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May16, 2016

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www.joc.com THE JOURNAL OF COMMERCE 57 JOC By the Numbers ■ IPI ● Growth Rate 70 80 90 100 110 -45% -30% -15% 0% 15% 4/29/2016 5/1/2015 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. 2016 RECORD INDEX: The JOC-ECRI Industrial Price Index for the week ending April 29, 2016, sequentially gained 0.6954 point to reach the 2016 year-to-date index high of 89.4708 points, its 43rd week in double-digit index. This level is 11.0432 points above the 2016 low of 78.4275 of Jan. 22, which was the worst weekly index since the week ending May 29, 2009, when it was 78.2920. POSITIVE GROWTH RETURNS: The JOC-ECRI IPI growth rate for the week ending April 29, 2016, sequentially improved by 2.1029 percentage points, rising to 1.4042 percent growth. A positive growth rate was last seen 85 weeks ago in the week ending Sept. 12, 2014. ■ Rate per 40-foot box $0 $500 $1,000 $1,500 $2,000 -100% -50% 0% 50% 100% Year-over-year Week-over-week 5/2/16 4/13/16 PERCENT CHANGE: ● Year-over-year ● Week-to-week 8/6/12 $2,880 4/25/16 $623 High: Low: 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. $200 ABOVE RECORD LOW IN GRI BOUNCE-BACK: The May 2, 2016, average spot market rate from Hong Kong to Los Angeles was $823 per FEU, $200 or 32.1 percent above the $623 per FEU benchmark record low of the previous week. SHEDS $716 YEAR-OVER-YEAR: The May 2, 2016, average spot rate was $716 or 46.5 percent below the same period last year, and $594 or 41.9 percent below the 2016 high of $1,418 per FEU held for first three weeks in January. The May 2, 2016, level was $2,057 or 71.4 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 C.H. Robinson, www.chrobinson.com ......................... 51 Contship Italia Group, www.conshipitalia.com .............7 Cosco, www.cosco-usa.com ..........................................5 Direct ChassisLink Inc., www.dcli.com .......................47 Emirates SkyCargo, www.skycargo.com .................... 64 IANA Intermodal Expo 2016, www.intermodalexpo.com ...........................................17 Mediterranean Shipping Co., www.msc.com ..............13 MOL, www.countonmol.com ......................................63 North Carolina Ports, www.ncports.com ....................23 Philadelphia Regional Port Authority, www.philaport.com ....................................................55 Port Authority of New York and New Jersey, www.portnynj.com .....................................................33 Port Everglades, www.porteverglades.net .....................2 PortMiami, www.portmiami.biz .................................39 Port of Baltimore, www.marylandports.com .............. 37 Port of Brownsville, www.portofbrownsville.com .......49 Port of Long Beach, www.polb.com ...........................25 Port of Mobile, www.asdd.com ..................................45 Port of New Orleans, www.portno.com .....................29 Port of Prince Rupert, www.rupertport.com ................35 Port of Virginia, www.portofvirginia.com/catalystforcommerce .............43 Ports America, www.portsamerica.com ..................... 44 The Northwest Seaport Alliance, www.nwseaportalliance.com ...................................... 41 TMSA Marketing & Sales Leadership Conference, www.tmsatoday.org ................................................... 15 28th Agriculture Transportation Coalition Annual Meeting, www.agtrans.org/events ............................................. 19 Yang Ming Line, www.yangming.com ......................... 9 Yusen Logistics, www.yusen-logistics.com ..................53 ■ Average U.S. IMC highway yield ● Month to month percent change ■ Drewry East-West Air Freight Price Index: May 2012 = 100 ● Average $ rate per kilogram $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 75 80 85 90 95 100 $2.25 $2.50 $2.75 $3.00 $3.25 $3.50 M F J 2016 D N O S A J J M A M 2015 !"#$%&'() *+$& 11/2014 120.8 5/2012 100.0 2/2016 79.2 High: Base: Low: n This index is a weighted average of all-in airfreight "buy rates" paid by forwarders to airlines for standard deferred airport-to airport airfreight services on 21 major east-west routes for cargoes above 1,000 kilograms. Rates are expressed in dollar per kilogram and include three components: the base rate, the fuel surcharge and the security surcharge. They exclude door delivery costs. INCREMENTAL GAIN FROM RECORD LOW: Following four weeks in decline, the March 2016 Drewry East-West Air Freight Price Inde was 79.5 points, eking out a 0.3 point gain from the record-low February index, although tumbling 14.4 points below the March 2015 93.9 point index. The March 2016 average air freight rate was $2.58 per kilogram, slipping a penny below February and tumbling 59 cents from the March 2015 $3.17 per kilogram level. Drewry anticipates rates to temporarily improve as European and North American retailers rebuild inventories for the new season. DREWRY'S EAST-WEST AIR FREIGHT PRICE INDEX Source: Drewry Sea & Air Shipper Insight, www.drewry.co.uk

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