefit through lower costs and improved efficiency, USTR said.
The U.S.' de minimus threshold stands at $800, one of the highest in the world. The highest is in the country of Georgia, where goods' value of under $1,302 per shipment is exempt.
One observer called this a "face-saving" gesture, saying the size of the increase is minimal. Another took a different view, saying any action that reduces an exporter's compliance costs or time-consuming requirements is a positive step, even if the dollar amounts seem small. Both asked not to be identified.
The USTR fact-sheet makes no mention of changes, if any, to the original rules that opened up the cross-border trucking market beyond a long-standing border commercial zone to Mexican carriers. The Teamsters, which did not comment beyond the statement today, have long opposed the provision, saying it would allow in unsafe Mexican carriers whose labor costs are well below those of U.S. truck drivers.
However, it is believed the language has done little to affect the cross-border trucking landscape because of Mexican carriers' fear of liability arising from civil lawsuits, and because Mexican carriers are prohibited from hauling freight between points within the U.S. after dropping off their domestic loads.
The U.S. imported $294.2 billion in Mexican goods in 2016, according to USTR figures. The U.S. imported $278.1 billion from Canada in 2016, the agency said.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”