Vietnam is becoming an increasingly attractive destination for businesses due to the rising business costs in China.

With its low labor costs and strong economic growth, Vietnam is well-positioned to become a significant player in the global economy.

"The East Asian country offers European partners numerous advantages, especially due to the free trade agreement with the European Union, which has been in force since 2021." (Hermes)

Here is an inside scoop from Rogers & Brown's very own President, Raymond Kelley, on this matter; "Vietnam is going to be one of the countries that grow a lot due to companies leaving China. 

Mexico, India, and South America are areas expected to see significant growth in manufacturing. You can already see where this has started."

The market is not adequately prepared for the frequency of major disruptive events. The lesson learned is to retain larger buffers in the supply chain or financially account for the savings associated with a lean supply chain to prepare for inevitable disruptive events.

In March 2021, four categories of events with low probability but high impact were listed, including canal blockage, war, cyberattacks, and natural disasters. None of these risks have decreased, and events over the past year indicate that man-made risks have increased. Therefore, companies should prepare for operationally disruptive events by having buffers in the supply chain or creating a financial buffer.

According to the US Bureau of Transportation Statistics (BTS), US imports by truck from Mexico are increasing despite slower US economic growth. This may create more opportunities for the conversion of truck freight to intermodal rail as Canadian Pacific (CP) completes its acquisition of Kansas City Southern (KCS).

Also, the trend of increasing US imports from Mexico is likely to continue, especially with the potential wave of manufacturing nearshoring as more companies move production and sourcing away from China. This will create more demand for transportation and warehousing facilities at border crossing points such as Laredo and El Paso, Texas. Mexican manufacturers are experiencing rising inventory of inputs or raw materials and generally reporting better external demand for their goods, particularly from the US.

South Carolina Ports recorded strong container volumes in February, despite a slowdown in consumer spending due to the rising cost of goods. Loaded exports at the port are up 12% year over year, while vehicle volume is steady.

Investment in port capacity and capabilities has helped the port attract new business, said CEO Barbara Melvin. Expansion of the Inland Port Greer and the building of the dual-served Navy Base Intermodal Facility will enhance intermodal capabilities and attract future investment to the state, she added.

Port Houston is experiencing strong container volumes despite the decline in consumer demand for imported goods. Labor disputes in West Coast import hubs have solidified the Texas port's position as the dominant container port on the Gulf Coast.

In February, Port Houston handled 310,000 TEU worth of containers, an increase of 15% compared to the same month last year. The port's strength in export business has helped to sustain its success, with full export TEU volume rising by 42% this month, driven by strong sales of plastic nurdles and other petrochemical commodities produced locally by Houston's petrochemical industry.

However, the port's administrators expect a softening of overall quayside activity in the coming months as the import downturn sets in.

The South Carolina State Port Authority (SCSPA) has appealed to the Fourth Circuit Court of Appeals in Richmond, Virginia, to prevent the International Longshoremen's Association (ILA) from suing container lines that call on Charleston's newest marine terminal, Hugh K. Leatherman Terminal. The hearing schedule has been accelerated, with oral arguments expected to be heard as early as June 2022. The SCSPA seeks to overturn an earlier National Labor Relations Board (NLRB) ruling that the ILA can sue ocean carriers that call at the Leatherman terminal because it uses non-union workers on cranes and lift equipment.

SCSPA Chief Executive, Barbara Melvin, stated that her organization remains hopeful that the ILA can achieve a solution to utilize the Leatherman Terminal fully. The SCSPA has warned that the port could become "bottlenecked" if ships cannot call the Leatherman Terminal, and the agency has requested an expedited briefing. SCSPA