Issue link: https://jocdigital.uberflip.com/i/871052
www.joc.com THE JOURNAL OF COMMERCE 43 JOC By the Numbers ADVERTISERS 17th Annual Port of New York-New Jersey Port Industry Day, email: portindustryday@yahoo.com ...........................23 BNSF Railway, www.bnsf.com/pnw-tx ........................ 37 Canadian National Railway, www.cn.ca/intermodal .................................................2 Canadian Pacific Railway, www.cpr.ca .........................5 CONECT's 16th Annual Northeast Cargo Symposium, www.conect.org ......................................................... 41 Cosco Shipping, www.cosco-usa.com ......................... 27 ESP, OASYS Technology, www.oasys-esp.com ............ 48 Mediterranean Shipping, www.msc.com .................... 9 MOL, www.countonmol.com ......................................47 Port of Long Beach, www.polb.com ........................... 21 Watson Land Co., www.watsonlandcompany.com ...................................13 ■ IPI 70 80 90 100 110 8/18/2017 7/22/2016 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. RISES FOR SIXTH WEEK: The JOC-ECRI Industrial Price Index for the week ending Sept. 1, 2017, was 107.2 as the index rose 0.23 points from the prior week. This reading is 1.6612 points below the calendar 2017 high of 108.861 and 5.96 points above the year-to-date low of 102.28 set June 9. ■ Rate per 40-foot box $0 $500 $1,000 $1,500 $2,000 $2,500 -100% -50% 0% 50% 100% 150% Year-over-year Week-over-week 9/4/17 9/5/16 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. INDEX FALLS FOR SECOND WEEK: The Sept. 4, 2017, average spot market rate from Hong Kong to Los Angeles of $1,521 was down 6.2 percent from the prior week. The Sept. 4 level is up $222 or 12.7 percent year over year. The Sept. 4, 2017, average spot rate was $840 or 35.6 percent below the calendar 2017 high of $2,361 per FEU of Jan. 2, while $1,359 or 47.2 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 -30% -20% -10% 0% 10% 20% 30% 40% 50% 2016 2015 2014 2013 2012 2011 ■ Mexico ■ Canada China Others Italy Indonesia Malaysia Vietnam 12.8% 4.3% 20.3% 3.1% 57.6% 1.8% Mexico and Canada are also top suppliers of furniture to the US, but they are not seen in the maritime data as the bulk of the North American Free Trade Agreement trade is via surface modes. In terms of metric ton volume, US furniture imports from Mexico and Canada have been very uneven over the last five years, with modest growth rates in the last two years. This performance contrasts with the steady growth Vietnam is showing in terms of export volume to the US. As measured by TEU volume, China is the largest supplier for US furniture imports, accounting for 57.6 percent of the market year to date through June, which is remarkable. China's sourcing share, however, has declined over the last 10 years; in 2007, China accounted for 65.7 percent of total US TEU furniture imports. Partly because of rising wages and labor shortages, resulting in higher production costs for labor-intensive manufacturing, China has seen its export volume of low-value, labor-intensive goods decline over the last 10 years. US FURNITURE IMPORTS FROM MEXICO AND CANADA RISE MODESTLY CHINA LEADS US FURNITURE IMPORTS Source: IHS Global Trade Atlas Source: IHS Global Trade Atlas