Skip to content
Search AI Powered

Latest Stories

newsworthy

global container trade weakens

In a report issued in mid-September, Global Insight's Paul Bingham warned that 2008 would not be a good year for container shipping companies.

In an interconnected world, economic infections spread rapidly. It should come as no surprise, then, that as the U.S. economy's health has deteriorated, global trade has weakened along with it.

In a report issued in mid-September, prior to the banking collapse that led to the Wall Street bailout, Global Insight's Paul Bingham warned that 2008 would not be a good year for container shipping companies. Bingham, managing director of the research firm's Trade and Transportation Group, wrote that he expected to see red ink on shipping companies' ledgers in the third and fourth quarters. Container trade should begin to recover by the end of next year, Bingham added, but he cautioned that his assessment came with "a lot of provisos and caveats."


Bingham said his concern was not so much with the fundamentals of the container shipping industry as with the spreading liquidity freeze and the resulting decline in demand. He said he expects U.S. imports to decline more severely and rapidly than originally anticipated. Global Insight now forecasts a decline of 8.2 percent for containerized imports in 2008; the firm previously had forecast a 7.1-percent drop.

With economies around the world facing contraction, Global Insight has downgraded its near-term forecasts of ocean container trade for several regions, including Europe. "We have been concerned with the growing number of economic indicators for the European Union that point to a greater loss of consumer confidence than had been previously anticipated," Bingham wrote. "Indicators now suggest that the EU is headed toward recession." One such indicator was a fall in European industrial production in May, the sharpest drop since 1992, according to Global Insight.

On a more optimistic note, the firm expects the final numbers for 2008 will show U.S. export growth of 22.6 percent, compared to an earlier forecast of 17.7 percent growth. In particular, there have been significant gains in exports to Brazil, India, Indonesia, Malaysia, and South Korea. Most of the export growth took place in the first half of the year; growth is forecast to slow in the second half.

Another potential bright spot for shippers: The weakness in trade volumes comes just as many shipping lines are taking deliveries of new container vessels. The resulting increase in capacity during a period of slow demand is likely to exert downward pressure on freight rates. Bingham wrote that spot rates from the Far East are already declining, and that some carriers are forgoing their normal peak-season surcharges.

The Latest

More Stories

Warehouse automation project orders fell 3% in 2024

Warehouse automation project orders fell 3% in 2024

Warehouse automation orders declined by 3% in 2024, according to a February report from market research firm Interact Analysis. The company said the decline was due to economic, political, and market-specific challenges, including persistently high interest rates in many regions and the residual effects of an oversupply of warehouses built during the Covid-19 pandemic.

The research also found that increasing competition from Chinese vendors is expected to drive down prices and slow revenue growth over the report’s forecast period to 2030.

Keep ReadingShow less

Featured

screenshot of kodiak hub software

Swedish supply chain tech firm Kodiak Hub expands to U.S.

The Swedish supply chain software company Kodiak Hub is expanding into the U.S. market, backed by a $6 million venture capital boost for its supplier relationship management (SRM) platform.

The Stockholm-based company says its move could help U.S. companies build resilient, sustainable supply chains amid growing pressure from regulatory changes, emerging tariffs, and increasing demands for supply chain transparency.

Keep ReadingShow less

Logistics gives back: February 2025

Here's our monthly roundup of some of the charitable works and donations by companies in the material handling and logistics space.

  • For the sixth consecutive year, dedicated contract carriage and freight management services provider Transervice Logistics Inc. collected books, CDs, DVDs, and magazines for Book Fairies, a nonprofit book donation organization in the New York Tri-State area. Transervice employees broke their own in-house record last year by donating 13 boxes of print and video assets to children in under-resourced communities on Long Island and the five boroughs of New York City.
  • Logistics real estate investment and development firm Dermody Properties has recognized eight community organizations in markets where it operates with its 2024 Annual Thanksgiving Capstone awards. The organizations, which included food banks and disaster relief agencies, received a combined $85,000 in awards ranging from $5,000 to $25,000.
  • Prime Inc. truck driver Dee Sova has donated $5,000 to Harmony House, an organization that provides shelter and support services to domestic violence survivors in Springfield, Missouri. The donation follows Sova's selection as the 2024 recipient of the Trucking Cares Foundation's John Lex Premier Achievement Award, which was accompanied by a $5,000 check to be given in her name to a charity of her choice.
  • Employees of dedicated contract carrier Lily Transportation donated dog food and supplies to a local animal shelter at a holiday event held at the company's Fort Worth, Texas, location. The event, which benefited City of Saginaw (Texas) Animal Services, was coordinated by "Lily Paws," a dedicated committee within Lily Transportation that focuses on improving the lives of shelter dogs nationwide.
  • Freight transportation conglomerate Averitt has continued its support of military service members by participating in the "10,000 for the Troops" card collection program organized by radio station New Country 96.3 KSCS in Dallas/Fort Worth. In 2024, Averitt associates collected and shipped more than 18,000 holiday cards to troops overseas. Contributions included cards from 17 different Averitt facilities, primarily in Texas, along with 4,000 cards from the company's corporate office in Cookeville, Tennessee.

Catch a thief, stop a vandal

Electric vehicle (EV) sales have seen slow and steady growth, as the vehicles continue to gain converts among consumers and delivery fleet operators alike. But a consistent frustration for drivers has been pulling up to a charging station only to find that the charger has been intentionally broken or disabled.

To address that threat, the EV charging solution provider ChargePoint has launched two products to combat charger vandalism.

Keep ReadingShow less
ATRI releases annual list of nation’s top truck bottlenecks

ATRI releases annual list of nation’s top truck bottlenecks

New Jersey is home to the most congested freight bottleneck in the country for the seventh straight year, according to research from the American Transportation Research Institute (ATRI), released today.

ATRI’s annual list of the Top 100 Truck Bottlenecks aims to highlight the nation’s most congested highways and help local, state, and federal governments target funding to areas most in need of relief. The data show ways to reduce chokepoints, lower emissions, and drive economic growth, according to the researchers.

Keep ReadingShow less