Dynamo Dispatch (2025/05/12)

Dynamo Dispatch (2025/05/12)Issue 331 | Orca AI, Wonder, Quantum Systems
͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     ͏     
Forwarded this email? Subscribe here for more
Dynamo Dispatch (2025/05/12)
Issue 331 | Orca AI, Wonder, Quantum Systems
Madelyn O'Farrell and Derrek Li
May 12

READ IN APP

💥 Have you seen any interesting startups recently? Introduce us.
🗞️ If you were forwarded this and found it interesting, please sign up.
🎙 Check out Dynamo's podcast series, The Future of Supply Chain.
🤝 Interested in meeting with Dynamo? Schedule here with Derrek and Madelyn.
Weekly Commentary 💭
With global trade volatility top of mind, we're partnering with our portfolio company Vizion to share their weekly insights on global container volumes and shipping trends. This week, US imports from China and exports to China both saw week-over-week increases in bookings, though they remain down 61.5% and 78% year-over-year, respectively. The recently announced 90-day pause on the highest tariffs—lowering US rates from 145% to 30%, and China's from 125% to 10%—could give importers/exporters much-needed relief to move goods out of limbo. It’s worth noting this pause comes right as retailers will need to meet the summer ordering deadline to have goods ready for the holiday season.
For our long-time readers, you’ll notice the format of this week’s newsletter is a bit different. Rather than splitting into supply chain & mobility sections, we’ll be delivering the top news across the industrial economy, focusing on the industries that make, move, and monetize the world’s goods. For more, check out our newly re-designed website. Feedback is always welcome!
🥰 Love reading the Dispatch? Make sure you forward it to anyone looking to stay up to date with all things in the industrial economy.
We Are Dynamo,
Madelyn, Derrek, and the rest of the Dynamo team
Note: please add “dynamo@substack.com” to your email client, so you don’t miss future issues due to aggressive spam filters.
Make, Move & Monetize 📦
⭐ US and China Reach a Deal to Slash Sky-High Tariffs for Now, with a 90-Day Pause. The US and China agreed to significantly lower their steep tariffs, reducing US tariffs from 145% to 30% and China's from 125% to 10%, restarting stalled trade and sparking a rally in global markets. However, the 90-day truce does not address the core issues in their trade relationship, and tariffs remain much higher than pre-escalation levels, leaving businesses to navigate ongoing uncertainty. While both sides framed the agreement as progress, analysts warn the truce is fragile, and US consumers and global trade may still face lasting disruptions. For more. What's in China-US trade deal? Tariff Cuts and Key Details.
Maersk Warns Global Container Volumes Could Drop Due to Trade War. Maersk reported a steep 30–40% drop in container volumes between the US and China in April due to escalating trade tensions, warning that a prolonged trade war could drag down global shipping demand. Despite the disruption, the company maintained its full-year profit outlook, buoyed by elevated freight rates stemming from Red Sea route instability. Maersk revised its 2024 global container volume forecast from 4% growth to a range between -1% and +4%, citing widespread economic downgrades and demand shocks caused by US tariffs. While a 90-day tariff pause may offer a short-term inventory boost, CEO Vincent Clerc cautioned that unresolved trade tensions and labor shortages could weigh heavily on US economic prospects. Related, Tariffs Amplify US Warehousing Demand, Disrupt Inland Truck Routes and Red Sea Ceasefire Deal Sparks Concerns Over Potential Freight Rate Collapse.
Datacenter Growth Poses Manufacturing Hurdle, Project Carrier Opportunity. Datacenter construction in the US is accelerating to meet surging demand from AI and cloud storage. Despite this growth, infrastructure and manufacturing bottlenecks—especially shortages of transformers and diesel generators—are slowing project timelines, and recent tariffs on Chinese components are further complicating procurement. Much of the expansion is moving into rural areas with limited utility infrastructure, forcing datacenter developers to adapt site selection based on power availability rather than proximity to traditional hubs. While these challenges present risks, they also open opportunities for breakbulk and project cargo logistics, as oversized equipment and energy infrastructure become critical to scaling the industry. Completely unrelated, Cargo Thieves are Attacking the US Supply Chain at Alarming Rates.
The Bubble Blasters and Other Chinese Goods That Are Paralyzed by Trade Chaos. President Trump’s steep tariffs—now at 145% on Chinese goods—have thrown global supply chains into disarray, stranding holiday merchandise, halting factory lines in China, and causing US importers to cancel billions in orders. US companies are scrambling to find alternative suppliers, often unsuccessfully due to China's specialized manufacturing ecosystems. Retailers and importers, from toy companies to industrial equipment suppliers, are grappling with inventory gluts, rising costs, and the inability to shift production quickly or affordably outside China. Related, Facing Tariffs and Uncertainty, Canadian Firms Look Past US Markets.
Cyberattacks Surge Against US Logistics Infrastructure. Between October 2024 and March 2025, the US experienced a 136% increase in advanced persistent threats targeting transportation and logistics sectors. Notably, 55% of these attacks were attributed to APT29, a Russian-linked cyber espionage group. These sophisticated attacks compromise freight visibility, warehouse systems, and scheduling platforms, posing significant risks to supply chain operations. This trend underscores the vulnerability of critical infrastructure to cyber threats, emphasizing the need for more robust cybersecurity measures. Related, The Cybersecurity and Infrastructure Security Agency (CISA) has Issued Advisories Addressing Vulnerabilities in Industrial Control Systems.
US to Overhaul Curbs on AI Chip Exports After Industry Backlash. The Trump administration plans to scrap Biden-era AI chip export caps, offering relief to firms like Nvidia that warned the rules would stifle global sales and US innovation. The overhaul would ease restrictions on friendly nations such as India and Israel, while preserving tougher controls on adversaries like China. Industry leaders welcomed the move, but uncertainty remains as new rules are drafted and chip-trade becomes a bargaining chip in broader foreign policy talks. With billions at stake and geopolitical tensions high, the balance between national security and tech competitiveness is entering a new phase. Related, US Politician Proposes Tracking Export AI Chips.
HD Hyundai Mipo Advances Shipyard Automation. HD Hyundai Mipo and ABS announced a joint development project to integrate digital automation technologies into shipbuilding processes. The initiative focuses on leveraging artificial intelligence, communication systems, and robotics, to enhance shipyard operations. This collaboration signifies continued momentum towards modernizing shipbuilding, aiming to improve efficiency, safety, and operational excellence in the maritime industry.
UK–US Trade Deal Reduces Tariffs on Cars and Steel. The UK and the US finalized a trade agreement that slashes tariffs on UK exports of cars from 25% to 10%, while also granting the U.S. greater access to UK agricultural markets. The deal follows months of negotiation in the wake of the Liberation Day tariffs and is seen as a strategic alignment amid growing trade tensions with China. UK industrial players, particularly in the automotive and metals sectors, are expected to benefit immediately from the eased trade restrictions. Related, Bank of England Cuts Interest Rates rates to 4.25% Amid Trade War Concerns.
Trump Announces US, Houthis Ceasefire, Houthis to 'Evaluate' Proposal. President Trump unexpectedly announced a halt to US airstrikes on Yemen’s Houthi rebels, citing their promise to stop targeting American ships in the Red Sea. The decision follows weeks of costly conflict and reflects mounting pressure over national security missteps. While Oman confirmed a ceasefire deal, Houthi leadership signaled only a tentative pause, leaving the situation fluid. The move aims to de-escalate tensions in the Red Sea, but skepticism remains as US allies and military leaders await signs of real compliance. Meanwhile, Seafarers Stranded Off Yemen Port Eye Exit After US-Houthi Ceasefire Deal.
Trump Administration Unveils Plan to Modernize the Air Traffic Control System. Transportation Secretary Sean Duffy unveiled an ambitious plan to fully modernize the US air traffic control system within four years, following high-profile incidents and outages like the chaos at Newark Airport. Backed by President Trump, the multibillion-dollar overhaul would replace decades-old technology including copper wiring and floppy disks with radar upgrades, new control towers, and fiber-optic systems. Industry leaders praised the proposal, though experts warned that similar promises have faltered for decades and that key risks, like pilot error, remain unaddressed. With bipartisan support possible but not guaranteed, success hinges on fast Congressional funding and execution. An ongoing problem, Radar Screens Went Black For Air Traffic Controllers At Newark Airport Again.
The Future of Supply Chain 🎙️
Check out our podcast series that’s been running since 2018. On each episode of the Future of Supply Chain, we sit down with a different entrepreneur, investor, or industry veteran to discuss innovation, technology, and the most exciting opportunities in supply chain as we build the future of the industry together.
Fundraises and M&A 💸
Pulse Charter Connect Raises $2M Seed. Pulse Charter Connect is building a tech-enabled logistics platform to coordinate time-sensitive organ transplant transportation. The round was co-led by Ivy Ventures and Simplex Ventures, with participation from Cedars Sinai Health Ventures, Belal Badat Ventures, Techstars, The Josephine Collective and strategic angel investors.
3D Spark Raises €2M Seed