2018 Rate Outlook: Economic Expansion, Pushing
Trade and transport analysts see rates rising across all modes in accordance with continued expansion of domestic and international markets. Economists, meanwhile, say shippers can expect revenue growth in transport verticals to remain in the 3%-plus range.
The best global growth rate in seven years—3.2% in 2017—is based on firm foundations, contend leading economists. They add that, barring a significant shock, this current expansion has plenty of “staying power” and should continue to push rates up and keep capacity constrained around the globe. http://www.logisticsmgmt.com/article/2018_rate_outlook_economic_expansion_pushing/oceanfreight
Freight market update: Outlook for 2018
2017 was an interesting year for the global freight market. The growth of e-commerce sparked air freight capacity shortages on core trade lanes and drove air freight rates to record highs. The ocean market in 2017 was more stable, with greater predictability (fewer blank sailings), an early and flattened-out peak season, and price levels between 5% and 20% higher than in 2016. This was mostly driven by the unsustainable market in 2016 that led to Hanjin’s bankruptcy and massive consolidation. Further significant disruptions were caused by the Petya malware virus and storms like Hurricane Harvey, leading to delays, re-routings, and temporary capacity issues. https://www.supplychaindive.com/news/freight-market-update-outlook-for-2018/514714/
U.S. Senate Committee on Environment and Public Works to hear from AAPA and port stakeholders
Friedman’s testimony, which will focus on issues related to navigation infrastructure maintenance, rehabilitation and replacement, is to help committee members better understand and appreciate some of the critical infrastructure issues faced by America’s public ports.
Speaking on behalf of the American Association of Port Authorities (AAPA), Port of Cleveland President and CEO William Friedman will testify tomorrow before the U.S. Senate Committee on Environment and Public Works (EPW) in a hearing titled America’s Water Infrastructure Needs and Challenges. http://www.logisticsmgmt.com/article/u.s._senate_committee_on_environment_and_public_works_to_hear_from_aapa_and/ports_and_infrastructure
U.S. Ports Update Part 1: Expanded Panama Canal Changes the Balance
Following the close of its 2017 fiscal year, Panama Canal authorities announced that the entrepot welcomed a record 403.8 million tons—the largest amount of annual volume ever transited in its 103-year history. Industry analysts say the impact on U.S. ocean cargo gateways will soon become evident.
At this time last year, industry analysts were waiting to see if the Trump Administration would deliver on its promises to enhance port infrastructure. While the jury is still out on that one, the focus has now been placed on finding the customized solution for U.S. ports reliant on the Suez and newly-expanded Panama canals. http://www.logisticsmgmt.com/article/u.s._ports_update_part_1_expanded_panama_canal_changes_the_balance/ports_and_infrastructure
Air freight capacity stretched thin as e-commerce flourishes
Shippers and carriers always view the holiday season with concern, if not dread. Do we have enough staff? Vehicles? Inventory? Are we ready for the online purchases and, later, the returns? https://www.supplychaindive.com/news/air-freight-capacity-stretched-thin-e-commerce-flourishes/514834/
Autos and Agriculture Key Priorities in U.S.-South Korea Trade Talks
Negotiators met Friday to discuss reworking another free trade deal the president has threatened to sink.
Already facing trade threats from China and the prospects of a dissolved North American Free Trade Agreement, President Donald Trump’s administration put another iron in the international commerce fire on Friday as negotiations began between U.S. officials and their South Korean counterparts over the future of a trade deal with Asia’s fourth-largest economy. https://www.usnews.com/news/economy/articles/2018-01-05/autos-and-agriculture-key-priorities-in-us-south-korea-trade-talks
Brexit: EU ‘tightens transition guidelines’ on immigration, trade and fishing
The UK’s freedom to determine its own rules on immigration, trade and fishing in a transition period after Brexit may be further restricted, according to revised EU guidelines on a transition.