A Quick Glance Into The Logistics Market - March 2014
Georgia Logistics compiles a monthly set of facts and figures regarding the Logistics Markets. We selected a few facts to share with you :-
- The state of Georgia has experienced a record increase in both exports and imports for the fourth consecutive year. According to the Census Bureau, the state moved up one position ranking in both exports and imports in 2013. Georgia increased to the 11th largest exporting state from the 12th. The state also increased from the 9th largest importing state to the country’s 8th largest importing state.
- The Home Depot’s online sales increased 50% year-over-year in the 3Q and 4Q 2013. Online sales amounted to $585 million in the 3Q, about 3% or the company’s total sales. The Home Depot will spend $300 million this year on e-commerce-related improvements such as additional fulfillment centers, mobile technology, facility enhancements, and a warehouse management system.
- U.S. Class I railroads originated 108,590 carloads of crude oil in 4Q 2013, bringing total Class I crude oil originations for the year to 407,642 carloads. That’s a 74% increase over the 233,819 carloads originated in 2012. In 2013, crude oil accounted for 1.4% of total U.S. Class I originations.
- U.S. freight railroads estimate they will spend about $26 billion to build, maintain, and upgrade their rail networks. In recent years, railroads have spent about 17% of annual revenue on capital expenditures, whereas the average U.S. manufacturer spends about 3%.
- The ATA quarterly driver turnover rate for large truckload carriers dropped to 91% in the 4Q from 97% in the previous quarter. Driver turnover rate has stayed above 90% for the eighth straight quarter.
- Delta Air Lines’ $2.7 billion profit for 2013 was the highest net profit in airline history. The previous record was German carrier Lufthansa’s 2007 profit of $2.6 billion.
- Global air cargo demand growth is projected to hit 4% this year, a significant increase over the previously forecast 2.1% growth rate for 2014. This projected cargo growth and improved passenger demand is expected to offset increased fuel prices to improve profitability throughout the industry. Airline profits are expected to total $18.7 billion in 2014. Higher jet fuel costs will add $3 billion to the industry’s bill this year.
- American Airlines and United Airlines reported year-over-year cargo growth of 11.2% and 7.5%, respectively, in February. American Airlines totaled 173,529 cargo ton miles while United Airlines logged 182,913 cargo ton miles during the month
- Import volume through major U.S. container ports is expected to increase 12.4% in March from the same month last year. In January, the latest month for which numbers are available, U.S. container ports handled 1.36 million TEUs, a 5.3% increase over the previous month and a 4.1% increase over the same month last year. Total U.S. containerized imports are expected to increase 4.1% in 2014.
- Maersk Line, the world’s largest container line, posted a profit of $1.51 billion in 2013, a 228% increase over the $461 million it earned in 2012. The increase in profit was due to higher volumes and steep cost cuts, which offset lower freight rates.
- The container ship capacity on ultra large container vessels, or ships with a capacity of more than 10,000 TEUs, will increase by 31.4% this year, followed by a further 30% in 2015.
- Purchasing Managers Index: The National PMI rose 1.9 points to 53.2 in February 2014. New orders rose 3.3 points to 54.5 and production decreased 6.6 points to 48.2. (The PMI combines data on new orders, inventory, production, supplier deliveries, and employment. A reading above 50 indicates that the manufacturing economy is generally expanding.)
Purchasing Managers Index in Georgia: Georgia’s PMI rose 6.7 points to 56.7 in February, the highest reading since March 2013. New orders in Georgia rose 13.1 points to 58.3 and production rose 13.7 points to 54.2. Georgia’s PMI is now 3.5 points above the national PMI. (The PMI combines data on new orders, inventory, production, supplier deliveries, and employment. A reading above 50 indicates that the manufacturing economy is generally expanding.)
- Niagara Bottling, the nation’s largest private label bottled water supplier, will establish a new facility in Coweta County, Georgia. The company’s new 450,000 square foot facility will represent a $52 million investment and will create more than 40 jobs in the area.
- Gerresheimer Peachtree City, a manufacturer of complex drug delivery systems, will expand in Fayette County, Georgia, creating 120 jobs and investing double-digit millions into the expansion. The German-based company will build and additional 60,000 square foot manufacturing facility on its 35-acre campus.
- Inalfa Roof Systems, a leading global provider of vehicle roof systems, will expand its recently completed 165,000 square foot regional headquarters in Cherokee County, Georgia by an additional 45,000 square feet. The company will invest an additional $6 million and create 100 new jobs in addition to the 300 already announced in June 2013.