Is De Minimis Exploitation? Uncovering Logistics Trends with Cathy Roberson

Freight Nation: A Trucking Podcast

In this episode of Freight Nation: A Trucking Podcast, host Brent Hutto is joined by Cathy Roberson, Founder and President of Logistics Trends & Insights LLC.

Join them as they explore:

• How to engage with data in blogs, newsletters, and podcasts
• The de minimis rule and how it is being addressed in legislation
• Technology’s impact on the logistics industry
• And more!

A leading expert in supply chain management and logistics analysis, Cathay is the Founder and President of Logistics Trends and Insights LLC, a global logistics market research company. She is also a research analyst for the Journal of Commerce and releases a weekly newsletter titled Freight Forward.
[09:50 - 15:34] Having always had a passion for research, Cathy has one piece of advice for when you are reading blog articles or listening to podcasts: don’t take any data at face value. Numbers can be argued in so many different ways, so it’s important to fully appreciate the full story behind the data. Where do the numbers come from? How is the index derived? These are questions you need to answer before you accept the conclusion that is drawn. Dig out the source and find the full story.

[21:34 - 26:24] Over the past few years, supply chain markets have returned to their pre-pandemic levels, with retailers who faced financial challenges before facing them again. Common issues include excessive stores, inappropriate inventory, and high supply chain costs. One of the most interesting trends to Cathy has been the de minimis rule, which allows for the importation of goods valued at $800 or less per shipment without duties or taxes. This is often utilized by Chinese e-commerce providers like Shein who consolidate their shipments to avoid duties and taxes. Some people see this as smart business, while others see it as exploitation. In the US, several bills are being considered to address this as it is perceived to be unfair given that China does not have such a lenient rule for imports.

[35:00 - 39:37] In her research, Cathy has observed a significant increase in the adoption of technology in logistics. More companies are using dynamic pricing, similar to the models used in passenger air travel and ride-sharing services. Similarly, modern platforms are coming in that allow shippers to choose the best mode of transport based on cost and time requirements. There is also an increase in the use of AI, with its ability to enhance decision-making and efficiency, which can also be used for analysis in combination with dynamic pricing models and transportation platforms. No matter what, technology should be seen as a tool to assist humans, not replace them.

If you enjoyed this episode, make sure to subscribe, rate, and review on Apple Podcasts, Spotify, and Google Podcasts, instructions on how to do this are here.

Freight Nation: A Trucking Podcast is handcrafted by our friends over at: fame.so