Craig Fuller, FreightWaves, joins 'Fast Money' to talk the downturn in shipping and freight into the U.S.

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FreightWaves CEO Craig Fuller has expressed concerns over a significant downturn in shipping and freight to the United States. According to Fuller, companies have been canceling orders due to unexpectedly high tariffs, some reaching up to 145 percent on Chinese imports. This drastic rise in tariffs has rendered many import ventures uneconomical, leading to a noticeable 35 percent year-over-year drop in imports anticipated over the upcoming weeks. 

Fuller predicts that this sharp decline in import activity will soon impact the domestic economy. The trucking industry might face a six percent reduction in volume due to the decrease in imports. This reduction is expected to ripple through various sectors, notably affecting ports and overall logistics operations, which employ a significant number of people in the U.S.

The impact of the slowdown might extend beyond logistics. Fuller anticipates mass layoffs within the industry, potentially affecting the half-a-million logistics workers in Southern California and nine million across the country. The ripple effect will likely spread to retailers as well, who are reportedly reducing their inventory intake in response to canceled orders. Fuller suggests that consumers might notice stock shortages during the back-to-school shopping season.



U.S. import slowdown: 'It's about to get much, much worse'

FreightWave CEO Craig Fuller joins us now. Craig, great to see you. We've heard of the reports of just people not ordering anymore, companies not ordering anymore, cargo ships being stranded. How bad is it right now? Well, it's about to get much, much worse. So, certainly, it's true that companies have canceled orders. A lot of these orders they had in place up to a year. And so they were expecting — certainly expecting some level of tariffs, but not what we're seeing right now. So most people expected we would see up to about 20 percent tariffs on China. Now we're looking at something that's completely different. In fact, the margins just don't make sense for them to import because they're looking at a potential 145 percent tariff. So there's been a lot of cancelization of voyages to the United States. And the amount of freight that we're expecting over the next two weeks to drop off in a year-over-year basis is down 35 percent in terms of imports. And this is going to show up in the domestic economy pretty soon. We're about anywhere from two to four weeks out of seeing the trucking industry lose an enormous amount of its volume, probably around 6 percent of total trucking volume around the United States is actually going to drop off, simply because we don't have the import activity happening. And then, of course, there's the ports. And then if you — I mean, you're Freightwave, so you're focused on sort of the cargo aspect of it. But then, of course, the ripple effect is into the stores, into the businesses, where there will be layoffs as well. Yeah, there's half-a-million people that work in logistics in Southern California alone. There's nine million people that work across the country in logistics. And all of these jobs are going to be impacted in some way by the slowdown in import activity. And so we're expecting there to be mass layoffs in the logistics industry. And also, as Apollo reported, this is going to show up and impact retailers. Retailers are simply not taking inventory of products that they have preordered, and they're certainly not ordering new products. And we will see inventory stock out sometime in late summer, probably as early as late June, but certainly in July and August. And I think most consumers will notice it when they go back — when they go to purchase their back-to-school items. For more UN videos visit www.un.org

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