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US Logistics Update [Jan 11, 2025]-English

U.S. Economy


  • The minutes of the Federal Reserve's (Fed) December Federal Open Market Committee (FOMC) meeting released on January 8 indicated that “most members present judged that the risks to upside inflation had increased and cited recent stronger-than-expected inflation data and the implications of potential changes in trade and immigration policies as evidence of this,” suggesting that Fed members were concerned about inflation and the uncertainty of what Donald Trump's second-term administration's policies would mean for the economy, and may need to slow the pace of interest rate cuts.

 

  • Four wildfires in the Los Angeles (LA) area of California continue to rage for a fifth day, causing a snowballing loss of life and property. According to the County of Los Angeles, at least 13 people have died and an estimated 12,300 structures have burned. Currently, 153,000 residents in LA County have been ordered to evacuate, and another 166,000 are under an “evacuation warning” to be prepared to leave at any time. The combined area of the four wildfires is 156.3 square kilometers, a little more than a quarter of the size of Seoul (605.2 square kilometers), but with less than 20 percent containment, the area is expected to grow. On September 9, the Street Journal cited JPMorgan as estimating that the economic losses from the LA wildfires have reached $50 billion (about KRW 73 trillion) to date, making it “the most costly fire in U.S. history.” The previous costliest natural disaster was in 2005. Hurricane Katrina hit the southeastern United States, including New Orleans, in 2005, with an inflation-adjusted cost of $102 billion (approximately KRW 148.9 trillion).

 

Maritime Cargo Market Trends


ㅇ  North America Vessel, Rail Dwell time (Week 2 / Flexport)


  • U.S. East & Gulf ports labor agreement settlement

    The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX), the labor unions for the U.S. East and Gulf ports, announced late Wednesday night (January 8) that they have tentatively reached agreement on a new six-year master contract covering ports from Maine to Texas (see January 9 Breaking News). Details of the agreement are still being withheld.

 

  • U.S. Government Classifies COSCO as a Chinese Military Enterprise

    The US government has labeled COSCO a “military asset” and placed it on a government list, Lodestar reported. This comes after reports that COSCO ships participated in Taiwan invasion drills. The list includes 133 Chinese companies, including China Cargo Airline (CK). While no sanctions against COSCO are currently included, it will be interesting to see what happens under the Trump administration, which has been outspoken in its hostility toward China. Sources suggest that COSCO's ability to transport U.S. defense-related goods may be restricted in the future, which could be problematic for COSCO's Ocean Alliance partner CMA CGM, which has a U.S. carrier, American President Lines (APL), to transport U.S. government goods.

 

Trucking Market Trends


  • Winter storm in the northern US causes logistics disruptions

    Due to the winter storm hitting the northern U.S., roads are closed or there is a shortage of drivers, causing delays in cargo pickup and delivery, and trucking freight rates are rising by more than 20-30%.






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