A Quick Glance Into The Logistics Market - February 2014
Georgia Logistics complies a monthly set of facts and figures regarding the Logistics Markets. We selected a few facts to share with you :-
- Georgia merchandise exports set a record in 2013, totaling $37.6 billion, a 4.2% increase over 2012. The state’s strong performance helped the United States hit an all-time record for exports of U.S. goods and services, reaching $2.3 trillion in 2013 and supporting nearly 10 million American jobs.
- Retail sales in 2014 are expected to increase 4.1%, up from the preliminary 3.7% growth seen in 2013. Online sales in 2014 are forecast to grow between 9% and 12%.
- The U.S. recovery’s continued momentum in 2013 helped to increase demand for industrial real estate. In total, the industrial sector absorbed +121.3 million square feet in 2013, the strongest reading since 1998. Ecommerce-related demand was estimated to account for nearly 40% of all net absorption in 2013. At the end of 2013, there was 71.1 million square feet of new industrial space under construction, up 85% compared to a year ago.
- Less-than-truckload carrier Saia reported a net profit of $8.1 million in the fourth quarter, a 49% increaseover the same quarter in 2012. For the full year, Saia’s net profit increased 43%, totaling $43.6 million.
- Truckload line-haul rates increased 2.9% in January, the largest year-over-year increase since last February. Intermodal rates rose 1.7% in January, the first year-over-year increase since August. These rate hikes reflect the supply chain disruption caused by January’s severe winter storms.
- In preparation for Valentine’s Day, global carriers have seen increases in flower activity this year compared to last year. One of the largest flower hubs in the world is Miami International Airport, where 85% to 90% of imported flowers enter the U.S. UPS transported approximately 118 million flowers to loved ones this Valentine’s Day. This year, the company increased air travel between Miami and Latin America to manage the increased traffic and added a number of extra flights.
- Import volume through major U.S. container ports is expected to decrease 8.4% in February from the same month last year. In December, the latest month for which numbers are available, U.S. container ports handled 1.3 million TEUs, a 3.3% decrease over the previous month and a 0.6% increase over the same month last year. Total U.S. containerized imports are expected to increase 4.1% in 2014.
- Mediterranean Shipping Company was the largest U.S. cargo carrier in 2013. The shipping line brought in over 2.5 million TEUs to the U.S. last year, a 7% increase year-over-year. Maersk Line was the second largest carrier in 2013 but decreased by 3%. Evergreen Line moved up to third place, passing APL Company and Hapag Lloyd.
- The Georgia Ports Authority will contribute $3 million to the U.S. Army Corps of Engineers for harbor maintenance dredging at the Port of Brunswick. The additional funds will help the Corps deepen the entrance channel to the second busiest automobile import/export terminal in the nation.
Warehousing & Distribution
- Ollie’s will locate its new Southeast distribution center in Commerce, Georgia, creating approximately 175 new jobs and investing $14.56 million into the project over the next five years. The new 965,000 square foot distribution center will support the company’s plans to expand its footprint in the Southeast, including 30-40 new stores in Georgia in the next four years.
- IVC US, a Dalton-based flooring company, will expand its operations in Whitfield County, Georgia, creating 200 new jobs and investing more than $80 million over the next five years.
- Daniel Defense, a small arms manufacturer, has announced that it will expand its existing operation in Bryan County, Georgia, creating 120 new jobs and investing $20 million into the project over the next five years.