Subscribe to our free, weekly email newsletter!



Rare earths market must be kept open

By Patrick Burnson, Executive Editor
September 22, 2011

Concern that the United States will fail to maintain an adequate supply of the minerals needed to manufacture our most advanced products is gaining traction in Washington.

Congressman Don Manzullo (R-IL), Chairman of the House Foreign Affairs Subcommittee on Asia & the Pacific, held a hearing to highlight the fact that China controls 97 percent of the rare earths market and has been limiting exports and skyrocketing costs of the minerals to the detriment of manufacturers in the U.S. and other countries.

As logistics management sources have been noting, rare earths are vital in a variety of advanced manufactured goods, such as cell phones, fluorescent lights, hybrid engines, airplanes, wind turbines, and defense guidance systems. 

China’s actions to temporarily ban exports of rare earths a year ago following a territorial dispute with Japan caused huge price spikes for certain rare earths, particularly cerium, neodymium, and dysprosium.  Currently, the prices for these elements are at astronomical levels. As a result, U.S. manufacturers can no longer expect a steady supply of these elements, and the pricing uncertainty threatens tens of thousands of American jobs. 

According to Manzullo, the U.S. Department of Energy is conducting cutting edge research into rare earth alternatives, but a more comprehensive effort is needed.

“Congress, the Administration, and our manufacturers need to come together to formulate a comprehensive strategy to end China’s monopoly on rare earths, from challenging China’s trade actions to encouraging more American production of rare earths. We must end our reliance on China for the building blocks of advanced U.S. manufacturing. American jobs and our national security depend on it.”

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

FTR says both spot rates and contract rates are heading up in a full capacity environment and with the fall shipping season rapidly approaching, it explained conditions for shippers could further deteriorate.

Read how others are using Business Process Management to achieve ERP success with Microsoft Dynamics AX. Download the free white paper now.

Now that Congress has issued another highway funding Band-Aid – a $10.9 billion highway bill through next May that former Transportation Secretary Ray LaHood blasted as “totally inadequate” – what can we expect as the infamously do-nothing 113th Congress winds down in the next month before taking yet another recess to prep for the mid-term elections?

Seasonally-adjusted (SA) for-hire truck tonnage in July headed up 1.3 percent on the heels of a 0.8 percent increase in June. The ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment, was 133.3 in July, which outpaced June’s 132.3 by 0.8 percent, and was up 2.8 percent annually.

Volumes for the month of July at the Port of Long Beach (POLB) and the Port of Los Angeles (POLA) were mixed, according to data recently issued by the ports. Unlike May and June, which saw higher than usual seasonal volumes, due to the West Coast port labor situation, July was down as retailers had completed filling inventories for back-to-school shopping.

Article Topics

Blogs · Global Logistics · Global · Trade · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA