$100B Trade Gap: China vs. US Data Exposed

A significant $100 billion gap has been identified between China's reported exports and the United States' recorded imports. Michael Kanko, CEO of ImportGenius.com, provides insight into the implications of this disparity for global supply chains. The company has utilized granular shipping records to uncover the discrepancy, which they believe stems from factors such as transshipment through third countries, errors in shipment value recording, and potential tariff optimization incentives.

Kanko emphasizes the importance of transparency in air cargo data for US manufacturers, as law enforcement and brand-protection teams are also leveraging this information to comply with international sanctions. The company has recently obtained access to shipment-level data from Mexico, which will provide visibility into transborder land crossings between Mexico and the US.

ImportGenius is actively pushing for legislative change, specifically the Manifest Modernization Act, which aims to establish public manifest data for air cargo shipments. Currently, nearly half of U.S. imports by value arrive by air, but there is no public data available for these shipments. The bipartisan bill has garnered support from relevant committees and could potentially be attached to the annual defense reauthorization bill.

Kanko highlights that U.S. manufacturers are increasingly using shipment-level trade data for sourcing and compliance purposes due to the shifting pricing dynamics away from Chinese suppliers.