Dry Van Report: May import totals close to 2019 levels

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Import cargo quantity on the nation’s main container ports is predicted to be 22% decrease through the first half of 2023 than final yr regardless of elevated shopper spending, in keeping with the International Port Tracker report launched right now by the Nationwide Retail Federation (NRF) and Hackett Associates. NRF Vice President for Provide Chain and Customs Coverage Jonathan Gold says, “Cargo quantity is decrease than final yr, however retailers are getting into the busiest transport season of the yr bringing in vacation merchandise.” International Port Tracker has not but forecasted the entire yr, however the third quarter expectations are 5.97 million TEU, down 7.9% from the identical time final yr, and the primary 9 months of the yr ought to whole 16.48 million TEU, down 17.6% yr over yr. 

Might imports got here in very near 2019 ranges, simply 18,258 extra TEU (twenty-foot equal unit) however 19% decrease than the earlier yr. Following the surge in imports in April following the Chinese language New 12 months manufacturing shut down early within the yr, Might imports elevated by 3% sequentially. East Coast TEU volumes have been up 2% m/m, whereas the West Coast reported a 5% m/m enhance, led by the primary port for containerized imports on the Port of Los Angeles. TEU import volumes elevated by 9% m/m in Los Angeles. Gulf Coast imports decreased by 2% m/m, pushed by 5% decrease import volumes in Houston. 

The port of Los Angeles dealt with 19% of the whole TEU quantity in Might, adopted by New York (17%) and the port of Lengthy Seashore (15%), and Savannah (9%). In Los Angeles, furnishings was the primary imported commodity – quantity was up 9% m/m in Might however nonetheless 32% decrease than the earlier yr. Footwear and toy imports have been up 34% m/m and 25% m/m, respectively. The best month-to-month positive aspects for the highest 10 commodities imported nationally have been in Girls’s and Toddler put on, with 13% m/m will increase. That is undoubtedly pushed by the 6.2% enhance in births to U.S.-born moms through the pandemic. 

Market Watch

All charges cited beneath exclude gasoline surcharges except in any other case famous.

Warehouse distribution freight markets have been busy final week within the leadup to the July 4 lengthy weekend, coinciding with the earlier transport week of the month and quarter. Spot charges elevated by $0.03/mile to a mean of $1.81/mile for outbound hundreds in Ontario, Phoenix, Memphis, Joliet, Columbus, Atlanta, Harrisburg, and Elizabeth. California outbound spot charges, at $2.12/mile, have been up $0.04/mile w/w and $0.09/mile greater than in 2019. Hundreds from Los Angeles to Phoenix paid carriers $2.79/mile, $0.09/mile greater than the Might common and the best since January. Hundreds north to Stockton adopted the same development averaging $2.75/mile.

Within the logistics capital of the nation in Memphis, linehaul charges elevated for the third week to a mean of $1.93/mile, up $0.03/mile w/w. In Atlanta, spot charges elevated by $0.02/mile w/w to a mean of $1.93/mile after lowering for the three weeks prior. Hundreds from Atlanta to Orlando paid carriers $2.68/mile final week, $0.35/mile decrease than the earlier yr. Outbound hundreds in Elizabeth elevated by $0.04/mile to $1.39/mile the final week, and at $1.13/mile, hundreds to Atlanta are paying carriers $0.36/mile lower than the earlier yr. After dropping for many of June, spot charges in Chicago elevated by $0.03/mile to $1.92/mile. 

Load-to-Truck Ratio (LTR)

The final transport week of the month, quarter, and first half yr produced an uncharacteristic quantity surge within the earlier week. Load posts elevated by 22% w/w in comparison with previous years, the place pre-July 4 quantity weekly enhance is often 11%. Final week’s spot market volumes have been inside a couple of thousand a great deal of 2019, round 25% decrease than the earlier yr. Service gear posts dropped by 17% w/w, rising the dry van load-to-truck ratio (LTR) from 2.41 to three.54. 

Linehaul Spot Charges

Weekly dry van linehaul charges elevated for less than the fifth time this yr following final week’s $0.04/mile enhance. At simply over $1.72/mile, spot charges have dropped $0.25/mile for the reason that begin of the yr and are decrease by the identical quantity as final yr. Produce season usually impacts dry van charges as capability shifts to higher-paying refrigerated produce hundreds, and in a typical yr, dry van linehaul charges would enhance by $0.18/mile from mid-April to the July 4 lengthy weekend; this yr, the rise is simply $0.09/mile. In comparison with our Prime 50 lanes, which averaged $2.02/mile final week, the nationwide common was $0.30/mile decrease. 

The submit Dry Van Report: Might import totals near 2019 ranges appeared first on DAT Freight & Analytics – Weblog.

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