In Port News 14/03/2016
Less-tnan-truckload carriers Old Dominion Freight Line Inc. and Saia Inc., which specialize in carrying goods from multiple shippers on the same truck, earlier reported accelerating demand in February after a slow January.
Logistics and transportation businesses got a healthy bump in February as import volumes through the nation’s largest ports posted records and freight shipments picked up after slowing for several months. But analysts warn the growth may only be temporary.
The Port of Los Angeles handled a February record 372,744 loaded 20-foot containers-worth of imports—a jump of 46.6% from February of last year, when West Coast ports were plagued by congestion as dockworkers completed contract terms with port operating companies after months of negotiations. Exports grew 11% to 146,488 containers.
February’s import volume in Los Angeles also was 30% higher than the same month in 2014—evidence that the strong dollar and steady consumer demand are pulling more goods from abroad. In contrast, loaded export containers at the Port of Los Angeles in February were flat compared with February in 2014. The neighboring Port of Long Beach, the nation’s second-largest container port, reported similar trends in February.
Domestic freight activity also appears to be picking up. The monthly Cass Information Systems Inc. freight index report by showed volume jumped 8.3% from January to February. Spending to ship goods also expanded 6.3%. Compared with last February, however, freight shipments were down 2.6% and expenditures fell 5.1%, according to Cass, which said the first half of 2016 would be “sluggish.”
“The robust turnaround this month signals improvement, but current economic conditions do not support a robust rebound,” the report’s author, Rosalyn Wilson, wrote, pointing to volatile energy markets and weak foreign economies.
In a statement Friday, the Port of Los Angeles said March volumes likely would be “softer” because of slowing production in China during the Lunar New Year last month. And both Los Angeles and Long Beach container volume will drop significantly relative to March of 2015, when cargo through the West Coast ports surged after a new labor contract led workers to move quickly to clear backlogs of cargo.
For now, however, many freight companies are reporting that demand to ship goods is accelerating, a trend many expect continue this spring under normal seasonal shipping patterns.
Virginia Henkels, CFO of Swift Transportation Co., the largest truckload carrier in the U.S., said that after a “slow start” to the year, the company’s measure of shipping volume increased 3% year-over-year in February.
“Our customers are not near as bearish on the overall economy or freight demands as many of the research reports or surveys that are out there,” Ms. Henkels said. “With the exception of a couple of our customers, they are all anticipating increased volumes in 2016 vs. 2015.”
Source: Wall Street Journal
