Shipping and Logistics
June Logistics Report
Written by Sandy Williams
June 11, 2016
Freight levels for dry bulk cargo are slowly recovering from the historic lows seen in first quarter of this year, according to the most recent MID-SHIP Report.
The dry bulk market continues to suffer from an oversupply of vessels and slow demand growth, although rates are generally holding firm in most of the seabourne markets. The Baltic Dry Index was at 610 as of June 10, up from its low on of 290 on February 10, 2016. In April the index climbed above 700 points but fell in unison with lower pricing for iron ore, one of the main commodities followed by the BDI.
The expansion to the Panama Canal will be inaugurated on June 26th with the passage of a single vessel, the container ship Cosco Shipping Panama, which was selected by lottery to be the first. More than 100 of the large Neo-Panamax vessels have booked passage through the locks beginning June 27th. The deeper and wider locks will more than double the cargo capacity of the Panama Canal.
Summer maintenance closures for locks on American rivers are underway. Ports serviced by the Gulf Intracoastal Waterway East to and from New Orleans will be affected by the repairs to the Industrial Canal Locks, scheduled to last around 120 days.
Trucking spot market rates increased in the week of May 29-June 4. Van rates were up 5.2 percent, Reefer 3.2 percent, and flatbed rates 0.5 percent. As of June 6 the U.S. diesel rate was $2.40 per gallon. Flatbed load-to-truck ratio declined from 21.6 to 16.9 loads per truck from April to May. The national flatbed rate the week ending June 4 was $1.93/mile.
The Association of American Railroads reported US rail traffic for the week ending June 4 was 224,258 carloads, down 16.6 percent compared to the same week in 2016. Intermodal volume was 231,008 containers and trailers, down 17.9 percent year over year. Carloads were down 16.6 percent to 224,258 carloads.
Sandy Williams
Read more from Sandy WilliamsLatest in Shipping and Logistics
Wittbecker: Challenges ahead for container freight in 2025
In 2024, volatility with a capital “V” has been the rule. That will remain high heading into 2025.
Reibus: November flatbed rates cool after October bump
Following the short-lived East Coast port labor strike in October, we now turn toward the Jan. 15 deadline to reach a long-term agreement.
Reibus: Flatbed, dry van rates ticked up post-hurricanes
After closing the third quarter -3.84% on a y/y basis, our first look at fourth-quarter flatbed spot rates puts us virtually flat y/y, coming in at -0.68%.
Leibowitz: Thorny issues remain as ILA-USMX talks kicked into 2025
On Thursday, the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX), representing carriers and port operators on the East and Gulf Coasts, announced a three-and-a-half-month extension of the recently expired collective bargaining agreement. The extension kicks the can down the road until Jan. 15, 2025, after the 2024 election and the certification of the results on Jan. 6.
Ports strike over as longshoremen reach tentative pact with employers
The International Longshoreman's Association (ILA) union and the United States Maritime Alliance (USMX) reached a tentative agreement on wages on Thursday evening. The move ends a strike at East Coast and Gulf Coast ports that began on Tuesday and that had threatened significant supply-chain disruptions.