English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

U.S. freight climate still faces “hurdles”

VIENNA, VA: The CASS Freight Index reports domestic freight shipment volumes in North America fell 6.2 percent from November to December last year, making it the largest monthly drop in 2013 and the third straight monthly decline.

In addition, December shipments were 3.2 percent lower year-on-year and 1.8 percent lower than 2011.

In line with the volume decrease, freight spending dropped 5.4 percent from November to December. Given that rates for most modes remained largely unchanged in 2013, CASS says these numbers support other data that the average shipment was larger and therefore more expensive.

The CASS Index does not capture small parcel traffic, so the drop in freight movements was somewhat offset by the increase in small package shipping during the holiday period.

41aRaGVKyAL. SL500 AA300 Despite the U.S. National Retail Federation reporting that Thanksgiving/Black Friday sales fell 2.7 percent, the first drop in seven years, on-line sales were at record highs. With 36.8 million items ordered from Amazon.com on Cyber Monday (December 2), the company had to limit signups for its Amazon Prime service so that it could honor its shipping guarantees to existing members.

"This staggering order volume came at the rate of 426 items per second," says report author Rosalyn Wilson, a senior business analyst with Virginia-based consulting company Delcan Corporation.

Reviewing 2013, Wilson says the freight climate was "mediocre" with the average number of monthly freight shipments 0.7 lower than in 2012. "Inventories remained high, manufacturing stalled mid‐year, and exports and imports were relatively flat for most of the year. All of this contributed to another bumpy year in the recovery that hasn't quite gotten there," she adds.

This was reflected in five three‐year lows in shipment volumes; freight spending that saw eight three‐year highs; a fall in U.S. unemployment and yet the number of new jobs created averaged below 2012.

At the same time the number of workers leaving the U.S. labour pool has now reached near‐historic highs notes Wilson. In addition, the Congressional budget stand‐off in the autumn that forced 800,000 federal workers, and even more contractors, off the job led to a slowing of economic growth in the fourth quarter after a gain of 4.1 percent in the third.

Wilson says imports and exports slowed in the third quarter of 2013; the housing market lagged in the fourth quarter and while manufacturing gained strength for most of the year, it was at a very modest rate of two-tenths of one percent. "2013 was still well below pre‐recession production levels," she adds.

Looking to 2014 the analyst thinks the freight picture "should strengthen as the year progresses despite some hurdles. Globally, new orders are up, but more for exports to developing countries than to the U.S. or Europe. The market for U.S. goods should strengthen by the second half."

Wilson thinks consumers still hold the key to a fully recovered U.S. economy and she warns "there are few signs that they feel confident to resume old spending habits".

Nevertheless she predicts freight growth will still be "measurably stronger" this year with volumes up consistently for several months, putting pressure on capacity before there is a subsequent rise in rates. "The virtual rate freeze that has existed for almost three years should thaw and give way to higher freight expenditures by the second half of the year due to higher costs and volumes."

News

Written on 26/05/2017, 16:16
powerful-future-ahead-for-madagascarPORT LOUIS, Mauritius. May 24, 2017. Volga-Dnepr Airlines has now completed a series of flights begun in March to deliver power generators from Mauritius...
Written on 25/05/2017, 20:07
rhinos-return-to-rwandaAKAGERA, Rwanda: May 25, 2017. Ten years after the Eastern black rhino disappeared from Rwanda following decades of poaching, 19 animals have now taken up...
Written on 25/05/2017, 18:33
port-everglades-gets-expansion-go-aheadPORT EVERGLADES, FL: May 24, 2017. Port Everglades is to invest US$437.5 million to add new berths for larger cargo vessels and install crane rail...
Written on 24/05/2017, 20:42
hapag-lloyd-takes-a-big-step-with-uascHAMBURG: May 24, 2017. Hapag-Lloyd and the United Arab Shipping Company (UASC) have completed their merger. Shareholders at the annual general meeting on...
Written on 23/05/2017, 21:03
dhl-adds-rail-link-between-shenzhen-and-belarusSHENZHEN: May 22, 2017. DHL Global Forwarding has launched the first regular LCL and FCL rail service that connects Shenzhen to Minsk in Belarus in less...
Written on 22/05/2017, 19:48
cathay-pacific-launches-restructuring-with-layoffsHONG KONG: May 22, 2017. Cathay Pacific is making 600 head office staff redundant following the announcement in March of a three-year business...
Written on 18/05/2017, 21:59
air-zimbabwe-banned-from-europeBRUSSELS: May 17, 2017. In an update to its Air Safety List, the European Commission has banned Air Zimbabwe from flying to the 28 EU Member States "due...
Written on 17/05/2017, 22:43
russian-logistics-network-signs-development-agreementMUNICH: May 17, 2017. Meeting at the transport logistic trade fair last week, members of Russia's Associated Cargo Experts Alliance (ACEX) and the...
Written on 17/05/2017, 19:41
oman-to-adopt-tir-conventionMUSCAT: May 17, 2017. The International Road Transport Union (IRU) is to support the Oman Global Logistics Group (OGLG) in developing Oman as a major...
Written on 15/05/2017, 21:56
record-port-call-for-savannahSAVANNAH, GA: MAY 15, 2017. COSCO Development, at 13,000 TEU the largest box ship to call at an U.S. East Coast port, moved a record 10,000 containers...
Written on 11/05/2017, 14:24
lufthansa-cargo-still-caring-for-humansMUNICH: May 10, 2017. Lufthansa Cargo has celebrated the 10th anniversary of its employee-inspired humanitarian logistics program Cargo Human Care (CHC)...
Written on 10/05/2017, 20:34
renewed-b-logistics-rebrands-as-lineasMUNICH: May 10, 2017. Less than two weeks after it re-launched itself as Lineas, rail logistics company B Logistics has come to transport logistic in...
Written on 09/05/2017, 21:52
cranes-get-a-lift-from-hansaHAMBURG: May 09, 2017 – Hansa Heavy Lift (HHL) has moved two 870 tonnes cranes from a decommissioned power station at London's port of Tilbury to...
Written on 09/05/2017, 18:49
ups-to-handle-dubai-expo-logisticsDUBAI: May 09, 2017. UPS is to sponsor the logistics for World Expo 2020 Dubai, to be held between October 2020 and April 2021. The company has also...
Written on 09/05/2017, 16:51
cargolux-carrier-of-choice-emirates-skycargoMUNICH: May 09, 2017. Emirates SkyCargo and Cargolux are to share aircraft capacity, networks and respective hubs in Dubai and Luxembourg in a new...
Written on 05/05/2017, 20:30
new-multipurpose-service-links-u-s-and-mediterraneanLEER, Germany: May 03, 2017. Multipurpose vessel operator BBC Chartering is adding ocean capacity between the Mediterranean and the US- East Coast, with...
Written on 04/05/2017, 20:42
royal-schiphol-group-costs-klm-millions-claimAMSTERDAM: May 04, 2017. KLM reported Q1 2017 revenue of €2.2 billion - a 3.3 percent rise over the same period last year. EBITDA increased €14 million to...
Written on 04/05/2017, 19:06
bmw-to-increase-rail-link-to-chinaMUNICH: May 03. China's news agency Xinhua reports BMW plans to increase its use of 'Silk Road' rail networks to ship components from Europe. According...
Written on 03/05/2017, 20:21
ethiopian-provides-support-for-drought-reliefTOULOUSE: May 02, 2017. German NGO humedica e.V and UK non-profit Aviation without Borders have used an Ethiopian Airlines A350 XWB delivery flight to...
Written on 28/04/2017, 19:13
amazon-3rd-party-fulfillment-revenue-up-34-percentSEATTLE: April 28, 2017. Amazon has reported net income of US$724 million on sales of US$35.71 billion for the first quarter of 2017. Results for the...

- powered by Quickchilli.com -