Commerce and MACOM partner to support U.S.
The U.S. Department of Commerce has signed a Preliminary Memorandum of Terms (PMT) with MACOM Technology Solutions Inc. proposing up to $70 million in direct funding under the CHIPS and Science Act. This investment is designed to increase the resiliency of the U.S. defense and telecommunications supply chain by expanding and modernizing MACOM's facilities in Lowell, Massachusetts, and Durham, North Carolina. Also Read: Commerce Department Expands Advocacy Efforts to Boost U.S. Global Competitiveness The move is expected to create up to 350 new manufacturing jobs and nearly 60 construction jobs in the two states. "This announcement demonstrates how CHIPS for America is making strategic investments to strengthen supply chain security and advance U.S. technology leadership," said U.S. Commerce Secretary Gina Raimondo. Designated by the Department of Defense (DoD) as a Category 1A Trusted Foundry, MACOM's facilities play a critical role in the production of advanced compound semiconductors. These components support high-frequency defense systems such as radar and are critical for…
The Department of Commerce expands publicity efforts to promote the United States to go global
The U.S. Department of Commerce has unveiled an expanded program to support U.S. companies competing for major international investment and concession projects. The move comes in response to increasing competition in global markets, particularly from strategic rivals, and industry demand for stronger tools to counter unfair foreign practices. Also Read: US Commerce Department reaches preliminary $162 million agreement with Microchip Technology to strengthen semiconductor supply chain The expanded Advocacy Center services will focus on helping U.S. companies secure contracts in key sectors such as energy, infrastructure and critical minerals. These efforts are expected to boost the U.S. economy by boosting export growth and strengthening supply chains. "This marks an important step forward in leveling the global playing field for American businesses while strengthening America's leadership on the world stage," said U.S. Commerce Secretary Gina Raimondo. "Economic security is National security. By meeting the needs of our companies and building stronger business relationships, we are creating jobs, strengthening our industrial base…
U.S. jobless claims decline as labor market remains stable
The number of new U.S. jobless claims unexpectedly fell last week, signaling a strong labor market as 2024 draws to a close. In a surprising development, the Labor Department reported that initial jobless claims fell by 9,000 to a seasonally adjusted 211,000 in the week ended December 28. For more details, visit the original report here. Also read: Post-Christmas rejection surge in U.S. truckload market The data, analyzed by economists polled by Reuters, showed the employment sector was in much healthier shape than expected at 222,000. The accuracy of forecasts amid seasonal fluctuations demonstrates the underlying strength of the economy. Other insights from IndexBox suggest employment continues to be stable, with recruitment agencies showing the number of people receiving benefits fell by 52,000 to stabilize at 1.844 million. In response to economic resilience, the Fed has chosen a conservative approach, forecasting just two rate cuts in 2025 instead of the four forecast earlier this year. The decision reflects confidence in…
Rejection rates surge in U.S. truck market
The U.S. truckload market has seen a significant shift, driven by the recent Christmas holiday, with the Outbound Tender Rejection Index (OTRI) exceeding 10% for the first time since April 2022. The surge in rejection rates indicates that capacity is declining, making it more challenging for shippers. Also Read: Truck Spot Rates Surge During Peak Season The precarious balance in the truckload market has resulted in spot rates rising nearly 10% from 2023 levels (excluding fuel costs). The current situation is a far cry from its post-pandemic highs, when OTRI had been hovering above 20% for nearly 18 months, resulting in procurement issues for 1 in 5 loads. This changing landscape still poses challenges as the market moves from oversupply to a more volatile and tense environment. Shippers have taken strategic steps to address these shifts, such as extending delivery times and supporting intermodal options. Domestic container throughput surged more than 10% year over year, easing pressure on West Coast…
U.S. container imports see historic growth
A report by industry expert John McCown shows that U.S. container imports increased for the 14th consecutive month in November, with arrivals at the country's top ten ports increasing 13.1% year-on-year. The growth represents one of the strongest periods in container shipping history outside of the pandemic surge. Also read: Seasonal decline in U.S. container imports slows in November 2024 record-breaking momentum Total arrivals in November reached 2,033,620 TEU, a significant increase from October's 9.7% increase, but still 11.1% below the all-time high in May 2022. McCown noted that the 14.7% increase over the past 12 months was among the highest on record, excluding the pandemic period. "There's no question that we're seeing exceptionally strong and continued volume growth," McCown said. The value of containerized cargo passing through all U.S. ports reached $185.3 billion in November, underscoring the growth driven by strong demand. Coastal adjustment McCown's analysis noted significant changes in port activity, with West Coast ports outperforming East and…
U.S. Department of Energy proposes $7.54 billion in loans for electric vehicles
The U.S. Department of Energy announced a proposal to provide up to $7.54 billion in loans to a joint venture between automakers Stellantis and Samsung SDI. According to Reuters, the move is aimed at promoting the construction of two lithium-ion battery factories in Indiana. This major investment highlights the growing demand and emphasis on electric vehicle (EV) infrastructure, particularly in the development of lithium-ion batteries. According to IndexBox data, U.S. lithium-ion battery exports were worth $3.3 billion in 2023, while imports significantly exceeded this amount, reaching $18.6 billion. Lithium-ion battery trade dynamics Regarding trading partners, the United States exports the most to Canada ($841.7 million), followed by Mexico ($634.6 million), Australia ($546.4 million), the Netherlands ($202.4 million) and the United Kingdom ($191.7 million). In terms of imports, the bulk came from China, which amounted to a staggering $13.1 billion, along with South Korea ($1.5 billion), Japan ($1.1 billion), Hungary ($811.5 million) and Poland ($736.9 million). Once the factory reaches full…
Strikes begin at U.S. Eastern and Gulf Coast ports
At 12:01 noon on October 1, local time, approximately 45,000 dock workers launched a strike at ports along the eastern United States and the Gulf Coast. The workers are represented by the International Longshoremen's Association (ILA), while the 36 major ports affected by the strike are represented by the United States Maritime Union (USMX). Ports from Maine to Texas are affected by coordinated strike action, including New York-New Jersey, Savannah, Charleston, Houston and Mobile, among others. While negotiations for a new collective bargaining agreement began earlier this year, talks between ILA and USMX soured this summer over differing views on the future use of automation in port operations and wage increases for workers. Also read: US East Coast dockworkers strike – key insights from container traders and leasing companies The ILA is asking for new contractual agreements to explicitly protect the future of dockworkers’ jobs by continuing to limit the use of automation. The issue has been contentious throughout negotiations,…
Canada rail shutdown raises fears of economic disruption
Canada's major freight railroads, Canadian National Railway (CN) and Canadian Pacific Kansas City Railway (CPKC), have suspended operations due to a contract dispute with workers, a situation that could have a significant economic impact on the U.S. Supply chain expert and former Toronto resident Dr. Johnny Lentusanasem said the suspension could have a significant impact on the U.S. supply chain, given that Canada is the second-largest trading partner of the United States. Also read: How Canada's rail strike will impact freight markets The Canadian government has stepped in to force rail companies into arbitration with unions, but the duration and outcome of that process will determine the extent of the disruption. The outage affects both the rail and trucking industries, and because rail and trucking are so interconnected, it could cause freight costs to soar or even a complete halt to trucking operations. The unprecedented shutdown, which involves Canadian National Railway Co. and Canadian Railway Corp., also threatens commuter rail…
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