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Trade

OAKLAND, CA, Aug. 27, 2013 (Press Release) - After months of uneven demand and gradually eroding freight rates in the U.S.-Asia trade lane, container shipping lines say it is time to begin reversing the trend.

Member carriers in the Transpacific Stabilization Agreement (TSA) Westbound section have announced plans to raise freight rates, for all commodities and from all U.S. origin points, by at least US$100 per 40-foot container (FEU) by no later than October 1, 2013. A number of TSA-Westbound lines have already filed individual increases across the board or in in key market segments, to take effect during September, and those will go forward as scheduled; other members are looking to an October 1 effective date.

TSA Westbound executive administrator Brian M. Conrad said there is an urgent need to begin rate restoration efforts in anticipation of fourth quarter cargo growth. "Rates have drifted down even more than usual during the typical summer slack period, to unsustainable levels," Conrad explained. "Not only are we headed into the busiest time of year for the trade, but we are also seeing signs in the market that U.S. exports to Asia are poised for recovery in coming months."

Conrad stressed that lines view the $100 per FEU general rate increase (GRI) amount as a minimum, given current rate levels. "Anytime the lines undertake a GRI, they are mindful of the price sensitivity for many westbound cargoes and the need for an incremental approach in restoring rates," he said. "At the same time we need to be clear that the recommended GRI will not, by itself, raise rates to levels that make an adequate contribution to round trip revenue."

While the GRI is voluntary and will be implemented by lines individually according to their specific needs at this time, Conrad said transpacific carriers remain under considerable financial pressure in the current environment and will be looking at further opportunities for revenue recovery in late 2013 and early 2014.

TSA is a research and discussion forum of major container shipping lines serving the trade from Asia to ports and inland points in the U.S.

TSA-Westbound Members:

APL Ltd.

China Shipping Container Lines

CMA-CGM

COSCO Container Lines, Ltd.

Evergreen Line

Hanjin Shipping Co., Ltd.

Hapag-Lloyd AG

Hyundai Merchant Marine Co., Ltd.

Kawasaki Kisen Kaisha, Ltd. (K Line)

Maersk Line

Mediterranean Shipping Co.

Nippon Yusen Kaisha (N.Y.K. Line)

Orient Overseas Container Line, Ltd.

Yangming Marine Transport Corp.

Zim Integrated Shipping Services

US-Asia containers rates on the rise

Posted in: Logistics 09/20/2013 - 16:51

OAKLAND, CA, Aug. 27, 2013 (Press Release) - After months of uneven demand and gradually eroding freight rates in the U.S.-Asia trade lane, container shipping lines say it is time to begin reversing the trend.

Member carriers in the Transpacific Stabilization Agreement (TSA) Westbound section have announced plans to raise freight rates, for all commodities and from all U.S. origin points, by at least US$100 per 40-foot container (FEU) by no later than October 1, 2013. A number of TSA-Westbound lines have already filed individual increases across the board or in in key market segments, to take effect during September, and those will go forward as scheduled; other members are looking to an October 1 effective date.

TSA Westbound executive administrator Brian M. Conrad said there is an urgent need to begin rate restoration efforts in anticipation of fourth quarter cargo growth. "Rates have drifted down even more than usual during the typical summer slack period, to unsustainable levels," Conrad explained. "Not only are we headed into the busiest time of year for the trade, but we are also seeing signs in the market that U.S. exports to Asia are poised for recovery in coming months."

Conrad stressed that lines view the $100 per FEU general rate increase (GRI) amount as a minimum, given current rate levels. "Anytime the lines undertake a GRI, they are mindful of the price sensitivity for many westbound cargoes and the need for an incremental approach in restoring rates," he said. "At the same time we need to be clear that the recommended GRI will not, by itself, raise rates to levels that make an adequate contribution to round trip revenue."

While the GRI is voluntary and will be implemented by lines individually according to their specific needs at this time, Conrad said transpacific carriers remain under considerable financial pressure in the current environment and will be looking at further opportunities for revenue recovery in late 2013 and early 2014.

TSA is a research and discussion forum of major container shipping lines serving the trade from Asia to ports and inland points in the U.S.

TSA-Westbound Members:

APL Ltd.

China Shipping Container Lines

CMA-CGM

COSCO Container Lines, Ltd.

Evergreen Line

Hanjin Shipping Co., Ltd.

Hapag-Lloyd AG

Hyundai Merchant Marine Co., Ltd.

Kawasaki Kisen Kaisha, Ltd. (K Line)

Maersk Line

Mediterranean Shipping Co.

Nippon Yusen Kaisha (N.Y.K. Line)

Orient Overseas Container Line, Ltd.

Yangming Marine Transport Corp.

Zim Integrated Shipping Services

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Genesee & Wyoming reported pulp and paper traffic in June was up 6.4% to 13,909 carloads compared with a year ago and reflecting the combination of the company with RailAmerica. Lumber and forest products volume in June was 0.7% higher to 10,781 carloads.

For second quarter, pulp and paper carloads at 41,372 carloads were 7.8% higher than in 2012. Lumber and forest products volume was 8% higher to 34,506 carloads. G&W's total traffic in June was up 3.7% and for second quarter was 6.7% higher.

Total North American forest products rail traffic, including pulp and paper and lumber and wood products, was 4.2% higher in the week ending July 6. Forest products traffic through 27 weeks of 2013 at 503,313 carloads was 1.4% higher than the same period in 2012, according to the Assn of American Railroads.

Pulp and paper traffic on the Genesee & Wyoming jumps 6.4% in June

Posted in: Logistics 07/26/2013 - 07:11

Genesee & Wyoming reported pulp and paper traffic in June was up 6.4% to 13,909 carloads compared with a year ago and reflecting the combination of the company with RailAmerica. Lumber and forest products volume in June was 0.7% higher to 10,781 carloads.

For second quarter, pulp and paper carloads at 41,372 carloads were 7.8% higher than in 2012. Lumber and forest products volume was 8% higher to 34,506 carloads. G&W's total traffic in June was up 3.7% and for second quarter was 6.7% higher.

Total North American forest products rail traffic, including pulp and paper and lumber and wood products, was 4.2% higher in the week ending July 6. Forest products traffic through 27 weeks of 2013 at 503,313 carloads was 1.4% higher than the same period in 2012, according to the Assn of American Railroads.

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Antwerp - The port of Antwerp has signed a collaboration agreement with the Brazilian state of Sao Paulo aimed at further strengthening the good trade relations with that country. The agreement was signed today by Luc Arnouts, Chief Commercial Officer of Antwerp Port Authority, and Mr. Saulo de Castro Abreu Filho, Secretary of State for Transport and Logistics of Sao Paulo. Antwerp is already the market leader in trade between South America and Europe.

The ceremony was held on the occasion of Intermodal South America, an international trade exhibition with the focus on freight transport, logistics and foreign trade. The port of Antwerp is represented at this event by the Port Authority and various private sector players.

Brazil is a country with enormous potential that is expected to gain in significance in future, and the Antwerp port community is keen to further develop relations with this important trading partner.

The federal state of Sao Paulo for its part is home to Santos, the largest port in Latin America, along with Sao Sebastio, a port with large expansion plans. The agreement that has just been signed runs until the end of 2016. It fits in with Antwerp’s “supply chain approach” in which the port acts as a link in the overall supply chain, enabling customers at either end to reach their own customers quickly and efficiently, whether from Antwerp to Brazil or vice-versa.

CCO Luc Arnouts expects container freight in particular to experience strong growth: “Containers already make up 70% of the total freight volume of around 7 million tonnes annually, fairly evenly divided between imports and exports. And when it comes to container trade between Europe and South America, Antwerp is the market leader in the Hamburg – Le Havre range. In the case of Brazil the market share is as much as 45%.”

Within the Port Authority, Walter Van Mulders is responsible for development of trade with Brazil, for which he collaborates closely with Henrique Machado Rabelo, the port of Antwerp’s permanent representative in Brazil. In addition the port has two other representatives to cover Brazil and South America.

In the meantime, the port of Antwerp’s efforts towards sustainability have not gone unnoticed in Brazil. Thanks in part to the Environmental Award that it won recently during the World Ports & Trade Summit in Abu Dhabi, Antwerp has now been asked to help with the sustainable development of ports in Sao Paulo.

The excellent trade relations with Brazil have already led to various agreements made by APEC-Antwerp/Flanders Port Training Center, a subsidiary of the Port Authority, for training Brazilian port professionals. These include an agreement with SEP, the Secretaria Especial de Portos da Presidencia da Republica.

Market leader Antwerp to collaborate even more intensively with Brazil

Posted in: Logistics 04/02/2013 - 20:00

Antwerp - The port of Antwerp has signed a collaboration agreement with the Brazilian state of Sao Paulo aimed at further strengthening the good trade relations with that country. The agreement was signed today by Luc Arnouts, Chief Commercial Officer of Antwerp Port Authority, and Mr. Saulo de Castro Abreu Filho, Secretary of State for Transport and Logistics of Sao Paulo. Antwerp is already the market leader in trade between South America and Europe.

The ceremony was held on the occasion of Intermodal South America, an international trade exhibition with the focus on freight transport, logistics and foreign trade. The port of Antwerp is represented at this event by the Port Authority and various private sector players.

Brazil is a country with enormous potential that is expected to gain in significance in future, and the Antwerp port community is keen to further develop relations with this important trading partner.

The federal state of Sao Paulo for its part is home to Santos, the largest port in Latin America, along with Sao Sebastio, a port with large expansion plans. The agreement that has just been signed runs until the end of 2016. It fits in with Antwerp’s “supply chain approach” in which the port acts as a link in the overall supply chain, enabling customers at either end to reach their own customers quickly and efficiently, whether from Antwerp to Brazil or vice-versa.

CCO Luc Arnouts expects container freight in particular to experience strong growth: “Containers already make up 70% of the total freight volume of around 7 million tonnes annually, fairly evenly divided between imports and exports. And when it comes to container trade between Europe and South America, Antwerp is the market leader in the Hamburg – Le Havre range. In the case of Brazil the market share is as much as 45%.”

Within the Port Authority, Walter Van Mulders is responsible for development of trade with Brazil, for which he collaborates closely with Henrique Machado Rabelo, the port of Antwerp’s permanent representative in Brazil. In addition the port has two other representatives to cover Brazil and South America.

In the meantime, the port of Antwerp’s efforts towards sustainability have not gone unnoticed in Brazil. Thanks in part to the Environmental Award that it won recently during the World Ports & Trade Summit in Abu Dhabi, Antwerp has now been asked to help with the sustainable development of ports in Sao Paulo.

The excellent trade relations with Brazil have already led to various agreements made by APEC-Antwerp/Flanders Port Training Center, a subsidiary of the Port Authority, for training Brazilian port professionals. These include an agreement with SEP, the Secretaria Especial de Portos da Presidencia da Republica.

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SAO PAULO, Jan. 11, 2013 (RISI) -Brazil's Eldorado shipped its first pulp batches this week through Santos port, in São Paulo state, located around 800 km from its Três Lagoas 1.5 million tonnes/yr pulp mill. The company stated that 2,500 tonnes of bleached eucalyptus kraft (BEK) pulp will be delivered to Mobile, AL, in the United States.

"We will produce 1.4 million tonnes of pulp in 2013 and 90% of that volume will be exported through Santos," Eldorado said in a statement.

Santos port authorities believe that Eldorado's operation will boost the pulp and paper share at the port. In 2013, 1.815 million tonnes of pulp and paper were exported from Santos, and this number may be almost doubled with Eldorado's shipments this year. According to port data, in the past three years pulp and paper export values were stable, moving from $1.016 million in 2010 (12 months) to $945,757 in 2012 (Jan.-Nov.).

The biggest pulp-specialized port in Brazil, Portocel, controlled by Fibria and Cenibra and located in Espírito Santo state, shipped 5.6 million tonnes of pulp in 2010.

Eldorado exports first 2,500 tonnes of pulp through Santos port

Posted in: Logistics 01/11/2013 - 02:57

SAO PAULO, Jan. 11, 2013 (RISI) -Brazil's Eldorado shipped its first pulp batches this week through Santos port, in São Paulo state, located around 800 km from its Três Lagoas 1.5 million tonnes/yr pulp mill. The company stated that 2,500 tonnes of bleached eucalyptus kraft (BEK) pulp will be delivered to Mobile, AL, in the United States.

"We will produce 1.4 million tonnes of pulp in 2013 and 90% of that volume will be exported through Santos," Eldorado said in a statement.

Santos port authorities believe that Eldorado's operation will boost the pulp and paper share at the port. In 2013, 1.815 million tonnes of pulp and paper were exported from Santos, and this number may be almost doubled with Eldorado's shipments this year. According to port data, in the past three years pulp and paper export values were stable, moving from $1.016 million in 2010 (12 months) to $945,757 in 2012 (Jan.-Nov.).

The biggest pulp-specialized port in Brazil, Portocel, controlled by Fibria and Cenibra and located in Espírito Santo state, shipped 5.6 million tonnes of pulp in 2010.

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BRUSSELS, Nov. 16, 2012 ((From the web)) -Proposed European Union infrastructure spending of €50 billion (US$63.8bn) will directly affect the continent's shipping, according to European Commissioner for Transport Siim Kallas.

Kallas told our sister publication Lloyd's List that the Connecting Europe Facility (CEF) would help shipping to meet "the modernisation challenge", both by stimulating the shortsea sector and by modernising its ports.

"Tapping the significant potential of shortsea shipping requires a better integration of ports in the intra-European logistic chains," said Kallas, who is also Vice-President of the European Commission.

"With CEF, national authorities and ports will have an important funding mechanism for meeting the modernisation challenge."

The proposed €50 billion CEF is, however, part of the disputed 2014-2020 EU budget.

EU spending will give ports and shortsea trades a boost

RISI is not responsible for the reliability or availability of content on external websites.

EU spending will give ports and shortsea trades a boost

Posted in: Logistics 11/16/2012 - 02:42

BRUSSELS, Nov. 16, 2012 ((From the web)) -Proposed European Union infrastructure spending of €50 billion (US$63.8bn) will directly affect the continent's shipping, according to European Commissioner for Transport Siim Kallas.

Kallas told our sister publication Lloyd's List that the Connecting Europe Facility (CEF) would help shipping to meet "the modernisation challenge", both by stimulating the shortsea sector and by modernising its ports.

"Tapping the significant potential of shortsea shipping requires a better integration of ports in the intra-European logistic chains," said Kallas, who is also Vice-President of the European Commission.

"With CEF, national authorities and ports will have an important funding mechanism for meeting the modernisation challenge."

The proposed €50 billion CEF is, however, part of the disputed 2014-2020 EU budget.

EU spending will give ports and shortsea trades a boost

RISI is not responsible for the reliability or availability of content on external websites.

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SAN FRANCISCO, Sept. 28, 2012 (RISI) -North American pulp and paper railroad freight in the week ending Sept. 22 dropped 6.9% from a year ago to 8,990 carloads, the Assn of American railroads reported. Volume through 38 weeks of 2012 at 358,737 carloads was 1.9% lower than in 2011.

Weekly pulp and paper rail freight in the US declined 6.3%, Canada fell 7.4% and Mexico plunged 39%, AAR showed.

North American lumber and wood products freight in the week at 5,796 carloads was up 1.9% from a year ago and year-to-date at 223,895 carloads was 10.5% higher.

Primary forest products volume was higher by 2.3% and 3.1% respectively.

Total North American rail freight was down 2.8% in the week and 1.3% lower year-to-date.

Weekly North American pulp and paper freight falls 6.9% from year ago

Posted in: Logistics 09/28/2012 - 09:53

SAN FRANCISCO, Sept. 28, 2012 (RISI) -North American pulp and paper railroad freight in the week ending Sept. 22 dropped 6.9% from a year ago to 8,990 carloads, the Assn of American railroads reported. Volume through 38 weeks of 2012 at 358,737 carloads was 1.9% lower than in 2011.

Weekly pulp and paper rail freight in the US declined 6.3%, Canada fell 7.4% and Mexico plunged 39%, AAR showed.

North American lumber and wood products freight in the week at 5,796 carloads was up 1.9% from a year ago and year-to-date at 223,895 carloads was 10.5% higher.

Primary forest products volume was higher by 2.3% and 3.1% respectively.

Total North American rail freight was down 2.8% in the week and 1.3% lower year-to-date.

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SAN FRANCISCO, Sept. 21, 2012 (RISI) -North American pulp and paper rail freight in the latest week ending Sept. 15 was off 0.2% from a year ago to 9,338 carloads, the Assn of American Railroads reported. Freight through 37 weeks of 2012 at 349,747 carloads was down 1.8% from 2011.

Weekly pulp and paper volume in the US was down 2.3%, Canada rose 3.8% and Mexico declined 10.3%.

North American lumber and wood products rail freight in the week at 5,925 carloads was up 3.8% and year-to-date at 218,099 carloads was 10.8% higher than a year ago.

Primary forest products freight was higher by 4.7% and 3.2% respectively.

Weekly North American pulp and paper freight off slightly as US slips 2.3%

Posted in: Logistics 09/21/2012 - 08:13

SAN FRANCISCO, Sept. 21, 2012 (RISI) -North American pulp and paper rail freight in the latest week ending Sept. 15 was off 0.2% from a year ago to 9,338 carloads, the Assn of American Railroads reported. Freight through 37 weeks of 2012 at 349,747 carloads was down 1.8% from 2011.

Weekly pulp and paper volume in the US was down 2.3%, Canada rose 3.8% and Mexico declined 10.3%.

North American lumber and wood products rail freight in the week at 5,925 carloads was up 3.8% and year-to-date at 218,099 carloads was 10.8% higher than a year ago.

Primary forest products freight was higher by 4.7% and 3.2% respectively.

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WASHINGTON DC, Aug. 29, 2012 (Press Release) -Trade using surface transportation between the United States and its North American Free Trade Agreement (NAFTA) partners, Canada and Mexico, was 6.6 percent higher in June 2012 than in June 2011, totaling $82.6 billion, unadjusted for inflation, according to the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation. Adjusted for inflation and exchange rates, the June 2012 total was $61.0 billion in 2004 dollars, up 11.0 percent from June 2011.

BTS, a part of the Research and Innovative Technology Administration, reported that the June 2012 value of U.S. surface transportation trade with Canada and Mexico rose 11.4 percent from June 2008, seven months into the recession, and 62.8 percent from June 2009, at the end of the recession. Data in the press release are not adjusted for inflation, except for monthly totals in Figure 1.

The value of U.S. surface transportation trade with Canada and Mexico in June increased by 79.0 percent compared to June 2002, a period of 10 years. Imports in June were up 69.7 percent since June 2002, while exports were up 90.8 percent.

Surface transportation includes freight movements by truck, rail, pipeline, mail, Foreign Trade Zones, and other modes of transport. In June, 87.7 percent of U.S. trade by value with Canada and Mexico moved via land, 8.3 percent moved by vessel, and 4.0 percent moved by air.

The value of U.S. surface transportation trade with Canada and Mexico decreased 1.4 percent in June 2012 from May 2012. Month-to-month changes can be affected by seasonal variations and other factors.

U.S. trade by surface transportation with Mexico has increased at a faster pace than trade with Canada. U.S.-Canada and U.S.-Mexico surface transportation trade in June 2012 both increased compared to June 2011 with U.S.-Canada trade reaching $48.4 billion, a 5.0 percent increase, and U.S.-Mexico trade reaching $34.2 billion, an 8.8 percent increase.

In June, Michigan led all states in surface trade with Canada, at $6.5 billion, a 4.5 percent increase from June 2011 (Table 5). Of the top 10 states by value, California had the largest percentage increase over June 2011, at 55.1 percent. The largest commodity that is traded between California and Canada, vehicles, increased 171.6 percent from June 2011 to June 2012 to $1.66 billion.

The top commodity category transported between the U.S. and Canada by surface modes of transportation in June was vehicles, valued at $9.9 billion.

Texas continued to lead all states in surface trade with Mexico at $12.4 billion, an 11.0 percent increase from June 2011. Of the top 10 states by value, Tennessee had the biggest percentage increase, 21.1 percent, primarily because of a 31.0 percent increase from June 2011 in trade in computer related machinery. The top commodity category transported between the U.S. and Mexico by surface modes of transportation in June was electrical machinery with $7.0 billion in trade.

NAFTA surface trade rose 6.6% in June from 2011

Posted in: Logistics 08/28/2012 - 16:09

WASHINGTON DC, Aug. 29, 2012 (Press Release) -Trade using surface transportation between the United States and its North American Free Trade Agreement (NAFTA) partners, Canada and Mexico, was 6.6 percent higher in June 2012 than in June 2011, totaling $82.6 billion, unadjusted for inflation, according to the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation. Adjusted for inflation and exchange rates, the June 2012 total was $61.0 billion in 2004 dollars, up 11.0 percent from June 2011.

BTS, a part of the Research and Innovative Technology Administration, reported that the June 2012 value of U.S. surface transportation trade with Canada and Mexico rose 11.4 percent from June 2008, seven months into the recession, and 62.8 percent from June 2009, at the end of the recession. Data in the press release are not adjusted for inflation, except for monthly totals in Figure 1.

The value of U.S. surface transportation trade with Canada and Mexico in June increased by 79.0 percent compared to June 2002, a period of 10 years. Imports in June were up 69.7 percent since June 2002, while exports were up 90.8 percent.

Surface transportation includes freight movements by truck, rail, pipeline, mail, Foreign Trade Zones, and other modes of transport. In June, 87.7 percent of U.S. trade by value with Canada and Mexico moved via land, 8.3 percent moved by vessel, and 4.0 percent moved by air.

The value of U.S. surface transportation trade with Canada and Mexico decreased 1.4 percent in June 2012 from May 2012. Month-to-month changes can be affected by seasonal variations and other factors.

U.S. trade by surface transportation with Mexico has increased at a faster pace than trade with Canada. U.S.-Canada and U.S.-Mexico surface transportation trade in June 2012 both increased compared to June 2011 with U.S.-Canada trade reaching $48.4 billion, a 5.0 percent increase, and U.S.-Mexico trade reaching $34.2 billion, an 8.8 percent increase.

In June, Michigan led all states in surface trade with Canada, at $6.5 billion, a 4.5 percent increase from June 2011 (Table 5). Of the top 10 states by value, California had the largest percentage increase over June 2011, at 55.1 percent. The largest commodity that is traded between California and Canada, vehicles, increased 171.6 percent from June 2011 to June 2012 to $1.66 billion.

The top commodity category transported between the U.S. and Canada by surface modes of transportation in June was vehicles, valued at $9.9 billion.

Texas continued to lead all states in surface trade with Mexico at $12.4 billion, an 11.0 percent increase from June 2011. Of the top 10 states by value, Tennessee had the biggest percentage increase, 21.1 percent, primarily because of a 31.0 percent increase from June 2011 in trade in computer related machinery. The top commodity category transported between the U.S. and Mexico by surface modes of transportation in June was electrical machinery with $7.0 billion in trade.

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