A Quick Glance Into The Logistics Market - August 2015
By on Aug 18, 2015
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Georgia Logistics compiles a monthly set of facts and figures regarding the Logistics Markets. We selected a few facts to share with you :-
U.S. MARKET:
Gross Domestic Product: The U.S. GDP increased an annualized 2.3% in the second quarter of 2015 according to the most recent estimate released by the Bureau of Economic Analysis on July 27. (Source: US BEA)
U.S. Trade Deficit: The U.S. trade deficit increased 4.5% in June to $43.8 billion. Exports decreased .05% to $188.6 billion and imports increased 1.2% to $232.4 billion. (Source: US DOC & Census Bureau) Consumer Confidence The Consumer Confidence Index decreased to 90.9 in July 2015, down 8.9 from a revised 99.8 in June. This is the biggest one-month decline in almost four years. (Source: The Conference Board) (The consumer confidence index is based on a monthly survey of 5,000 U.S. household. It is designed to gauge the financial health, spending power, and confidence of the average U.S. consumer.)
Unemployment Rate: The unemployment rate in America remained at 5.3% in July 2015. A preliminary 215,000 net new jobs were created in July 2015. (Source: US DOL)
Retail Sales: Retail and food service sales increased in July to $446.5 billion, up 0.6% from the previous month, and up 2.4% above July 2014. Non-store retailer sales were up 1.5% from June 2015, and up 6.0% above last year. (Source: US Census)
Manufacturing & Trade Sales: Total combined sales and manufacturing shipments totaled nearly $1.325 trillion in June 2015, up 0.2% from May and down 2.5% from the previous year. (Source: US Census)
Manufacturing & Trade Inventory: Total value of inventory on hand is estimated at $1.812 trillion in June, up 0.8% from May 2015, and up 3.0% from June 2014. (Source: US Census)
Housing Starts: In June 2015, housing starts increased 9.3% from the previous month to an annual rate of 1,170,000 units. The 3 month average from April to June 2015 is 1.14 million, the highest since December 2007. Starts for single-family homes were an annualized 685,000 in June 2015, a 0.9% decrease from May 2015. The index of pending home sales (sales that haven’t closed yet but contracts have been signed) was 110.3 in June 2015, down 1.8% from the previous month and up 8.2% from June 2014. (Source: U.S. DOC)
Consumer & Producer Price Index: The consumer price index for all urban consumers increased 0.3% in June on a seasonally adjusted basis from the previous month. Over the last 12 months, the all items index rose 0.1% before seasonal adjustment. The producer price index for final demand increased 0.2% in July from the previous month. Prices for finished goods increased 0.4% from the previous month.(Source: US Bureau of Labor Statistics)
MULTIMODAL:
Import Volumes: In June, the U.S. imported $191.1 billion of cargo, increasing 1.4% from May 2015. The June imports of food, feeds, and beverages ($11.1 billion) as well as automotive vehicles, parts, and engines ($29.8 billion) were the highest on record. (Source: US Census)
Export Volumes: In June, the U.S. exported $127.6 billion of cargo, decreasing 0.2% from May 2015. (Source: US Census)
Import & Export Price Index: U.S. import prices decreased 0.9% in July, after recording no change the previous month. Both fuel prices and nonfuel prices contributed to the July decrease. Import prices fell 0.9% in July, the largest 1-month drop since January. The price index for U.S. exports decreased 0.2% in July and decreased 6.1% year-over-year. (Source: Bureau of Labor Statistics)
E-Commerce: E-Commerce revenue in June 2015 is estimated to be up 10.8% year-over-year. The share of mobile orders (phone and tablet) out of all e-commerce orders has increased to 28%, up from 22% in 2014. (Source: Custora E-Commerce Pulse)
Multimodal News Clips:
- U.S. light vehicle sales were a seasonally adjusted and annualized 17.5 million in July 2015, up from June’s 17.0 million and on pace to exceed 17 million for the full year, which hasn’t happened since 2001. (Source: AAR)
- A new report says when it comes to cargo thefts in the U.S., food and drink is the most stolen type of freight since 2008, according to the logistics security services provider FreightWatch International. While the overall volume of thefts is dropping, the average loss value is steadily climbing. (Source: Truckinginfo.com)
RAIL:
U.S. Freight Rail Traffic: Total carloads in July 2015 decreased 6.5% from July 2014. Weekly average total carloads in July 2015 were 275,282, the lowest weekly average for July since 2009. (Source: AAR.org) (Report includes rail car-loadings by 19 different major commodity categories as well as intermodal units)
U.S. Intermodal Rail Traffic: Intermodal rail traffic in July 2015 was 3.5% higher, year-over-year. The weekly average of 266,378 units in July was the highest weekly average for July in history. (Source: AAR.org)
(Report includes rail car-loadings by 19 different major commodity categories as well as intermodal units)
Short Line Rail Traffic: In July 2015, short line railroad shipments across North America fell 7.3% compared to the same month last year. A sampling of about 431 small railroads in the U.S. and Canada loaded 690,373 railcars and intermodal units during the month of July. (Source: RailConnect Index | GE Transportation)
Railroad News Clips:
- Total intermodal growth in North America was up 4.5% year-over-year in Q2 2015 and up 2% from the previous quarter. Railroads and the top intermodal associations maintain intermodal growth will kick into a higher gear before the end of the year. (Source: JOC)
TRUCKING
Trucking Volume: The ATA’s seasonally adjusted cargo index decreased 0.5% to 131.1 in June 0215. The for-hire truck tonnage index rose 1.8% from June 2014, which was above the 1.5% gain in May. (Source: American Trucking Association | Trucking.org)
Truckload Freight: The spot market for truckload freight in July decreased 28% compared to the previous month, and was 36% lower year-over-year. Truck capacity increased 1.5% for the month, and increased 32% year-over-year. (Source: DAT Trendlines | www.dat.com)
Trucking News Clips:
- At the end of September, a final rule will be released requiring all interstate commercial truck drivers to toss out their paper logbooks within two years, and use some type of electronic device to log their hours on and off duty. (Source: JOC)
- Cargomatic, an Uber-like technology for matching trucks and shipments has expanded to the New York regional market. The company has operated in Southern California since early 2014. It uses an online platform to connect shippers needing service with trucking companies that have available capacity. (Source: JOC)
AIR FREIGHT
Air Cargo Traffic: Global air freight traffic in June increased 1.2% from one year ago, and decreased 0.4% from the previous month. (Source: IATA.org) (Global air freight covers international and domestic scheduled air traffic.)
Atlanta Air Cargo Traffic: In June, Hartsfield-Jackson Atlanta International Airport transported 50,619 metric tons of cargo, a 0.99% decrease from the previous month and a 1.72% increase year-over-year. (Source: HJIA)
Air Freight News Clips: Worldwide sales of semiconductors reached $84.0 billion during the second quarter of 2015, an increase of 1.0% over the previous quarter and 2.0% increase compared to the second quarter of 2014. Year-to-date sales during the first half of 2015 were 3.9% higher than they were at the same point in 2014. (Source: Semiconductor Industry Association)
OCEAN FREIGHT:
Import Volumes: In June, the latest month for which after-the-fact numbers are available, U.S. container ports handled 1.57 million TEUs, a 2.5% decrease from the previous month and a 6.2% increase from the same month last year. (Source: NRF/Hackett Associates)
Shanghai Containerized Freight Index: The August 10 SCFI comprehensive reading was $749.62 per FEU; up 12.5% from last month. The spot rate for shipments to the U.S. East Coast was $2,985 per FEU, up 1.1% from the previous month. (Source: Shanghai Shipping Exchange | www1.chineseshipping.com.cn/en) (The Shanghai Containerized Freight Index is a weekly reported average export spot rate from Shanghai for 15 different trade lanes.)
Ocean Bulk Freight Rates: The Baltic Dry Index rose 41% in July, ending at 1,131. The BDI has risen 53.5% year-to-date. (Source: www.bloomberg.com/quote/BDIY:IND) (The Baltic Dry Index is an index that tracks and averages worldwide international shipping prices of various dry bulk cargoes.)
Ocean Freight Business News:
- The Georgia Ports Authority moved a record 3.66 million TEUs in Fiscal Year 2015, an increase of more than half a million TEUs. The 3.66 million TEUs crossing Savannah’s docks in FY15 constitutes a 17% increase compared to the previous fiscal year. FY14 was the first year in which GPA moved more than 3 million TEUs. (Source: GPA)
- Gov. Nathan Deal, the Georgia Ports Authority, Murray county, and CSX Transportation signed a Memorandum of Agreement establishing the Appalachian Regional Port in Chatsworth, GA. Its service area will include North Georgia, Alabama, Tennessee, and parts of Kentucky. The new inland port will deliver goods more efficiently to the GPA’s Garden City Terminal, the second busiest container port on the East Coast behind New York-New Jersey. (Source: GPA)
WAREHOUSING & DISTRIBUTION:
Industrial Vacancy: U.S. industrial vacancy now stands at a cyclical low of 7.3%, lower than at any other point in the cycle before the recession. Of the 60 markets tracked, 19 boast a vacancy below 5%. (Source: Cassidy Turley)
Warehouse Rent Rates: In Q2 2015, warehouse and distribution rental rates in the U.S. grew at their fastest pace since the beginning of 2008, hitting $5.42/NNN (triple net lease). This is up 4.8% from the second quarter of 2014, when rents average $5.18/NNN. Rental rates for warehouse space averaged $3.81/NNN in Atlanta, up 8.2% from the previous year. (Source: Cassidy Turley)
W&D Business News:
- Eastman Kodak, a cutting-edge imaging technology company will expand and develop product at its Columbus, GA facility. At fully capacity, Kodak will employ 240 personnel and invest approximately $28 million to meet increased demands for its rapidly growing KODAK SONORA Process Free Printing Plate product line. (Source: Georgia.org)
- CSM Bakery Solutions, a company with origins in the Netherlands, will relocate its global headquarters to Fulton County, creating 120 jobs and investing more than $5.5 million into Sandy Springs. CSM Bakery Solutions is an international leader in its industry, producing a broad range of bakery ingredients, products, and services. (Source: Georgia.org)
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