GHY Tradelines

(CGFI)

Results published today by the Canadian General Freight Index (CGFI) indicate that the Total Cost of ground transportation for Canadian Shippers increased by 2.4 % in February when compared with January results.

The Base Rate Index, which excludes the impact of Accessorial Charges assessed by carriers, increased by 1.9 % when compared to January 2013.

Average Fuel Surcharges assessed by Carriers have seen an increase from 20.36 % of Base Rates in January to 21.53 % in February.

“Cross border Truckload continued to drive the increase combined with fuel being at the highest level since May 2012.” said Doug Payne, President  & COO, Nulogx. Read more here.
 

(Journal of Commerce)

U.S. Lines will increase rates for shipments from Asia to North America, effective May 21:

• To the U.S. West Coast and Canada’s west coast ports, the hike will be $320 per 20-foot standard container, open top and flat rack; $400 per 40-foot standard container, open top and flat rack; $450 per 40-foot high-cube container; and $506 per 45-foot high-cube container.

• To U.S. inland point intermodal points via the U.S. West Coast and Canada’s west coast, as well as U.S. East Coast ports and reverse inland point intermodal rate points via the U.S. East Coast and Gulf Coast, the increase will be $480 per 20-foot standard container, open top and flat rack; $600 per 40-foot standard container, open top and flat rack; $675 per 40-foot high-cube container; and $760 per 45-foot high-cube container.
 

(CTL / Nulogx)

Results published today by the Canadian General Freight Index (CGFI) today indicate that the Total Cost of ground transportation for Canadian Shippers increased by 0 .575 % in January when compared with December results.

The Base Rate Index, which excludes the impact of Accessorial Charges assessed by carriers, increased marginally by 0.38 % when compared to December 2012. Average Fuel Surcharges assessed by Carriers have seen an increase from 19.66 % of Base Rates in December 2012 to 20.36 % in January 2013.

“Cross border Truckload saw an increase while the other segments (Domestic LTL,TL & Cross Border LTL) had decreases.” said Doug Payne, President & COO, Nulogx. “Of particular note, Total Costs are still trailing behind a year ago levels.”

The CGFI tracks changes in freight costs for Canadian Shippers. The index is published monthly and the results are based on a statistically valid sample of transactions taken from the Nulogx database of more than $750M in annual freight transactions.
 

(Journal of Commerce)

Though ocean freight rates have stabilized, importers and exporters should prepare for a “choppy ride” through the rest of this year, Drewry Supply Chain Advisors warned Thursday.

Despite another year of excess capacity growth, Drewry expects global freight rates to rise through 2013, even though the majority of new ship deployments are destined for the already overburdened east-west trade lanes, where pricing is expected to come under pressure.

The London-based consulting firm said in its latest Logistics Executive Briefing that stronger growth in demand in the north-south trades will buoy up rates enough to lift average global container freight pricing. Drewry is forecasting a modest increase of 4 percent in average global freight rates in 2013, with variations between different routes. Read more here.
 

(IndustryWeek – AFP)

Prices are falling dramatically; for example shipping a 40-foot container from Shanghai to the U.S. West Coast fell from $2,308 to $1,667.

International shipping volumes gained 4% in 2011 to a record 8.7 billion tons even as prices fell sharply owing to surplus capacity, a United Nations think tank said Tuesday.

Despite increasing demand, “world ship supply capacity expanded much faster, at a rate of 10% cent, reaching for the first time a total of 1.5 billion deadweight tons,” the UN’s Conference on Trade and Development’s (UNCTAD) Review of Maritime Transport 2011 explained. Read more here.
 

(Lloyds Loading List – Stuart Todd)

Drewry’s monthly Airfreight Price Index, an average of rates across the westbound Asia-North America and westbound Asia-Europe trades, has plummeted to its lowest level in almost three years.

The shipping consultants say the downward trend is being driven by the “deteriorating macroeconomic environment which has caused continued contraction in demand.”

Airfreight traffic remained largely flat through 2011 and has been declining since, Drewry underlines. “It is dependent on high value, time-critical products which have suffered as cash-strapped Western consumers have tightened their belts as the economic outlook has darkened.”

The Index’s reading reached 109.8 in March (November 2008 = 100), reflecting the peak in rates this year, as product launches, such as Apple’s new iPhone, boosted short term demand. But pricing has since dipped markedly. Read more here.
 

(Trucking Info)

UPS Freight, the nation’s fourth largest less-than-truckload carrier, announced a general rate increase averaging 5.9% covering non-contractual shipments in the U.S., Canada and Mexico.

The rate adjustment takes effect on July 16 and applies to minimum charge, LTL rates and accessorial charges. Customers will be able to view and download the new rates at www.ltl.upsfreight.com.

This follows the announcement of several other rate increases from LTL carriers including Roadrunner Transportation Systems, YRC Freight, FedEx Freight and Con-way Freight.
 

(Journal of Commerce)

Carrier to implement increase rate from $400 to $630

Maersk Line is implementing a new round of general rate increases on various trade lanes that will take effect in May.

The Danish carrier said it will push its rates up by $400 per 20-foot, $500 per 40-foot, $565 per 40-foot high cube and $630 per 45-foot high cube container on cargo from Far East Asia to the U.S. West Coast, starting May 1.

From Far East Asia to the U.S. East Coast, the carrier will apply increases of $560 per 20-foot, $700 per 40-foot, $790 per 40-foot high cube and $885 per 45-foot high cube container, effective May 1. Rates on dry shipments from the U.S. to Far East Asia will increase by $160 per 20-foot, $200 per 40-foot/high cube and $250 per 45-foot high cube container, effective May 1. Read more here.
 

(ifw – David Badger)

While carriers have successfully implemented rate increases to improve their battered financial position, threats still exist that could de-rail this, according to Drewry’s latest quarterly Container Forecaster report.

The report says there is a perception that the industry has turned a corner and the extremely low freight rates seen on the Asia-North Europe trade last year are just a memory. But Drewry warns: “We should not be lulled into a false sense of security by the considerably higher spot rates revealed in the weekly rate indices and think that all is now fixed.”

The report forecasts that east-west freight rates including fuel will rise by as much 13.7% this year, but there are still a number of factors which threaten this, principally overcapacity. It says:?” Demand is by no means certain and we have downgraded our 2012 global forecast to 4.6%, largely on the basis of a weak Eurozone, crippled by debt.” Read more here.
 

(Journal of Commerce Online – William B. Cassidy)

Indexes show shipping costs, spot freight volume edging up in Canada

The Canadian spot market for truckload freight hits its second highest point in 11 years in February, according to TransCore’s Canadian Freight Index.  At the same time, transportation costs are climbing for Canadian shippers, according to the Canadian General Freight Index sponsored by Nulogx.

The TransCore spot market-based index climbed 1% last month from January, with equipment listings on Loadlink climbing 16% year-over-year.  TransCore’s index is based on its Loadlink freight-matching database, which the company says matches more than 13 million Canadian shipments and trucks a year. Read more here.
 

(Truck News)

TransCore’s DAT North American Freight index was up 24% in February compared to January, but declined 5.2% compared to February 2011 when the spot market recorded unseasonably strong freight volumes. In seven of the last 10 years, February has seen month-over-month freight volume increases averaging 21%, according to the report. […]

Truckload freight rates followed seasonal patterns on the spot market for February, which is typically a slow month. For dry vans, the predominant equipment type, rates slipped 4.5% compared to January. Flatbed rates slipped 0.6% and rates for refrigerated vans declined 2.1% month-over-month. Read more here.
 

(Journal of Commerce Online – William B. Cassidy)

More than half of truckers in TCP survey expect pricing, volume to rise next year

A large majority of truckload carriers expect freight volumes and truck rates to rise next year, according to new survey.

Optimism buoyed by manufacturing demand and pre-holiday sales appears to offset economic uncertainty. More than 60% of truckload carriers surveyed in November said they expect volumes to increase in 2012.  Only 2% expect freight levels to drop next year, trucking analysis and research firm Transport Capital Partners said. Read more here.
 

(Journal of Commerce Online – Mike King)

DHL’s Goldberg says operation costs rise even when shipping rates fall

Ocean freight rate volatility is ratcheting up global supply chain costs even when rates head downward, said a DHL Global Forwarding executive.

The “roller coaster” of slot supply and demand on mainline routes in recent years had “caused havoc” to supply chains, said David Goldberg, DHL’s senior vice president for ocean freight in the North Asia Pacific. Continual boom-bust doesn’t benefit lines or the buyers of their services who would prefer stability to allow better planning.   “The amount of management time and effort involved by DHL together with our customers does increase significantly for something which we don’t see bringing much benefit to the supply chain,” he said. Read more here.
 

(Journal of Commerce Online – William Cassidy)

Economist predicts pressure on shippers as capacity remains constrained

Shippers are likely to face steep increases in truckload rates in the next two years, followed by a recession in 2014 or 2015, a transportation economist warns.  The expansion of U.S. manufacturing is buoying freight shipping in the U.S. this year despite weak imports, said Noel Perry, senior consultant with FTR Associates.  Truckload volume should grow 2% to 3% year-over-year for the next two years, but won’t climb back to the level of the pre-recession peak, Perry said. Read more here.
 

(International Freighting Weekly)

Increase in rates a reaction to lines cutting services

Transpacific box freight rates have continued to creep up in the past week. The World Container Index and the Shanghai Containerised Freight Index’s China-US West coast prices have both moved back above $1,500 per day, while Drewry’s Hong Kong-Los Angeles rate has also taken an upward turn.

The WCI reported a transpacific rate of $1,531 per feu, up $77 from the week before. This was a bigger jump than the $6 improvement in the SCFI’s price for this route, which closed at $1,500 per feu. Read more here.
 

(DC Velocity – Mark B. Solomon)

Several of the nation’s top less-than-truckload (LTL) carriers, fresh from announcing rate increases of nearly 7% on their non-contract traffic, are prepared to impose another round of rate hikes in February 2012, according to a top executive at a firm that advises shippers on spend management issues.

John Haber, executive vice president of transportation for Atlanta-based NPI, said he’s been told by reliable sources at several LTL carriers to expect another round of general rate increases in February. That would be about six months after the most recent cycle of increases, most of which went into effect at the beginning of August. The one exception is FedEx Freight, the LTL unit of FedEx Corp. and the nation’s largest LTL carrier, which today announced a 6.75% increase, effective Sept. 6.

Haber, whose firm represents about 300 shippers of varying sizes, said he’s been told that the 2012 increases would likely fall in the 5% to 6%, less than the 6.9% rate increases announced by UPS Freight, ABF Freight System Inc., YRC Worldwide Inc., and Con-way Freight or the 6.75% increase from FedEx Freight. Read more here.
 

(Wall Street Jouranal – Melodie Warner)

FedEx Corp.’s FedEx Freight unit will implement a 6.8% general rate increase, effective Sept. 6, although the fuel surcharge will remain unchanged.

The rate increase applies to FedEx Freight shipments in the contiguous U.S. and Canada, and the U.S. portion of shipments between the U.S. and Mexico. The company had raised its ground and home-delivery services by an average of 4.9% on Jan. 3.

Starting this month, rival United Parcel Service Inc.’s (UPS) freight division is raising average noncontractual shipping rates in North America by 6.9%, as the industry copes with rapidly rising fuel costs. Read more here.
 

(Export Development Canada – Peter G. Hall)

There’s a lot of talk about inflation these days. Too much, perhaps. But there’s at least one place that prices don’t seem to be flexing their muscles: ocean freight rates. That might make some sense from a global demand perspective, but not when sky-high fuel prices are considered. What’s going on?

A key barometer of global ocean shipping is the Baltic Dry Index (BDI). It is a trusted compilation of the price of moving key raw materials by sea, tracking major sea routes and various vessel sizes on a daily basis. The Index reflects the state of balance between the demand for bulk shipping capacity and the supply of available ships. Another key indicator is the HARPEX, an index that performs the same function for the ocean-going container freight industry. What are these indexes saying? Read more or watch the video here.
 

(MarineLink.com)

The scene is being set for what looks like another boisterous year for the sector. What, if any, lessons have been learnt?

The basic education of school-children used to revolve around the Three R’s of reading, writing and arithmetic. It seems that the container syllabus is currently following a similar mantra. The 3 R’s of Containerisation = rates, reductions, recklessness.

Having last year successfully overturned the heavy losses of 2009; it looks increasingly likely that carriers will be once again flirting with the red ink come the end of this year.

In December, Drewry forecast that container shipping industry-wide profits will be reduced to $7-8 billion this year, down from the $17 billion bonanza of 2010. However, ill-discipline on rates and capacity management, combined with escalating operating costs means that Drewry now thinks that many carriers will struggle to break even.

The warning signs were there in the fourth quarter of last year as carriers were unable to sustain the upward momentum in profits of the first three quarters of 2010 as higher costs and some oversupply of tonnage (reducing load factors) kicked in. The erosion in freight rates has continued in the first three months of 2011, which unless checked very shortly could lead to losses at a number of lines at least in the short-term. Drewry’s quarterly Container Forecaster projects that east-west freight rates excluding fuel will fall by 13.2% in 2011. Read more here.

(Transport Topics)

FedEx Corp. said Friday it would raise shipping rates for its Ground and Home Delivery units by a net average of 4.9%, effective Jan. 3.

Rates will actually increase an average of 5.9%, but FedEx will also adjust the threshold at which the fuel surcharge begins, reducing it by one percentage point, the carrier said in a statement. Read more here.

Rate change information is available from the carrier at here.