Freight forwarder K+N has launched a dedicated Shanghai-to-Chattanooga (U.S.) less-than-container-load service for the automotive industry. The company says the service should offer a 20 day direct routing, improving inventory management for customers on the route. Panjiva data shows seaborne shipments arriving at Chattanooga have expanded by 15.1% in the past 12 months to January 31 on a year earlier. That’s a marked acceleration from 2.2% annually over the past three years.

Chart shows seaborne imports with Chattanooga as destination. Source: Panjiva

The major consignees in the region are led by the automotive industry including Nissan and Volkswagen so K+N’s choice of industry is unsurprising. Yet, that reliance may prove to be a drawback. As outlined in Panjiva research of January 30 the automotive industry faces significant supply chain upheaval risks from NAFTA negotiation. Specifically, rules-of-origin changes may make overseas parts manufacturing less economic, potentially cutting demand for freight services.

Chart segments seaborne imports with Chattanooga as destination by consignee. Source: Panjiva

So far, taking both LCL and full container load traffic, services have been led by Maersk and Hapag-Lloyd. It is the latter’s shipments from Japan that have been the leading lane, followed by Maersk from Germany and the Netherlands.

Chart shows seaborne imports with Chattanooga as destination. Source: Panjiva