Shipping and Logistics
October Logistics Update
Written by Sandy Williams
October 20, 2015
Shipping in the various transportation sectors is relatively subdued in October.
Low freight rates for seaborne cargo continues to be a problem for carriers, according to the Oct. 15 MID-SHIP Report. Low volumes, weak worldwide economies, and a strong dollar are affecting rates for both bulk carriers and container lines.
The Baltic Dry Index was at 762 as of Tuesday, Oct. 20, up 15 points from yesterday but well below its high point this year of 1222 on Aug 5, 2015. The Cape Index rose 87 points giving support to the BDI increase. The Panama and Supramax Indexes fell 9 and 2 points, respectively. The BDI is the weighted composite index of the Cape, Panamax and Supramax indices. The BDI tracks shipping rates for dry bulk cargos like iron ore, coal and grain and is considered a barometer for global steel trade.
Barge traffic is slowing with grain shipments down 5 percent from last week and 32 percent from the same time last year. Grain exports are down and river traffic is relatively flat. Winter maintenance is scheduled for locks on the Upper Mississippi ending barge loads heading to points north of Quincy, Illinois.
The American Trucking Association reports that For-Hire Truck Tonnage increased 0.7 percent in September after decreasing 0.9 percent in August.
“Right now, we’re in a bit of a soft patch because inventories are higher than one would expect,” ATA Chief Economist Bob Costello said during ATA’s Management Conference & Exhibition. “Once that normalizes, we should see a healthy rebound in freight volumes.” Costello added that business is generally good across the sector but that the shortage of drivers makes it difficult for fleets to add capacity. Earlier this month, ATA reported that there will be a shortage of 48,000 drivers by the end of 2015.
DAT Trendlines reported that flatbed rates dropped 2 cents to $2.01 per mile during the week of Oct. 4-10. Highest rates were reported in the Northeast at $3.09 per mile. Diesel fuel averaged $2.53 per gallon as of Oct. 19.
Rail traffic for the week ending Oct. 10 fell 2.78 percent year over year to 556,233 carloads and intermodal units. Metallic ores and metals carloads were down 23.5 percent to 20,084 carloads.
Sandy Williams
Read more from Sandy WilliamsLatest in Shipping and Logistics
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.
ILA rejects 50% raise, strikes ports on East Coast, Gulf Coast
The International Longshoremen’s Association (ILA) launched a strike just after midnight on Tuesday at East Coast and Gulf Coast ports. The work stoppage spans from New England to New Orleans. It came after a last-ditch offer by the United States Maritime Alliance (USMX), which represents maritime employers, failed to meet union demands.
Calls for talks as coastwide labor strike could hit supply chains on Tuesday
Unless a last-minute deal is struck by midnight on Monday, a massive work stoppage will hit ports up and down the East and Gulf Coasts on Tuesday and cause widespread supply chain disruption. Master contract negotiations remain stalled between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). The employer group took […]
Supply chain storm brewing as strike threatens East, Gulf Coast ports
A potential labor strike is threatening to disrupt supply chains up and down the Atlantic and Gulf Coasts beginning next week.