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July 23 2018

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July 23 2018 | The Journal of Commerce 43 www.joc.com JOC By the Numbers Advertisers AirBridgeCargo, www.airbridgecargo.com, 35 Cosco Shipping, www.cosco.usa.com, 17 CSCMP 2018 Edge Supply Chain Conference and Exhibition, www.cscmpedge.org, 9 Evergreen Line, www.evergreen-line.com, 2 FlexiVan, www.FlexiVan.com, 16 Matson, www.matson.com, 21 Milestone, www.milecorp.com, 13 Ocean Network Express, www.one-line.com, 19 Old Dominion Freight Line, www.odfl.com, 48 Port of Baltimore, www.marylandports.com, 39 Port of Long Beach, www.polb.com, 5 TOTE, www.toteinc.com, 17 Yang Ming Line, www.yangming.com, 23 JOC-ECRI Industrial Price Index China-US container trade takes off Source: Economic Cycle Research Institute Source: IHS Markit © 2018 IHS Markit © 2018 IHS Markit The JOC-ECRI Industrial Price Index was developed by the Economic Cycle Research Institute (ECRI) and is a leading indicator of inflation based on a broad assortment of raw materials used in industrial production. HITS FRESH YEAR-TO-DATE LOW: The JOC-ECRI Industrial Price Index for the week ending July 6, 2018, set a new year-to- date low of 107.76 as the index fell 1.34 points from the prior week. The rate is 8.06 points below the 2018 high of 115.82 set Jan. 26. Total laden US container trade with China Growth in US trade with China accelerated from 3.2 percent in 2016 to 3.7 percent last year for a new high of 13.5 million TEU, but several developments could slow or reverse that trend. Among those factors are China's ban on waste imports, and the tit-for-tat tariffs on trade between the two countries that escalated dramatically July 11 when the United States unveiled tariffs on $200 billion of US imports from China across a wide array of commodities. ■ IPI 90 95 100 105 110 115 120 7/6/2018 6/23/2017 12.0 12.5 13.0 13.5 14.0 2013 2014 2015 2016 2017 ■ Millions of TEU Drewry Hong Kong-Los Angeles Spot Rate Benchmark Source: Drewry Shipping Consultants © 2018 IHS Markit The rate shown here is in dollars and excludes terminal-handling charges in Hong Kong. Drewry tracks spot rates on 600-plus global lanes including Hong Kong-Los Angeles by surveying NVOCCs and also tracks contract rates on 8,000-plus+ lanes via its BCO Benchmarking Club. SLIPS: The July 9, 2018, average spot market rate from Hong Kong to Los Angeles of $1,633 was down 0.8 percent or $13 from the prior week. The July 9, 2018, level is up $362 or 28.5 percent year over year. The July 9, 2018, average spot rate was $38 or 2.3 percent below the calendar 2018 high of $1,671 per FEU of Jan. 29, while $1,247 or 43.3 percent below the Drewry benchmark record high of $2,880 per FEU of Aug. 6, 2012. ■ Rate per 40-foot box $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 -50% 0% 50% 100% 150% 7/9/18 6/26/17 PERCENT CHANGE: ● Year-over-year ● Week-to-week High: $2,880 8/6/12 Low: $623 4/25/16 China is top US trading partner Total US trade TEU market share in 2017 Underscoring the potential disruption of $200 billion in tariffs on US imports from China, on top of the $34 billion already in place, is the fact that China is the top US trading partner in terms of both imports and exports, with 38 percent of all US trade occurring with China. China accounts for 47 percent or 10.7 million TEU of US imports as a whole, and 21.9 percent or 2.7 million TEU of US exports. Source: IHS Markit © 2018 IHS Markit Vietnam Taiwan Others China South Korea Japan

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