ETC INTERNATIONAL FREIGHT SYSTEM
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OCU Strike Puts a Crimp in LA-LB Container Growth
Bill Mongelluzzo, Associate Editor | Jan 02, 2013 5:09PM EST
West Coast container volumes in November declined 6 percent compared to November 2011, reflecting the impact the strike by office clerical workers in Los Angeles-Long Beach had on business at the ports.
Containerized imports in November were down 6 percent and exports dropped 7 percent, according to numberspublished Wednesday on the Web site of the Pacific Maritime Association.
The Office Clerical Unit of international longshore & warehouse Local 63 picketed 10 of the 14 container terminals in the Southern California port complex beginning on Nov. 27. ILWU dockworkers honored the picket lines, closing down cargo-handling at the terminals for eight days.
The strike had a noticeable impact on container volumes as port volumes had been trending upward through much of 2012. Year-to-date container volumes through November were up 2 percent. Imports increased 2 percent compared to the first 11 months of 2011, while exports were down less than 1 percent.
The Los Angeles-Long Beach port complex handles about 70 percent of the containers that move through the West Coast. A number of vessels that were scheduled to stop in Southern California on their first call inbound were diverted to Oakland.
However, those ships dropped off and took on only Northern California cargo. The vessels then proceeded to Los Angeles-Long Beach where they were idled until the ports reopened. Therefore, much of the cargo that was supposed to be handled in Southern California in late November was most likely handled in December after the strike ended.
Also, some vessels diverted to ports in Mexico and Panama. Perishable freight reportedly moved north across the border, but other containers were held at the ports and vessels on subsequent voyages retrieved them and delivered the containers to Los Angeles-Long Beach when the strike was over.
US Senate Confirms FAA Administrator, FMC Commissioner
JOC Staff | Jan 03, 2013 2:15PM EST
The U.S. Senate has confirmed the nominations of Michael P. Huerta as administrator of the Federal Aviation Administration and William P. Doyle as commissioner of the Federal Maritime Commission.
Huerta was confirmed for a five-year term as FAA administrator after the position had been vacant for more than a year, the Chicago Tribune reported. He has acted in the role since December 2011, when his predecessor, Randy Babbitt, resigned after being arrested and charged with drunk driving.
Doyle will replace Joseph E. Brennan, a former governor of Maine, according to Pennsylvania’s York Daily Record. The term will end in June, and Doyle could then be reconfirmed for a five-year term, or retain the seat until a replacement is confirmed.
The Senate also confirmed numerous nominations to the Department of Commerce, Department of Transportation, Federal Communications Commission, Federal Trade Commission, Amtrak’s board of directors and the U.S. Coast Guard.
Europe’s Manufacturing Sector Ended 2012 in Slump
JOC Staff | Jan 02, 2013 2:56PM EST
Europe’s manufacturing sector ended 2012 in a slump, with production levels and new orders decreasing further in December as demand from domestic and export markets remains low, according to business surveyor Markit Economics.
The Final Eurozone Manufacturing Purchasing Managers’ Index was at 46.1 in December, down from 46.2 in November, showing contraction for the 17th consecutive month.
Ireland was the only nation to report improved operating conditions. Downturns accelerated in Germany, Spain, Austria and Greece, but eased in France, Italy and the Netherlands.
Widespread Weakness in US Intermodal Rates
JOC Staff | Jan 02, 2013 5:16PM EST
Domestic U.S. intermodal shipping rates weakened broadly this week, reflecting the slack, post-holiday season. Of the 36 lanes tracked weekly by IDS, 32 either dropped or remained the same from the prior week, with declines seen on lanes in all four directions.
An average of West-to-East lanes dipped from $2,518 to $2,505 per all-in 53-foot door- to-door moves as quoted by railroads, while East-to-West lanes on average dropped from $1,795 to $1,779, according to IDS. An average of North-to-South lanes inched up from $1,989 to $1,991, but the South-to-North average dipped from $1,759 to $1,750.
“We continue to see the market pricing soften across the entire network,” said IDS EVP Rick LaGore. “We still see the softening as the typical softening experienced at this time of the year.”
Examples of individual lane weakness this week included:
- Atlanta to Chicago, dropping from $910 to $890.
- Charlotte to Los Angeles, dropping from $2,235 to $2,230.
- Chicago to Atlanta, dropping from $1,315 to $1,275.
- Los Angeles to Chicago, dropping from $2,380 to $2,370.
Examples of individual lanes that saw increases included:
- New Jersey to Atlanta, which rose from $920 to $935.
- New Jersey to Chicago, rising from $850 to $870.
- New Jersey to Dallas, rising from $1,905 to $1,935.
- Orlando to Chicago, rising from $750 to $775.
