Nuvocargo, a startup freight forwarder and customs brokerage, acquired Atlanta brokerage Oncarriage, the company said in a news release. Nuvocargo, which launched publicly on March 12, described itself as “the first digital freight forwarder and customs broker for U.S./Mexico trade.” The purchase allowed Nuvocargo to enter the market faster than expected, it said. Oncarriage is “a traditional freight forwarder and customs broker that already held key government licenses in USA that Nuvocargo required -- including one that normally takes up to three years to obtain,” Nuvocargo said. The acquisition allows Nuvocargo “to save years of regulatory hurdles to launch and begin serving shippers,” it said.
The American Association of Port Authorities canceled its March 17-19 conference in Washington, D.C., to protect the health of attendees.
The end of March “is predicted to be a robust month in terms of exports picking up from China,” C.H. Robinson said in an update. Considering the blank sailing schedules, “we expect demand to surpass capacity on the Trans-Pacific in the next few weeks,” the company said. There's also been a decrease in empty container supply “in regions where China trade has been a catalyst, primarily North America and Europe which will lead to backlogs as demand continues to rise.” Meanwhile, “available air capacity in Italy and South Korea has decreased due to canceled passenger flights,” it said. “However, charter operators continue to be in service and have increased movement in areas where demand is needed.”
The COVID-19 outbreak will have “a longer and larger impact” on imports at major U.S. retail container ports than previously thought, the National Retail Federation said March 9. “Factory shutdowns and travel restrictions in China continue to affect production,” it said. Though plants continue to come back online, “there are still issues affecting cargo movement, including the availability of truck drivers to move cargo to Chinese ports,” it said. “Uncertainty has expanded exponentially.” NRF canvassed its membership and found 40% are seeing disruptions to their supply chains, and another 26% “expect to see disruptions as the situation continues,” it said. U.S. retail ports handled 1.82 million 20-foot-long cargo containers or their equivalents in January, up 5.7% from December, but down 3.8% from January 2019, when the Section 301 tariffs spurred “unusually high numbers” of imports, NRF said. It estimates February port activity will be 12.6% lower than a year earlier and is forecasting an 18.3% decline in year-over-year March volume.
Delmar International acquired Rotra, a logistics firm that offers freight forwarding, customs brokerage, and warehousing and distribution services, Delmar said in a news release. Rotra is based in Chicago. “The transaction significantly raises the capabilities and size of Delmar’s USA footprint and workforce, which now exceeds two hundred employees, and operates from coast to coast with seven branches throughout the United States,” said Delmar, which is based in Canada. Terms of the deal weren't released.
The Coalition of New England Companies for Trade won't hold its annual conference that was scheduled for March 31 - April 2 in Newport, Rhode Island, “due to growing concerns about Covid-19,” CONECT said on its website. "We are working to reschedule the conference and information will be posted when it is available," it said.
Best Buy has done an “admirable job mitigating the impact of tariffs,” Wedbush Securities analyst Michael Pachter wrote investors Feb. 27, but pressure from tariffs will “swiftly shift to pressure from supply chain disruption,” at least through the first half of the year. Supply chain problems due to the coronavirus are an “elevated concern” for the retailer, with the full impact of disruptions currently unknown, Pachter said. About 60% of Best Buy’s cost of goods sold originated in China last year, “but should be closer to 40%” in 2020, Pachter said, “still highly exposed in our view.”
National Retail Federation CEO Matthew Shay downplayed the expected impact of the coronavirus epidemic on U.S. retailers, speaking on a Feb. 26 call with media about the group's 2020 forecast. NRF forecast that 2020 retail sales will grow by 3.5%-4.1% to more than $3.9 trillion, “despite uncertainty from the lingering trade war, coronavirus and the presidential election.” Citing conversations with retail executives, Shay said news about the retail supply chain is “generally encouraging,” with reports that some China plants are coming back on line and employees are returning to work, after closures due to the coronavirus outbreak. Warning the virus' impact needs to be taken seriously, Shay also said the disruption appears “less severe than originally expected.”
Flexport is starting a new consulting service that will “help importers assess their trade footprint, uncover cost-saving opportunities, establish strong compliance programs, and be better prepared to address unexpected changes in their supply chains,” It said in a Feb. 26 press release. Flexport’s Trade Advisory Services provides customized guidance using data analytics through the same platform as Flexport customers, the release said. “By using technology-powered data analytics, we can examine your supply chain all the way to the SKU-level, and this allows for a more precise identification of cost-saving opportunities, compliance risks and other inefficiencies or outliers,” said the new division’s director, Adam Dambrov. The service is currently available in the U.S., with plans to expand to Canada, Europe and Asia later this year, Flexport said.
The National Council of Textile Organizations said “we stand ready to assist brands and retailers looking to shift sourcing during this uncertain time,” as the coronavirus outbreak disrupts Asian textile and apparel manufacturing. Even companies that manufacture in other Asian countries can be affected if the factories in Bangladesh or Vietnam rely on Chinese fabric. Central America, Mexico and Caribbean Basin countries have “immediate capacity to meet worldwide demands with duty-free access through well-established supply chains,” the NCTO said Feb. 25. It also said that its members have been in touch with the U.S. government to identify U.S. companies that can provide surgical masks and other items used to contain the spread of the coronavirus.