Economy
Seaborne Freight Rates Drop Dramatically
Written by Sandy Williams
April 10, 2014
Seaborne freight rates are in a valley trough right now according to the April 9 MID-SHIP Report. Freight prices dropped dramatically in all segments of the Baltic market as oversupply of ships caught up with diminished demand, exacerbated by extreme winter weather this year.
Other pressure to rates included China turning away shipments of US corn that were “grown with an unapproved genetically modified trait,” falling commodity prices and a statement by the World Trade Organization (WTO) that “global trade has failed to rebound as expected.”
In the US, thawing rivers are being watched closely for rising water levels that can disrupt barge traffic. The Illinois River is clear with all locks operating. The Upper Mississippi is still ice clogged above mile 648/Lock #9 in the area of Praire Du Chien. MID-SHIP reports the entire river should be navigable by the end of April. The Lower Mississippi is experiencing high water levels with the river cresting at New Madrid on Wednesday.
Supply chains are still feeling the impact of winter delays. Truck freight has seen a dramatic increase but truck availability is insufficient to meet demand.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
US sets Section 232 tariffs on trucks and buses
Medium- and heavy-duty trucks (MHDV) and buses imported to the US will start being charged Section 232 tariffs beginning Nov. 1.
AMU: Consumer auto delinquencies: Warning sign for consumer health?
The Consumer Federation of America estimates rising total auto debt at a staggering $1.66 trillion, along with increasing repossessions and a sharp increase in delinquencies.
Beige Book: Regional market growth remains mostly flat
Economic growth in some US regions in September was offset by challenges in others, causing the market to appear largely unchanged overall, according to the Federal Reserve’s latest Beige Book report.
ISM September survey captures deepening manufacturing gloom
The Institute for Supply Management’s (ISM) latest monthly report on manufacturing reflects a bleak view of American industry in September.
Key industries concerned over government shutdown’s impact on steel, manufacturing
Trade groups cautioned that a prolonged shutdown could strain US industry.