b'4American Journal of Transportation ajot.comUnited States to Europe by HS (2)TEUsHS (2 digit level) Q1 2020 Q1 201939 - PLASTICS AND ARTICLES THEREOF 90,018 78,42087 - VEHICLES, EXCEPT RAILWAY OR TRAMWAY, AND PARTS ETC 86,148 74,85647 - WOOD PULP ETC; RECOVD (WASTE & SCRAP) PPR & PPRBD 38,961 38,04484 - NUCLEAR REACTORS, BOILERS, MACHINERY ETC.; PARTS 33,391 34,72848 - PAPER & PAPERBOARD & ARTICLES (INC PAPR PULP ARTL) 28,384 26,90108 - EDIBLE FRUIT AND NUTS; PEEL OF CITRUS FRUIT OR MELONS 15,475 18,24052 - COTTON, INCLUDING YARNS AND WOVEN FABRICS THEREOF 15,081 8,09029 - ORGANIC CHEMICALS 14,712 14,50440 - RUBBER AND ARTICLES THEREOF 11,867 11,73544 - WOOD AND ARTICLES OF WOOD; WOOD CHARCOAL 11,397 13,747OTHERS 218,284 230,102Total 563,719 549,368Source: Descartes-DatamyneUnited States to Europe by HS (2)TEUsHS (2 digit level) Jan-May 2020 Jan-May 201939 - PLASTICS AND ARTICLES THEREOF 145,378 136,96287 - VEHICLES, EXCEPT RAILWAY OR TRAMWAY, AND PARTS ETC 119,164 133,64947 - WOOD PULP ETC; RECOVD (WASTE & SCRAP) PPR & PPRBD 62,523 60,45184 - NUCLEAR REACTORS, BOILERS, MACHINERY ETC.; PARTS 48,388 56,53848 - PAPER & PAPERBOARD & ARTICLES (INC PAPR PULP ARTL) 43,793 44,85929 - ORGANIC CHEMICALS 24,465 24,81608 - EDIBLE FRUIT AND NUTS; PEEL OF CITRUS FRUIT OR MELONS 23,277 26,50052 - COTTON, INCLUDING YARNS AND WOVEN FABRICS THEREOF 20,610 17,98840 - RUBBER AND ARTICLES THEREOF 17,945 20,64938 - MISCELLANEOUS CHEMICAL PRODUCTS 17,911 18,638OTHERS 343,248 391,652(LOSTcontinued fromlike a disaster in the makingquicker the auto industry canTotal 866,703 932,701Source: Descartes-Datamynepage 3) withMexicoscarproduc- comeback,thequickerthe regime began for North Amer- tionoff29.3%year-on-yearentire U.S. economy can come icasautomakers.Robertto 238,946 units in June 2020,back.SenatorPeterscouldUnited States to Europe by US PortLighthizer,theU.S.Tradefollowing a 93.7% decline injust have easily amended hisTEUsRepresentative,outlinedtheMay. Its expected that Mex- comments on the auto indus- US PORT Q1 2020 Q1 2019change for auto manufactur- icosautoplantswillfollowtry from the U.S. economyHOUSTON,TX 108,606 86,572ing under the new agreement,the lead of Detroit and try toto the global economy. SAVANNAH,GA 95,276 95,201NORFOLK,VA 71,097 69,447Thishistory-makingagree- rampupbutadeteriorationButwhenwillrecoveryCHARLESTON,SC 66,008 60,925mentincreasescountryofoftheCovid-19situationinhappenfortheautoindus- NEW YORK, NY 53,392 51,623origin requirements for autoMexico could result in lowertry? Thats the multi-billion- NEW YORK/NEWARK AREA, NEWARK, NEW JERSEY 49,940 50,189NEW ORLEANS,LA 23,127 22,600manufacturingfrom62.5%production from the plants. dollarquestionbeingaskedLONG BEACH,CA 22,744 13,965under NAFTA to 75%. ThisEvenshouldrecoveryin the boardrooms and cornerOAKLAND,CA 20,110 25,378BALTIMORE,MD 9,599 7,912means at least three-quartersbegininthesecondhalfofofficesofeveryautomaker.OTHERS 43,820 65,555ofautosandtrucksqualify- 2020,therearemanyques- WithoutknowingthefullTotal 563,719 549,368ing for tariff benefits will betionsoverthelong-termscopeofthepandemic,itsSource: Descartes-Datamynemade in North America. MoreimpactofUSMCAprovi- impossibletosaywhenthe of those cars and trucks soldsions. For example, with theindustrywillreturntofullUnited States to Europe by US Portin North America will also be$16.00perhourwage(andproductionandwhattheTEUsbuiltbyworkersearningatothersourcingprovisions)shapeofdemandwilllookUS PORT Jan-May 2020 Jan-May 2019least $16 per hour, reducingwillsomemanufacturinglike.NonethelessthereareHOUSTON,TX 165,866 157,404the wage disparity that led tomovefromMexicobacktosome early indicators.SAVANNAH,GA 148,011 154,652the outsourcing of U.S. man- the U.S.? Maybe and maybeHyundaiMotorGroupNORFOLK,VA 110,722 117,427CHARLESTON,SC 99,627 105,417ufacturing jobs. These provi- not.Forexample,Toyota,is forecasting that the globalNEW YORK, NY 82,493 94,829sions are a main reason whywhich built a factory in 2015vehicle market wont return toNEW YORK/NEWARK AREA, NEWARK, NEW JERSEY 74,517 80,122NEW ORLEANS,LA 35,893 38,803theUSMCAisexpectedtoinMexicotoproducethethe same levels as 2019 untilOAKLAND,CA 32,019 38,652create 76,000 new jobs in theTacoma pickup trucks, could2023. According to HyundaisLONG BEACH,CA 32,404 25,343U.S. automotive sector aloneriskincurringa25%tariffestimates(whicharemea- LOS ANGELES,CA 3,984 21,801OTHERS 81,168 98,253over the next five years. ifitdoesntmeetthe40%suredslightlydifferentthanTotal 866,703 932,701USMCAssourcingprovi- those in most U.S.-based dataSource: Descartes-Datamynesion.Stillthecostofrelo- bases) global commercial and catingthebusinesslikelypassengervehiclesaleswillUnited States from European Countries by TEUoutweighs the risk of stayingdrop by more than 20 million inMexicoandmakingtheunits in 2020 from the 2019COUNTRY OF ORIGIN TEUs Q1 2019investment pay off. However,tallyofjustover91millionGERMANY Q1 2020 200,802the same logic may not applyunits.HyundaialsoexpectsITALY 183,516 141,991136,157toGM-thelargestforeigntheglobaleconomytoonlyBELGIUM 68,477 65,710automaker in Mexico - whoslowly emerge from the pan- NETHERLANDS 67,757 63,490TURKEY 65,069 58,310might be willing to shift somedemicratherthanthesharpSPAIN 61,484 61,384productionfromMexicotoreturn in some forecasts.FRANCE 55,268 64,669UNITED KINGDOM 46,774 49,381the U.S. (or Canada) if condi- AndwhatwillbetheAUSTRIA 25,929 18,144tions warranted the switch.sparkthatignitesthecome- POLAND 23,546 25,095back? Many think the spark isOTHERS 142,309 135,718W henW illr eCovery going to come from the elec- Total 876,288 884,694h APPenAndW hy ? tric vehicle sector and point GaryPeters,Senatorout that only Teslas produc- (AWARDEDcontinuedtion partner for over 10 years.u.s. Trade RepresentativefromMichigan,notedinationincreasedin2020overfrom page 2)AGCO and our suppliers Robert lighthizer CNBCs Squawk Box inter- 2019 in the year-to-date autofor high-performing suppliers.have built a world-class supply Butforalltheprom- view, The auto industry is suchsales comparisons. Certainly,Innovativetechnologypro- chainthathasproventobe ise USMCA has for the autoajobsmultiplier.Itssuchathereisconsiderableinvest- vided for live and interactiverobust and responsive in very sector,therearesomemajorpowerful force in manufactur- ment being made not only inbreakoutsessionsthatwerechallengingenvironments, obstaclestobeovercomeing and the U.S. economy, theelectric autos but in trucks asfilledwithinsightfulinfor- said Michael Clem, vice presi-for the agreement to work well. Tesla has its Cybertruckmation and opportunities fordent, purchasing and logistics, beginning with Mexicos autoand recently GM announceddirect Q&A. Americas. These awards cel-industry. The Mexican econ- itwasgoingtoreleaseanPhilipW.Byrne,Vice- ebrate suppliers who have pro-omyhasbeenindirestraitselectrictrucknextyearandPresidentofSales,Northvidedexceptionalservicesin for nearly two years and thehas twenty more EVs plannedAmerica for ACL virtually par- areas such as corporate sustain-1pandemichasdevastatedthefor entry by 2023.ticipated in the event and said,ability,innovativesolutions, autosectorwhichnormallyWhileitisdifficulttoWearehonoredtoearnthequalityproducts,andeffec-accountsforaround3.6%make projections at this junc- trust of AGCO with this pres- tive collaboration. AGCO, our of the GDP. In 2019 Mexicoture, the pandemic has accel- tigiousaward.Beingrecog- dealers, and the worlds grow-builtaround3.75millioneratedchangeandtheautonized as one of 13 top vendorsersarewell-servedbythese vehicles, a decline of over 4%industry looks poised to be ais a true honor. We are proud torelationships and the outstand-from2018.But2020lookssenator gary Peters part of that new look. serve AGCOasatransporta- ing capabilities they deliver.'