North American shipment volume and expenditures dropped for the second month in a row as the summer slowdown hit. The drop in freight spending was sharper than expected, however, as truck spot prices fell lower due to abundant capacity. The decline in shipments did not follow the typical upward movement in August, but given the weak level of new manufacturing orders placed in June and July it is not unanticipated. GDP growth was strong overall during the first half of the year, with a 3.7 percent growth rate in the second quarter and a 0.6 percent growth rate in the first.
News / Brian Higgs
Import cargo volume at the nation’s major retail container ports is expected to increase 1.2 percent this month over the same time last year as retailers head toward the holiday season, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.
“After supply chain worries earlier this year, inventories are plentiful this fall,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Shoppers should have no worries about finding what they’re looking for as they begin their holiday shopping.”
The U.S. Customs & Border Protection announced this week they are delaying the mandatory migration date of the Automated Commercial Environment (ACE) to February 2016. Please keep in mind these two deadlines:
- November 1, 2015 is the beginning of the transition period for using ACE for all electronic cargo release and related entry summary filing.
- February 28, 2016 is the mandatory use date of ACE for all remaining electronic portions of the CBP cargo process, as ACS will no longer be available.
Institute for Supply Management
Economic activity in the manufacturing sector expanded in August for the 32nd consecutive month, and the overall economy grew for the 75th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.
“The U.S. LEI fell slightly in July, after four months of strong gains. Despite a sharp drop in housing permits, the U.S. LEI is still pointing to moderate economic growth through the remainder of the year,” said Ataman Ozyildirim, Director of Business Cycles and Growth Research at The Conference Board. “Current conditions, measured by the coincident economic index, have been rising moderately but steadily, driven by rising employment and income, and even industrial production has improved in recent months.”
Four more fires broke out today at the industrial park where the Tianjin explosion occurred on August 12th. One fire was reported to have occurred in a logistics site for vehicles, and the other three fires were reported within the central blast area.
Also reported today was an increase to the death toll, which has now reached 116, with 60 people still missing.
American Trucking Associations
American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index increased 2.8% in July, following a revised drop of 0.4% during June. In July, the index equaled 135.0 (2000=100), the second highest level on record. The all-time high of 135.8 was reached in January 2015.
MIQ Logistics has been providing updates on the logistics situation in Tianjin, since the explosion occurred last Wednesday, August 12th. The latest reports indicate that 114 people were killed in the blast, including 39 firefighters. As of this morning at least 70 people remain unaccounted for, and at least 700 have sustained injuries from the explosion. There are additional reports regarding the concerns around both air and water contamination near the site.
In the 36 hours since MIQ’s last Supply Chain Alert, there have been many new details surfacing in the aftermath of the Tianjin explosion.
While there are many details that are still unknown, MIQ Logistics would like to report to you what we do know at this time.
North American shipment volumes and their related costs both trailed downward in July, keeping in line with the seasonal patterns of the last five years. July is
traditionally a slow month for freight as it lies between the surges of back‐to‐school and the holidays. Although both indexes are below last year’s levels at this time,
they compare quite favorably with prior years. There should be an element of caution when comparing 2015 results to 2014 since last year was the best year the
freight sector has experienced since the recession.