Issue link: https://jocdigital.uberflip.com/i/597636
www.joc.com THE JOURNAL OF COMMERCE 49 JOC By the Numbers ■ IPI ● Growth Rate 80 90 100 110 120 130 -40% -30% -20% -10% 0% 10% 10/30/15 10/31/14 Source: Economic Cycle Research Institute, www.businesscycle.com JOC–ECRI INDUSTRIAL PRICE INDEX* n The JOC-ECRI Industrial Price Index was developed by the Economic Cycle Research Institute and is a leading indicator of inflation based on a broad assortment of raw materials used in industrial production. The IPI growth rate compares the latest week's index with the IPI's average over the past year. 17th WEEK IN DOUBLE-DIGIT INDEX: The JOC-ECRI industrial price index for the week ending Oct. 30, 2015, sequentially declined 1.4188 points to 85.6234. This was the worst weekly index since the week ending July 17, 2009, when it stood at 82.8288. The JOC-ECRI IPI negative growth rate for the week ending Oct. 30, 201,5 sequentially declined 1.4413 percentage points to negative 27.9168 percent. A positive growth rate was last seen 59 weeks ago in the week ending Sept. 12, 2014.. ■ Rate per 40-foot box $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 -75% -50% -25% 0% 25% 50% Year-over-year Week-over-week 11/2/15 11/3/14 PERCENT CHANGE: ● Year-over-year ● Week-to-week DREWRY CONTAINER RATE BENCHMARK n The Hong Kong-Los Angeles benchmark is based on Drewry Shipping Consultants' research and derived from NVOCCs. The rate is in dollars and based on a full 40-foot containerload, excluding terminal-handling charges in Hong Kong. The Nov. 2, 2015, average spot market rate from Hong Kong to Los Angeles was $1,218 per FEU, remaining flat with the week before, matching the 2015 year-to-date low of $1,218 per FEU first reached in last three weeks in July. The Nov. 2 average spot rate was $657 or 35.1 percent less than the same period last year, and $1,036 or 46 percent below the year-to-date high of $2,253 per FEU reached three consecutive weeks in February. The Nov. 2 average spot rate was $1,189 or 49.4 percent below the 2014 year-end spot rate/2014 high of $2,407 per FEU; and $1,663 or 57.7 percent below the Drewry benchmark record high of $2,880 per FEU of Aug. 6, 2012. Source: Drewry's Container Freight Rate Insight, www.drewry.co.uk ADVERTISERS AirBridge Cargo, www.airbridgecargo.com .................39 Canadian Pacific Railway, www.cpr.ca/logistics ...................................................55 CenterPoint, www.centerpoint.com ............................47 C.H. Robinson, www.accelerateyouradvantage.com ............................ 37 Cosco, www.cosco-usa.com ..........................................2 Direct ChassisLink Inc., www.dcli.com .......................26 Georgia Foreign Trade Conference, www.gaforeigntrade.com ........................................... 15 HAROPA, www.haropa-solutions.com ..........................17 "K" Line, www.kline.com ...........................................45 Mediterranean Shipping Co., www.msc.com ...............5 MOL, www.countonmol.com ......................................56 Port of Long Beach, www.polb.com/subscribe ...........................................43 Port of Mobile, www.asdd.com ..................................29 Werner, www.werner.com ..........................................23 XPOLogistics, www.xpo.com ...................................... 19 Yang Ming Line, www.yangming.com ........................ 41 ■ Average U.S. IMC highway yield ● Month to month percent change $1,300 $1,350 $1,400 $1,450 $1,500 $1,550 -5% -3% -1% 1% 3$ 5$ M A M F J 2013 D N O S A J J M 2012 ■ Drewry East-West Air Freight Price Index: May 2012 = 100 ● Average $ rate per kilogram 80 95 110 125 140 $2.00 $2.50 $3.00 $3.50 $4.00 S A J J M A M F J'15 D N O S Nov 2014 120.8 May 2012 100.0 June 2015 88.3 High: Base: Low: n This index is a weighted average of all-in air freight "buy rates" paid by forwarders to airlines for standard deferred airport-to-airport air freight services on 21 major east-west routes for cargoes above 1,000 kilograms. Rates are expressed in U.S. dollar per kilogram and include three components: the base rate, the fuel surcharge and the security surcharge. They exclude door delivery costs. The September 2015 Drewry East-West Air Freight Price Index was 99.1 points, 4.8 points above August although 4.5 points below September 2014, and 21.7 points below the 120.8 November 2014 record high index. Drewry calculated the August average air freight rate was $3.22 per kilogram, 15 cents above August and again rising above the $3.00 barrier previously crossed in May, June and July, although 15 cents below September 2014. Drewry expects strengthened pricing in October and November for peak season, although restrained as bellyhold capacity is rising with expansion of the passenger fleet. DREWRY'S EAST-WEST AIR FREIGHT PRICE INDEX Source: Drewry Sea & Air Shipper Insight, www.drewry.co.uk n August 2015 U.S. retail sales gained 0.8 percent year- over-year while inventories stockpiled 4.5 percent. Sequentially, August U.S. retail sales slipped 0.2 percent while inventories rose 0.4 percent. Retail inventories at the end of August were estimated to total $566.2 billion, with sales estimated at $403.4 billion for a total inventory to sales ratio of 1.40. U.S. RETAIL INVENTORY-TO-SALES RATIO* 1.1 1.2 1.3 1.4 1.5 1.6 JAN 2015 JAN 2014 JAN 2013 JAN 2012 JAN 2011 JAN 2010 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2010 2011 2012 2013 2014 2015 *Not seasonally adjusted. • Source: Retail Indicators Branch, U.S. Census Bureau, U.S. Department of Commerce, www.census.gov/mtis