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August 6 2018

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60 The Journal of Commerce | August 6 2018 www.joc.com JOC By the Numbers Advertisers Cosco Shipping, www.cosco.usa.com ............................. 2 Georgia Southern University Leadership Symposium, www.georgiasouthern.edu/leadershipsymposium ... 35 IANA Intermodal Expo 2018, www.intermodalexpo.com .............................................. 15 Moran, www.morantug.com ............................................ 57 MTC Logistics, www.mtccold.com .................................. 49 Northwest Seaport Alliance, www.nwseaportalliance.com/easy ................................ 25 Ocean Network Express, www.one-line.com ............... 21 PhilaPort, www.philaport.com ....................................... 29 Port of Baltimore, www.marylandports.com ............... 58 Port of Boston, www.theportofboston.com ................. 28 Port of Prince Rupert, www.rupertport.com ................ 23 Port of Virginia, www.portofvirginia.com ...................... 63 Ports America Chesapeake, www.pachesapeake.com ................................................. 42 South Carolina Ports, www.scspa.com/supplychainauthority ........................ 64 Tradepoint Atlantic, www.tradepointatlantic.com ..... 52 Yang Ming Line, www.yangming.com .............................. 9 JOC-ECRI Industrial Price Index US-China spot rates sink year over year Source: Economic Cycle Research Institute Source: Freightos © 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 20, 2018, set a new year- to-date low of 106.2 as the index fell 0.72 points from the prior week. The rate has fallen for the last six weeks and is 9.62 points below the 2018 high of 115.82 set Jan. 26. Year-over-year percent change in US-China spot rates per FEU China's ban on waste imports has kept backhaul trans-Pacific spot shipping rates negative year over year in 2018, and the brewing trade war is likely to sustain that downward pressure, as the year-over-year declines grew greater in late June as uncertainty mounted. The declines have since narrowed, in a possible indication shippers are rushing shipments, fearing Chinese retaliation to the $200 billion in tari˜s the United States unveiled in July. ■ IPI 90 95 100 105 110 115 120 7/20/2018 7/21/2017 -60% -40% -20% 0% 20% 40% 60% 80% 100% 120% Jul-18 Jun-18 May-18 Apr-18 Mar-18 Feb-18 Jan-18 Dec-17 Nov-17 Oct-17 Sep-17 Aug-17 Jul-17 Jun-17 May-17 Apr-17 Mar-17 Feb-17 Jan-17 ■ US West Coast to China Rate ■ US East Coast to China Rate 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 FROM NEW YEAR-TO-DATE HIGH: The July 23, 2018, average spot market rate from Hong Kong to Los Angeles of $1,602 was down 8.9 percent or $156 from the prior week. The July 23, 2018, level is up $431 or 36.8 percent year over year. The July 23, 2018, average spot rate was $156 or 8.9 percent below the calendar 2018 high of $1,758 per FEU set the prior week, while $1,278 or 44.4 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% 7/23/18 7/24/17 PERCENT CHANGE: ● Year-over-year ● Week-to-week High: $2,880 8/6/12 Low: $623 4/25/16 China tari-s target US ag exports Share of commodity groups in 2017 for $34 billion in Chinese tari˜s that took e˜ect July 6 The trade war between the United States and China may have just begun, but it is clear that one of the biggest losers will be US farmers. Not only do agriculture goods make up the majority of the tari˜s that China levied on imports from the United States July 6, US tari˜s on imports from China will make agriculture equipment more expensive. Some of the imports that the US put tari˜s on include dairy machinery, chicken incubators, and various tractors and equipment for harvesting agriculture goods. Source: IHS Markit © 2018 IHS Markit Vehicles and Parts Tobacco Foodstu˜s Vegetable Products Animal Products Textiles

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