The Coalition of New England Companies for Trade (CONECT) issued an advisory Thursday evening regarding a possible West Coast Trade Disruption.
On Thursday 7/3/14 the Bureau of Labor Statistics released their latest “Employment Situation Summary”. For the month of June, total nonfarm payroll employment witnessed an increase of 288,000.
“Transportation and warehousing employment increased by 17,000 in June.” Over the prior 12 months, this industry has averaged an additional 11,000 jobs per month.
Please note we are currently seeing congestion and delays at the Los Angeles and Long Beach ports. The port congestion, coupled with equipment shortages, is resulting in delays of 7 to 10 days or more for containers destined to move inland on rail.
Institute for Supply Managment (ISM) Manufacturing Report on Business:
Economic activity in the manufacturing sector continued to climb in June for the 13th consecutive month:
Overland Park, Kan., July 1, 2014 – For the fourth consecutive year, Ingram’s business magazine named MIQ Logistics as one of the Kansas City area’s top 100 privately-held companies. MIQ Logistics consistently has placed in the upper 40 percent in the publication’s annual survey of revenue, headcount and number of locations.
In follow up to MIQ’s Trade Alert of May 27, 2014; the PMA / ILWU the current labor contract is set to expire on July 1, 2014. No one expects a renewed contract agreement prior to July 1. It is important to note that from the beginning of the contract talks on May 12, 2014, BOTH sides have said that they are committed to reaching an agreement without any labor disruption. So unified have they been on this message, when there was a rumor that the talks had broken down on June 4, 2014 a joint press release was immediately issued reaffirming their mutual commitment to working through an agreement without any labor disruptions.
“May’s increase in the LEI, the fourth consecutive one, was broad based,” said Ataman Ozyildirim, Economist at The Conference Board. “Housing permits held the index back slightly but the LEI still points to an expanding economy and its pace may even pick up in the second half of the year.”
“Recent data suggest the economy is finally moving up from a 2 percent growth trend to a more robust expansion,” said Ken Goldstein, Economist at The Conference Board. “The CEI shows the pace of economic activity continued to gain traction in May, while the trend in the LEI remains positive. Going forward, the biggest challenge is to sustain the rise in income growth which will drive consumption.”
FedEx Corp. said it reported to U.S. authorities possible bribes to government officials in Kenya, according to a report Tuesday by the Wall Street Journal.
On May 12, the PMA (the negotiating body for the west coast marine terminal operators) and the ILWU (the west coast longshore union) began 2014 contract negotiations in San Francisco. Each side has laid out their starting demands most of which will either be settled quickly or completely dismissed depending on merit by both parties. The ILWU indicated that they want a two year contract while the PMA prefers a six year contract but have indicated they could concede to a minimum contract term of no less than three years.