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August 2013 Industry News

Economic Update

US Economic Chart August 2013

Institute for Supply Management (ISM) Manufacturing Report on Business:

Economic activity in the manufacturing sector bounced back in July.

  • 50 represents the dividing line between expansion and contraction for the index of the below chart; which covers the Purchasing Managers Index (PMI) and new orders.
  • The PMI reading increased to 55.4% in July, which is 4.5 percentage points higher than June’s reading of 50%.
  • New Orders increased in July by 6.4% to reach 58.3% on the index.

July 2013 Manufacturing ISM Data

Expanding Manufacturing Industries

  1. Furniture & Related Products
  2. Textile Mills
  3. Printing & Related Support Activities
  4. Paper Products
  5. Wood Products
  6. Nonmetallic Mineral Products
  7. Electrical Equipment, Appliances & Components
  8. Computer & Electronic Components
  9. Food, Beverage & Tobacco Products
  10. Primary Metals
  11. Transportation Equipment
  12. Chemical Products
  13. Fabricated Metal Products

Contracting Manufacturing Industries

  1. Plastics & Rubber Products
  2. Apparel, Leather & Allied Products
  3. Machinery
  4. Miscellaneous Manufacturing

Transportation Market Update


US Fuel Forecast July 2013

U.S. Fuel Forecast: Recent statements from the “Short Term Energy Forecast” (07/09/13)

  • “EIA’s projection, as of July 9, 2013, for the average retail price of on-highway diesel fuel for July through December 2013 is $3.81 per gallon. The projection for the average retail price in 2014 is $3.77 per gallon”.
  • “EIA expects the annual average regular gasoline retail price to decline from $3.63 per gallon in 2012 to $3.48 per gallon in 2013 and to $3.37 per gallon in 2014.”
  • “Since reaching 12.5 million bbl/d in 2005, total U.S. liquid fuel net imports including crude oil and petroleum products, have been falling.  Total net imports fell to 7.4 million bbl/d in 2012, and EIA expects net imports to declining to an average of 5.7 million bbl/d by 2014.  Similarly, the share of total U.S. consumption met by liquid fuel net imports peaked at more than 60 percent in 2005 and fell to an average of 40 percent in 2012. EIA expects the net import share to fall to continue to fall to 31 percent in 2014, which would be the lowest level since 1985.”

Monthly Transportation Indexes

Truckload Index Category Monthly Reading Previous Monthly Reading Trend Direction
American Trucking Association (SA) seasonally adjusted For-Hire Truck tonnage 125.9 125.8 + 0.1% increasing
Cass Freight Index Report (Shipments) 1.107 1.133 – 2.3% decreasing
Cass Freight Index Report (Expenditures) 2.484 2.463 + .09% increasing
Freight Transportation Services Index 114.3 113.1 + 1.2% increasing
NAFTA $98.6 billion $98.9 billion – 0.2% decreasing
Trucking Employment + 6,300 jobs – 3,000 jobs + 2.3% Increasing (YOY)

“The fact that tonnage didn’t fall back after the 2.1% surge in May is quite remarkable,” ATA Chief Economist Bob Costello said. “While housing starts were down in June, tonnage was buoyed by other areas like auto production which was very strong in June and durable-goods output, which increased 0.5% during the month according to the Federal Reserve.” “Robust auto sales also helped push retail sales higher, helping tonnage in June” he said, “The trend this year is heavy freight, like autos and energy production, is growing faster than lighter freight, which is pushing turck tonnage up.”

Global Market Update


US Import Container Forecast July 2013


Global Port Tracker expecting gains in import volumes between May and August

  • April which was the last month for which Global Port Tracker has confirmed data; shows that 1.31 million TEU were imported to the U.S. This figure is up 14.6% month-over-month.
  • May – September are all expected to see YOY percentage increases, but nothing greater than 2.2%.
  • “We are witnessing a period of import trade growth that is running more or less in sync with the U.S. economic expansion. Unfortunately, both are anemic,” – Hackett Associates Founder Ben Hackett.

Peak Season Surcharge 8/1/13:

Container Type 20′ 40′ 40′ HC 45″
TPEB Lanes $320.00 $400.00 $450.00 $506.00

*Note: The Peak Season Surcharge (PSS) charge above; while implemented by carriers on 8/1/13, the actual PSS amounts are at mitigated levels.

GRI TransPacific Eastbound 09/01/13:

Container Type 20′ 40′ 40’HC 45′
U.S. West Coast $320.00 $400.00 $450.00 $505.00
IPI / AWS $480.00 $600.00 $675.00 $760.00


Domestic & Global Economy

U.S. Fuel Forecast

Truckload Capacity & Volumes

Global Market Update