Trade & Trends

Friday, May 24, 2013

   Total domestic rail activity ticked up 2.6 percent last week compared to the same week last year, reaching 535,835 carloads and intermodal units, according to the Association of American Railroads.    Carloads were up 1.9 percent, and intermodal activity saw a 3.5-percent increase.    Total domestic traffic of 10.32 million units so far in 2013 represents a 1-percent, year-over-year increase. On the year, carloads are down 1.7 percent, but intermodal units have grown 4.3 ...

Friday, May 24, 2013

   Truckload linehaul rates rose 2 percent in April, continuing a slow but steady price increase seen the beginning of the year, according to Cass Information Systems.    Intermodal only showed a slight bump of 0.3 percent in per-mile costs.    Linehaul rates started the year with a 2.4-percent rise, which grew to 3.3 percent in February. Rates were up 2.2 percent in March. While rates are going up, the climb isn’t as steep at the increases seen from February to April l...

Thursday, May 23, 2013

   Members of European Parliament are in favor of starting talks toward the Transatlantic Trade and Investment Partnership, a free-trade agreement between the European Union and the United States, but warn they must be kept apprised of the discussions.    In a resolution voted on Thursday, members also said any agreement must protect Europe’s cultural and audiovisual services market, and provide EU firms with access to U.S. public procurement markets. American restrictions on EU suppl...

Thursday, May 23, 2013

   Maritime industry officials in Hampton Roads are discussing how to take advantage of the large military presence in the area to attract people leaving for civilian life to become truck drivers and help the Port of Virginia move containers to and from the docks.    The Norfolk area is home to the world's largest naval base, which supports the U.S. Atlantic Fleet. The complex also includes a major naval air station. Oceana Naval Air Station is located nearby in Virginia Beach, and th...

Thursday, May 23, 2013

   Loaded inbound volumes at seven West Coast ports will see a 0.9-percent, year over year, decline during the second quarter of the year, ending the period at 2.8 million TEUs, according to Global Port Tracker.    In the third quarter, though, volume will increase by 2 percent to 2.99 million TEUs, followed by a 6.6-percent jump, year over year, in the fourth quarter. During the first three months of 2014, volumes are expected to rise by 7.2 percent to 2.75 million TEUs.   ...

Wednesday, May 22, 2013

   Third-party logistics providers will see 2013 revenues of $148.4 million, an increase of 4.6 percent, according to a recently released report by Armstrong & Associates.    Revenues of third-party logistics providers in the United States increased by 6 percent, year over year, in 2012 to $141.8 billion.    According to Armstrong & Associates, the compound annual growth rate for the 3PL industry fell by 0.3 percent from 1996 to 2012. The company expects this d...

Wednesday, May 22, 2013

   Based on data gathered by the American Trucking Associations' members, domestic tonnage fell in April after seeing a rise in March.    The ATA’s seasonally adjusted tonnage index ended last month, down 0.2 percent after being up 0.9 percent in March.    Compared to last April, the tonnage index rose 4.3 percent, the largest year-over-year gain since January’s 4.7 percent result. In the first four months of the year, truck tonnage is up 4 percent.     ...

Wednesday, May 22, 2013

   Acting Commerce Secretary Rebecca Blank last week wrapped up a seven-day trip to Latin America to help drum up business for U.S. companies engaged in infrastructure planning and construction with a speech at the American Chamber of Commerce Panama where she highlighted the importance of trade relations with the Central American nation.    Twenty companies specializing in project management, transportation, energy and water resource infrastructure accompanied Blank on her ...

Wednesday, May 22, 2013

   Canadian retail sales stayed flat in March at $39.5 billion, according to Statistics Canada.    Retail volume rose 0.7 percent over February when price-change effects were removed from the equation.    Clothing sales bumped up 3.1 percent, while motor vehicle and parts sales rose 0.7 percent, seeing an increase in activity for the third month in a row. Furniture and home furnishings were up 0.3 percent. Building material sales were basically flat compared to February...

Tuesday, May 21, 2013

   Officials at the U.S. Agency for International Development have launched an initiative with Tunisia to establish trade in the region and internationally, and encourage the local growth of small and midsized businesses.    The Office of the United States Trade Representative helped develop the initiative, which is part of the U.S-Tunisia Trade and Investment Framework. Work between the countries will be achieved through online platforms and partnerships, according to a news release....

Monday, May 20, 2013

  Air freight rates out of Asia are slowly inching back up to February’s yearly high of $3.32 per kilogram, ending April at $3.21 per kilogram, a rise of $0.06 over March’s figure, according to the Drewry East-West Air Freight Price Index .    The index measures the average per-kilogram price paid by forwarders to airlines on 21 major East-West routes. Each result factors in the base rate plus any security and fuel surcharges.    February’s high-water mark came in $0.32 per kilo...

Monday, May 20, 2013

   Drewry is predicting an increase in slow steaming by container carriers.    "Although slow steaming continues to be a contentious issue with shippers, more is on the way as fuel prices remain stubbornly high and ocean carriers can no longer absorb the bill due to the parlous nature of their finances," the London-based consultant says in the latest edition of its Container Insight Weekly .    "Drewry believes that ocean carriers are losing money at present due to the frei...

Monday, May 20, 2013

   "Blank sailings," which occur when liner companies decide to omit a scheduled voyage are "becoming a regular feature in particularly the Asia-Europe trade," said this week's edition of SeaIntel Sunday Spotlight .    "It has always been the norm that a significant amount of sailings are blanked following Chinese New Year. This is prudent capacity management by the carriers in response to the widespread factory closures during this time of the year. However, if we only look at the l...

Monday, May 20, 2013

   The state of Virginia will open an international trade office in Canada this year to further promote exports of agriculture and forestry products, which hit an all-time high last year, Virginia Secretary of Agriculture and Forestry Todd Haymore recently reiterated.     During remarks May 9 at the Virginia Maritime Association's annual banquet in Norfolk, Haymore noted that Gov. Bob McDonnell is the first governor in modern Virginia history to include agriculture and forestry i...

Monday, May 20, 2013

   China will assist its shipping companies to "escape recession" according to a report attributed to the Xinhua news agency .    Xinhua quoted He Jianzhong, China's vice minister of transportation, as saying the government would assist companies in several ways, including offering subsidies to encourage retirement of old ships to reduce supply and improve safety.    The government will also encourage carriers to sign long-term contracts and "strengthen interference into the...

Monday, May 20, 2013

   Port Logistics Group has added two new facilities spanning more than 1.1 million square feet to its retail distribution campus in City of Industry, Calif. The development now boasts more than 2.5 million square feet of space.    The first new building, a 350,000-square-foot facility, will house new and existing clients. A 775,000-square-foot development has also been built for three new clients.

Monday, May 20, 2013

   Port Corpus Christi says it has been a leading port for imports of wind energy turbine components since 2006, but last week handled components for export for the first time.    On Saturday, 35 Mitsubishi wind blades made in Ciudad Juarez in northern Mexico were loaded on a vessel carrier operated by NYK-Hinode.    The blades are destined for Japan.    “The Port anticipates additional wind cargo export opportunities within the upcoming months,” said John LaRue, ...

Friday, May 17, 2013

   A group of investors and stakeholders from more than 115 organizations have banded together under the Interfaith Center on Corporate Responsibility to ask global shippers to ensure the safety and welfare of their workers and to ferret out supply chain abuses.    The group has called on shippers around the world to implement International Labor Organization standards at all their facilities and to pay attention to the United Nation’s framework on human rights responsibilities in bus...

Friday, May 17, 2013

   The U.S. Export-Import Bank has authorized an approximately $500 million direct loan to finance the continued development of a Mongolian mine that, upon completion, will generate about 30 percent of the Mongolian GDP.    Additionally, Ex-Im Bank's financing will support about 2,000 U.S. jobs across the United States, according to bank estimates derived from Commerce and Labor department data.    The Oyu Tolgoi mine, which is located in the South Gobi region about 550 kil...

Thursday, May 16, 2013

   The White House on Wednesday welcomed growing exports for U.S. businesses, farmers, and ranchers on the first anniversary of the entry into force of the U.S.-Colombia trade agreement.    Via the U.S.-Colombia free trade agreement, U.S. manufacturers have substantially increased their exports to the South American country.    In specific, U.S. exports of transportation equipment, petroleum and coal products, processed food, and computer and electronic products have risen t...

Thursday, May 16, 2013

   Heavy ice cover on the Great Lakes that stretched well into April slowed resumption of the region's limestone trade, according to the Lake Carriers’ Association.    Shipments totaled only 1.8 million tons, a decrease of 28 percent compared to a year ago. Loadings are 21 percent off the month’s 5-year average.    Shipments from U.S. ports totaled 1.6 million tons, a decrease of 24 percent compared to a year ago, while loadings at Canadian quarries totaled 247,670 tons...

Thursday, May 16, 2013

   The U.S. Grains Council (USGC), along with the National Corn Growers Association (NCGA), MAIZAR, representing Argentinian producers and the maize supply chain, and ABRAMILHO (Brazilian Association of Corn Producers) signed a memorandum of understanding this week to form an alliance of North and South American corn producers to collaborate to address key issues concerning food security, biotechnology, stewardship, trade and producer image.    The organizations will operate under th...

Wednesday, May 15, 2013

   Undersecretary of Commerce for International Trade Francisco Sánchez will lead a civil nuclear trade policy mission to Vietnam and China, May 17-23.    Representatives from 18 companies, law firms, and industry associations will join U.S. government officials on the mission, which will make stops in Hanoi, Vietnam; and Beijing and Ningbo, China. Sánchez    “Vietnam and China are both steadily expanding their nuclear power programs, which presents abundant opportunities fo...

Tuesday, May 14, 2013

   After a 0.2-percent decrease in March, U.S. import prices continued to fall, declining by 0.5 percent in April, according to the U.S. Bureau of Labor Statistics.    Export pricing also continued to decrease, falling by 0.7 percent in April after a 0.5-percent decrease a month earlier.    While consumer good imports rose by 0.3-percent in April, price drops on other non-fuel imports pushed the overall result to a 0.2-percent decline. Over the past year, nonfuel imports ha...

Tuesday, May 14, 2013

   Preparations for upcoming negotiations between the United States and European Union on a transatlantic free trade and investment agreement were on the agenda Monday when U.K. Prime Minister David Cameron visited the White House.    The United States and European Union enjoy the world's largest economic relationship, accounting for a third of total goods and services trade, and half of world output. Trade supports 13 million jobs on both sides of the Atlantic. Each day an ...

Monday, May 13, 2013

   Three-fourths of global logistics companies are unable to get the prices they deserve for their services, according to the findings of the Global Pricing Study 2012 , conducted by strategy and marketing consultancy Simon-Kucher & Partners.    The causes, managers say, are a price-aggressive competitive environment and a prevalence of standardized products. The study incorporated responses from 151 people in the transportation and logistics sectors throughout Europe, Asia, North...

Friday, May 10, 2013

   The U.S. Department of Agriculture’s Animal and Plant Health Inspection Service has proposed to amend its rules to allow the import of fresh jackfruit, pineapple, and starfruit from Malaysia into the continental United States.    As a condition of entry, all three commodities would have to be irradiated for insect pests, inspected, and imported in commercial consignments. There would also be additional, commodity-specific requirements for other pests associated with jackfruit, pin...

Friday, May 10, 2013

   Undersecretary of Commerce for International Trade Francisco Sánchez arrived in Hong Kong Thursday with representatives from a group of U.S. companies to start off the Trade Winds Asia 2013.    According to the Commerce Department’s International Trade Administration, the annual trade mission and business matchmaking event helps firms gain market insights, make industry contacts, and solidify business strategies to expand U.S. exports to trading partners in the region. Sánchez &nbs...

Friday, May 10, 2013

   With large quantities of sugar currently on the domestic market, the U.S. Department of Agriculture will use its waiver authority under the Refined Sugar Re-Export Program to temporarily permit licensed refiners to transfer program sugar from their license to another licensed refiner through Sept. 30.    USDA will also temporarily increase the license limit for raw cane sugar refiners from 50,000 metric tons raw value of credits to 100,000 metric tons raw value of credits through ...

Thursday, May 09, 2013

   Steel exports increased in March over February by 6.1 percent based on government reporting reviewed by the American Institute for International Steel (AIIS).    “The stronger showing for steel exports in March was due primarily to increased shipments to our NAFTA partners, but notably, exports increased to all other smaller export markets as well, with the exception of the small markets in Africa,” explained David Phelps, AIIS president, in a statement.    “While the tr...

Wednesday, May 08, 2013

   Alphaliner is forecasting a record year for scrapping containerships.    In its latest newsletter, Alphaliner said vessels with a total capacity of 450,000 TEUs are expected to go to the breakers in 2013, surpassing a record of 381,000 TEUs in 2009.    "In the first four months of this year, 93 units for 195,000 TEUs have already been sold for demolition or de-celled (so they can be used for other purposes), with the average age of scrapped ships falling t...

Friday, May 03, 2013

   U.S. freight volume fell by 3.5 percent and freight expenditures dropped by 1.6 percent in April on a month-to-month basis, according to the Cass Freight Index Report .    Compared to April 2012, shipments were down by 1.3 percent, and expenditures declined by 0.5 percent. While both shipments and expenditures have fallen below the same-month levels from last year, shipment activity is even lower than in April 2011.     According to the report, the declines in activ...

Friday, May 03, 2013

   Uncertainty reigns supreme in the Ontario trucking market despite a recent uptick in volumes, according to the Ontario Trucking Association’s second-quarter business conditions survey.    According to carriers who filled out the April survey, freight volumes in lane segments covering traffic inside Ontario, between the provinces, and northbound from the United States all increased. The only lane that didn’t show a traffic increase was U.S. southbound. Northbound U.S. traffic ...

Thursday, May 02, 2013

   Domestic intermodal container volume ticked up 10.2-percent, year over year, during the first quarter, making it the sixth consecutive quarter of increases of more than 10 percent, according to the Intermodal Association of North America.    The total intermodal volume of 3.68 million units is also good for the second highest volume in domestic container history, the association reported in its Intermodal Market Trends & Statistics report.    Year over year, ISO cont...

Thursday, May 02, 2013

   The U.S. trade deficit fell by nearly $5 billion from February to March, ending the month at $38.8 billion, according to the Commerce Department.     Last month, the United States exported $184.3 billion in goods, but imported $223.1 billion in cargo.    Year over year, the trade deficit showed a $12.9-billion decrease. Exports fell by $0.4 billion and imports declined by $13.3 billion when compared to Mach 2012.    March’s total exports fell by $1.7 ...

Wednesday, May 01, 2013

   Iron ore exports are moving through Southern California's Port of Long Beach for the first time in 40 years.    The port said SA Recycling, a long-time exporter of scrap metal through the port, is working with CML Metals Corp. to send iron ore from mines in Utah, California, Arizona and Nevada to Asian steel makers. ( However, the U.S. Geological Service notes that in 2012, mines in Michigan and Minnesota shipped 97 percent of the usable ore produced in the Unit...

Wednesday, May 01, 2013

   The information service Alphaliner says spot freight rates from China to Europe have crashed.    "Spot freight rates from China to Europe are currently offered at $700-$800 per TEU, compared to $1,300-$1,400 per TEU at the beginning of the year," it noted in its weekly newsletter .    Alphaliner said 20 new ships of between 8,500 and 16,000 TEUs will be introduced into the Far East-North Europe trade in the second quarter, in addition to seven new units that were ad...

Wednesday, May 01, 2013

   U.S. trade officials are stepping up the pressure on members of the World Trade Organization to advance a “small package” outcome at the upcoming 9th Ministerial Meeting at Bali, Indonesia in December.    “At the most recent meeting of the WTO’s Trade Negotiating Committee on April 11, the United States asked that every delegation engage in immediate, intensive consultations with its capital to convey the seriousness of the situation in Geneva with regard to negotiations for a ‘sma...

Monday, April 29, 2013

   For the first 16 weeks of the year, total railroad traffic in the United States has grown by nearly 1 percent over 2012's figures, according to the Association of American Railroads.    The organization measured total carloads and intermodal units of 8.2 million on April 20, showing a 0.7-perecent bump over last year. Total volume, however, of 4.4 million carloads, represented a 2.3-percent, year over year, drop. Intermodal units were up by 4.6 percent.     In ...

Monday, April 29, 2013

   Two South Florida ports, Miami and Port Everglades, are prime examples of the dysfunctional approach in the United States for improving the waterborne transportation system.    Projects undergo a series of congressional approvals and feasibility studies that easily can take longer than a decade to complete before dredging even starts.    Cargo interests worry the Army Corps of Engineers' slow bureaucracy and the paucity of congressional appropriations for increasing ...

Monday, April 29, 2013

   China's air cargo volume rose to 487,000 tons in March, a 4-percent year-over-year increase on the way to a three-month finish of 1.3 million tons, according to the Civil Aviation Administration of China.    Year to date, Chinese air freight is 4.7-percent ahead of 2012’s activity.    The latest figures showed that new air cargo strongholds have emerged in the country. In March, domestic volume increased by 7.1 percent, but activity in Hong Kong, Macau and Taiwan sh...

Monday, April 29, 2013

   Cargo theft in North America stayed flat, year over year, in 2012 as European theft rates rose by 24 percent, according to FreightWatch International.    Cargo theft in Asia also increased.    According to the company, however, the greatest theft threats still exist in Brazil, Mexico and South Africa. Last year, about 6,800 thefts were reported in Sao Paulo, and more than 6,000 Mexican thefts occurred in 2012.    Pharmaceutical thefts are on the rise in Europe, ...

Friday, April 26, 2013

   U.S. Gross Domestic Product grew 2.5 percent in the first quarter, according to a preliminary estimate issued by the Department of Commerce Friday.    The increase was less than many analysts had expected after 0.4 percent growth in the fourth quarter.    The increased productivity was aided by personal consumption, private inventory investment, exports and construction spending. - Eric Kulisch

Thursday, April 25, 2013

   The Obama administration said it’s looking forward to stronger trade relations with Vietnam through the Trans-Pacific Partnership (TPP) trade agreement.    Acting U.S. Trade Representative Demetrios Marantis on Wednesday completed a three-day visit to Hanoi, where he discussed outstanding issues with Vietnamese President Truong Tan Sang, Deputy Prime Minister Vu Van Ninh, and ministers and vice-ministers at Vietnam’s ministries of Planning and Investment, Environment and Natural Re...

Thursday, April 25, 2013

   The Obama administration Wednesday notified Congress of its intent to include Japan in the Trans-Pacific Partnership (TPP) Agreement negotiations.    This notification follows an announcement on April 12 that the United States and Japan had completed bilateral TPP consultations, as well as an announcement by TPP countries on April 21 that they welcome Japan as a participant in the TPP negotiations, pending the successful completion of domestic procedures by each TPP country.  ...

Thursday, April 25, 2013

   The U.S. Commerce Department has selected 20 companies to join its deputy secretary, Rebecca Blank, on an infrastructure business development trade mission to Sao Paulo, Brazil; Bogota, Colombia; and Panama City, Panama, from May 12-18.    “The governments of these countries have each outlined ambitious infrastructure development plans for the years ahead, and this trade mission will help U.S. companies in a broad range of infrastructure industry sectors make the connections they ...

Wednesday, April 24, 2013

   Steel imports fell again in March by 1.3 percent compared to February, based on preliminary U.S. government reporting analyzed by the American Institute for International Steel (AIIS).    “After months of declines in arrivals in response to weak economic conditions and steel demand, the only good news in the latest report is that the decline is noticeably smaller, and imports from our NAFTA partners showed an increased, hopefully portending better news going forward. The long-awai...

Wednesday, April 24, 2013

   Representatives from U.S. Customs and Border Protection and the Federal Republic of Nigeria have signed a Customs Mutual Assistance Agreement (CMAA), which allows for better cooperation between the two nations when investigating and preventing customs offenses.    In addition to helping stop smuggling and prevent customs fraud, the agreement will help both parties accurately assess customs duties. U.S. Customs authorities, according to officials, will also be able to increase borde...

Tuesday, April 23, 2013

   Asia-Pacific e-commerce growth could be limited by the region’s logistics capabilities, according to a new report by Transport Intelligence.    The report, Asia Pacific e-commerce Logistics 2013 , points out that the region is the world’s fastest growing e-commerce market and has the potential to become the largest market for e-commerce sales in the next few years, with 33 percent expansion in the e-commerce logistics market in 2012.    “This is a region that has long be...

Tuesday, April 23, 2013

   The International Monetary Fund last week lowered its estimate for world economic growth for 2013 to 3.25 percent from 3.45 percent in January, but did not change its growth projection of 4 percent for next year.    The IMF said its World Economic Outlook that advanced economies are expected to gradually accelerate in the second half of the year on the heels of emerging markets. Private demand in the United States is strong, but it is weak in the euro zone.    "Glob...

Tuesday, April 23, 2013

   Over the course of 2013, American Shipper will bring you a view of six containerized import regions in the United States based on data supplied by the trade intelligence firm Zepol Corp.    The regions to be profiled bimonthly are the Pacific Southwest, Bay Area, Pacific Northwest, Gulf Coast, South Atlantic, and North Atlantic. The reports will include a picture of those regions biggest imports by liner carriers, non-vessel-operating common carriers (NVOs), origin country, and pro...

Tuesday, April 23, 2013

   The U.S. State Department recently issued a presidential permit to the state of Michigan to build a new bridge connecting Detroit and Windsor, Ontario.    The State Department approves new international border crossings after reviewing whether they are in the national interest.     Local and national officials in Canada and the United States for many years have been developing plans for a second bridge to relieve congestion on the privately-held Ambassador Bridg...

Monday, April 22, 2013

   Drewry said ocean carriers are planning to add 12 percent more vessel capacity to the Asia-East Coast North America (ECNA) trade by May despite lack of cargo growth.     "It seems like suicide, but new cargo sources may be envisaged,” the Londobn-based consultancy said.    Drewry estimated that in March carriers operating between Asia and ECNA were operating at only 67 percent utilization eastbound, and 56 percent westbound.    In the latest...

Monday, April 22, 2013

   Air freight rates out of Asia continue to be somewhat volatile, dropping from $3.32 per kilo in February to $3.15 per kilo last month, according to the latest Drewry East-West Air Freight Price Index.    The March decline in rates comes after two months of steady increases. September was the last time the freight rate average hit $3.15, but if last summer is any indication of rates in 2013, pricing will continue to fall. In June and July of last year, rates came in at $3.12 per kil...

Monday, April 22, 2013

   The U.K. ambassador to the United States said last week his nation is hopeful for a quick commencement and conclusion of trade negotiations between the United States and European Union.    The so-called Transatlantic Trade and Investment Partnerships (TTIP) would bring free trade benefits to the two biggest trading blocs in the world. President Obama announced an intent to pursue the pact during his State of the Union address earlier this year.    “We were delighted that ...

Thursday, April 18, 2013

   U.S. steel exports declined 3.8 percent in February 2013 compared to January, according to government data analyzed by the American Institute for International Steel (AIIS).    “Weakness in NAFTA markets showed up powerfully in the February data, with the decline to our NAFTA partners more than the total decline for the month. Increases in exports to the much smaller markets in the rest of the Western Hemisphere, along with a slight improvement in exports to Europe and Africa offs...

Monday, April 15, 2013

   The United States and Japan on Friday announced they had reached agreement on Japan's participation in negotiations for a Trans-Pacific Partnership trade agreement.     Japan last month signaled its willingness to join the TPP and would become the 12th nation in the talks once approved by the current partners. As the world's third largest economy, it's participation would make a Pacific Rim trade bloc extremely powerful, accounting for nearly 40 percent of global GDP...

Monday, April 15, 2013

   Asia-Pacific Economic Cooperation (APEC) member economies are on track to meet their target of a 10 percent improvement in the region’s supply chain performance by 2015, in terms of time, cost and uncertainty, according to an internal assessment released Sunday.    APEC trade experts met last week in Indonesia to strengthen supply chain performance among the member economies ahead of higher level meetings between APEC trade ministers and senior officials meetings this week.  ...

Monday, April 15, 2013

   A trade agreement between the United States and European Union will be a “shot in the arm” for exporters in the Europe, wrote EU Minister Richard Bruton in an editorial for Dublin’s The Daily Business Post .    The Irish politician, who oversees jobs, enterprise and innovation, will chair an informal meeting of EU trade ministers in Dublin on Thursday.    The $3.06 billion each day that's traded between the European Union and United States currently accounts for...

Friday, April 12, 2013

   U.S. import volume in March fell 12.5 percent year-on-year, largely due to the Chinese New Year falling later this year than in 2011, according to the trade intelligence firm Zepol Corp.    Zepol said March volume hasn’t been as low since 2009, but that first quarter volume was still marginally higher – 0.1 percent – than in the corresponding period in 2011.    “Inbound TEUs from China dropped by nearly 36 percent from February, due to many Chinese factories shutting dow...