Jaguar Freight | The Weekly Roar: Groups pushing to preserve the USMCA, details from a key logistics survey, revoked authorization for Iranian oil sales, new limits placed on the Panama Canal, and calls for better EU funding for decarbonization

Retail, manufacturing, and apparel trade groups are pushing for the preservation of the USMCA trade agreement. They’re highlighting the huge role it plays in North American supply chains, job creation, and economic stability. They’re clear that they still back the annual review process, but they’re also warning that maintaining duty-free trade and the framework of the pact is essential if the three countries want to prevent disruptions, protect investment, and ensure long-term growth for regional industries.

The Logistics Managers Index reached 71.1 in June, the highest level since March 2022, signaling robust growth and demand in the industry. Most notably, inventory levels are up 5.7% to 60.5, and warehousing prices climbed 3.1% to 73.8. In both cases, that reflects increased business activity across the economy. Meanwhile, warehousing capacity remains tight and utilization high, indicating continued pressure (and higher rates) within the storage and inventory management categories.

The shaky U.S.-Iran ceasefire appears to have broken down. The U.S. has revoked its temporary authorization for Iranian oil sales after attacks on three vessels in the Strait of Hormuz. This is obviously bad news for many reasons, but for the moment, the small amount of additional vessel traffic that began when the MOU was signed appears to be continuing. The strong political rhetoric and some bombing have returned, but ships are still moving (for now).

In a reminder that the Straight of Hormuz and the Red Sea are not the only key potential chokepoints for global supply chains. The Panama Canal Authority is set to further lower the maximum authorized draft for Neopanamax vessels to 49.0 feet on July 24, then 48.5 feet on August 15. This is in response to a strengthening El Niño and reduced rainfall. The purpose of the measures is to try to conserve water and ensure safe operations, though canal throughput remains strong in the face of continued shipping demand and global route disruptions.

A study by European Shipowners | ECSA estimates that shipping generates around 9 billion euros annually for EU member states from the EU emissions trading system. However, only a small share of that amount supports maritime decarbonization, with sustainable fuels still far more expensive. The ECSA recommends earmarking more EU ETS revenue for clean tech, fuel investments, and shipping.

Compliments of Jaguar Freight – A member of the EACCNY