Economy
MID-SHIP Reports Tight Barge Availability
Written by Sandy Williams
December 9, 2014
Barge availability is still tight in the U.S. due to large cargo volumes of southbound grain, and northbound volumes of steel and salt, according to the Dec 4 MID-SHIP report.
The US Department of Agriculture reports rates for southbound grain have dropped to 426 percent of tariff after reaching 800 percent or more in November. Northbound barge rates were at historical levels in November but are now trending downward. MID-SHIP expects prices to remain elevated well into first quarter 2015 and contract levels to be higher than 2014.
Berth congestion for bulk vessels on the Mississippi has been minimal but break bulk terminals have been very active says MID-SHIP. Delays of 2-3 weeks have been seen at terminals in Houston due to berth congestion from strong steel imports.
Winter storms in the Midwest and Eastern USA caused early icing problems on the Illinois River and Upper Mississippi that has since resolved. Another harsh winter is expected to disrupt barge traffic.
In the seabourne markets, Capesize rates have been dropping in part due to weakness in the iron ore market. Both Panamax and Supramax rates increased over the past the three weeks.
In the Handysize Market the US Gulf tonnage is tight as end of the year shipments are completed. The average rate for the six time charter routes was up 10 percent to $7,241 as of Dec. 4.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
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.
Chicago Business Barometer catches cold winds of contraction in September
The Chicago Business Barometer's September reading indicates a softening in overall business activity in the Midwest for the third consecutive month, with new orders and backlogs retreating further.
Metalforming market sentiment takes a dive in September: PMA
Metalforming manufacturers anticipate a decrease in near-term conditions, according to the Precision Metalforming Association's (PMA) Business Conditions Report for September.
AIA: Architecture firms still under pressure
Architecture firms reported a modest improvement in billings through August, yet business conditions remained soft, according to the latest Architecture Billings Index (ABI) release from the American Institute of Architects (AIA) and Deltek.