A Quick Glance Into The Logistics Market - July 2015

Georgia Logistics compiles a monthly set of facts and figures regarding the Logistics Markets. We selected a few facts to share with you :-

Gross Domestic Product: The U.S. GDP decreased 0.2% in the first quarter of 2015 according to the most recent estimate released by the Bureau of Economic Analysis on June 24. (Source: US BEA)
U.S. Trade Deficit: The U.S. trade deficit increased 2.9% in May to $41.9 billion. Exports decreased 0.6% to $188.6 billion and imports decreased 0.1% to $230.5 billion. (Source: US DOC & Census Bureau)
Consumer Confidence: The Consumer Confidence Index increased to 101.4 in June 2015, up 6.8 from a revised 94.6 in May. (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 decreased to 5.3% in June 2015 compared to 5.5% in May 2015. A
preliminary 223,000 net new jobs were created in June 2015. (Source: US DOL)
Leading Economic Index: The Leading Economic Index for the U.S. increased 0.7% in May to 123.1 (2004=100), following a 0.7%
increase April 2015, and a 0.4% increase in March. (Source: Conference Board) (The LEI is a composite of 10 economic indicators that together create an analytic system designed to signal peaks and troughs in the business cycle. The LEI reveals patterns in economic data in a clearer and more convincing manner than any individual component alone.)
Retail Sales: Retail and food service sales fell in June to $442 billion, down 0.3% from the previous month, and up 1.4% above June 2014. Non-store retailer sales were down 0.3% from May 2015, and up 0.6% above last year. (Source: US Census)
Manufacturing & Trade Sales: Total combined sales and manufacturing shipments totaled nearly $1.323 trillion in May 2015, up 0.4%
from April and down 2.2% from the previous year. (Source: US Census)
Manufacturing & Trade Inventory: Total value of inventory on hand is estimated at $1.797 trillion in May, up 0.3% from April 2015, and up
2.4% from May 2014. (Source: US Census)
Housing Starts: In May 2015, housing starts decreased 11.1% from the previous month to an annual rate of 1,036,000 units. Starts for single-family homes were an annualized 680,000 in May 2015, a 5.4% decrease from 719,000 in April 2015. The index of pending home sales (sales that haven’t closed yet but contracts have been signed) was 112.6 in May 2015, up 0.9% from the previous month and the highest level since April 2006. (Source: U.S. DOC)
Consumer & Producer Price Index: The consumer price index for all urban consumers increased 0.4% in May on a seasonally adjusted basis from the previous month. Over the last 12 months, the all items index was unchanged before seasonal adjustment. The producer price index for final demand increased 0.5% in May from the previous month. Prices for finished goods decreased 0.4% from the previous month. (Source: US Bureau of Labor Statistics)
Cass Freight Index: The June shipments index rose 0.2% from the previous month and decreased 3.4% year-over-year. The June expenditures index rose 2.4% for the month, and decreased 5.8% year-over-year. (Source: Cass Information Systems | Cassinfo.com) (Based upon transportation dollars and shipments of Cass clients comprised of over 400 shipping companies)
Import Volumes: In May, the U.S. imported $189.2 billion of cargo, decreasing 0.2% from April 2015. The May imports of automotive vehicles, parts, and engines ($29.5 billion) were the highest on record. (Source: US Census)
Export Volumes: In May, the U.S. exported $127.7 billion of cargo, decreasing 1.3% from April 2015. (Source: US Census)
Import & Export Price Index: U.S. import prices decreased 0.1% in June, following a 1.2% increase the previous month. The June drop was led by lower nonfuel prices, which more than offset an increase in fuel prices. Import prices fell 10% over the past year. The price index for U.S. exports decreased 0.2% in June and decreased 5.7% year-overyear. (Source: Bureau of Labor Statistics)
E-Commerce: E-Commerce revenue in May 2015 is estimated to be up 11% year-over-year. The share of mobile orders (phone and tablet) out of all e-commerce orders has increased to 28%, up from 20% in 2014. (Source: Custora E-Commerce Pulse)
Multimodal News Clips: 
  • U.S. light vehicle sales were a seasonally adjusted and annualized 17.1 million in June 2015, down slightly from May’s 17.7 million but impressive nonetheless. Annualized sales have exceed 17 million three months out of six so far this year. (Source: AAR)
  • According to the 26th Annual State of Logistics Report, the logistics and transportation industry chalked up its best year since the Great Recession, with U.S. business logistics costs rising 3.1% to $1.45 trillion last year. (Source: Logistics Management)
U.S. Freight Rail Traffic: Total carloads in June 2015 decreased 7.7% from June 2014. Weekly average total carloads in June 2015
were 271,767, the second-lowest weekly average for June since prior to 1988. (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 June 2015 was 3.7% higher, year-over-year. The weekly average of 279,287 units
in June was the highest weekly average for any month in history. (Source: AAR.org)
(Report includes rail car-loadings by 19 different major commodity categories as well as intermodal units)
Railroad Fuel Price Index: The index of average railroad fuel prices in May 2015 was 403.7, up 9.2% from the previous month and
32.7% lower year-over-year. (Source: AAR.org)
(Average monthly price for gallons purchased by freight railroads; Includes federal excise taxes, transportation, and handling expenses)
Class 1 Railroad Employment: Railroad employment in May 2015 decreased 0.6% from the previous month, to 172,943 employees total.
Total Class 1 rail employment in May increased 4.12%, year-over-year.
(Source: U.S. STB)
Railroad News Clips: In June 2015, U.S. rail intermodal units again exceeded U.S. rail carloads. The first and only other time in
history that happened was in May 2015. (Source: AAR)
Truckload Freight: The spot market for truckload freight in June increased 5.7% compared to the previous month, and was
21% lower year-over-year. Truck capacity increased 4.9% for the month, and increased 51% year-overyear.
(Source: DAT Trendlines | www.dat.com)
Trucking Employment: The trucking industry workforce increased by 7,400 employees in June. The trucking workforce increased
3.0% over the previous year. (Source: U.S. Bureau of Labor Statistics)
Trucking News Clips:
  • Congress is proposing a bill that would drop the driving age to 18 for commercial heavy-duty truckers.The current law requires drivers be at least 21 before they can drive commercial trucks across state lines. (Source: Stamford Advocate)
  • Trucking employment surged for a second straight month in June, allowing U.S. trucking companies tofinally employ more workers than they did before the Great Recession. Trucking firms still need an additional 35,000 to 40,000 drivers to meet demand, according to the American Trucking Association. (Source: JOC)
Atlanta Air Cargo Traffic: In May, Hartsfield-Jackson Atlanta International Airport transported 51,126 metric tons of cargo, a 0.8% decrease from the previous month and a 0.2% decrease year-over-year. (Source: HJIA)
Jet Fuel Prices: As of July 9, 2015, the global average jet fuel price was $72.7 per barrel; down 4.8% from the previous month, and 40.2% lower year-over-year. (Source: IATA.org, platts.com)
(The weekly index and price data shows the global average price paid at the refinery for aviation jet fuel)
Air Freight News Clips: Worldwide sales of semiconductors reached $28.2 billion for May 2015, an increase of 5.1% from May 2014, and 2.1% higher than the previous month’s total of $27.6 billion. This is the 25th consecutive month of year-to year-sales increases. (Source: Semiconductor Industry Association)
Ocean Bulk Freight Rates: The Baltic Dry Index rose 34% in June, ending at 794. The BDI has fallen 5.02% 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 set all-time records for both container volumes and total tonnage in May with strong growth across several key business sectors. The GPA moved more than 338,000 TEUs and 2.9 million tons of freight in the month of May. (Source: GPA)
  • In the first half of 2015, East and Gulf coast ports increased their share of U.S. container imports from the same period last years, thanks to shippers diverting cargo from the West Coast during the peak of congestion and even after marine terminals cleared. East Coast ports grew their share of imports by 3% while the Gulf Coast grew by 1%. West Coast ports share of imports decreased 5%. (Source: JOC)
Warehouse Rent Rates: In Q1 2015, warehouse and distribution rental rates in the US averaged $5.70 per square foot, up from $5.64 per square foot in the previous quarter. Rental rates for warehouse space averaged $4.10 per square foot in Atlanta. (Source: NGKF)
Purchasing Managers Index: The National PMI rose to 53.5% in June 2015, an increase of 0.7% over the previous month, and the 30th consecutive month for growth. New orders increased 0.2 points to 56% and production decreased 0.5 points to 54.0%. (Source: Institute for Supply Management)
(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.)
W&D Business News:
  • First Quality Packaging Solutions, a leading plastics and packaging company, will locate manufacturing operations in Macon, GA, creating 115 jobs and investing $68 million over the next five years. (Source:Georgia.org)
  • National Beef Packaging Company, a leading beef processing and packing company will expand its operations in Moultrie, GA, creating approximately 200 jobs and investing roughly $9 million into the expansion. The Colquitt County facility houses consumer-ready beef, pork, and ground beef processing operations that service customers throughout the Southeastern region of the United States.(Source:Georgia.org)
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