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2nd Quarter 2015

In This Issue
Shift in Trade to East
CS Adds Railcars
Transportation News
Current Fuel Costs
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Best Summer Trips in 2015
    

 

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U.S. East Coast Volume Outpaces West Coast Traffic

Profound Shift in Trade  

            

For the first time in recent decades, U.S. East Coast ports handled more loaded containers in the first three months of the year than their West Coast counterparts, demonstrating the profound and lingering shift in trade during and now in the wake of the West Coast labor crisis.

 

   

Numbers released by PIERS, a sister product of JOC.com within IHS Maritime & Trade, show loaded container traffic jumped 9 percent year-over-year on the East Coast in the first quarter of 2015, boosting Atlantic ports' market share to 48 percent.

 

West Coast traffic, meanwhile, dropped 12 percent in the first three months of the year, hitting 44 percent. Gulf Coast traffic also saw a boost in laden container traffic, up 8 percent in the first quarter, snagging an 8.3 percent share of the market.

 

Over the past five years, East Coast ports averaged 43 percent of U.S. container market share. Things began to change in October 2014, though, as labor negotiations between port operators and union workers began to heat up on the West Coast, spurring congestion and work slowdowns at America's busiest ports.

 

Between October and February, West Coast ports steadily lost their market share to counterparts in the east, as well as rival ports in Canada and Mexico. Diverted imports have been a substantial boost to business on the East Coast, spurring traffic at ports in Virginia, South Carolina, Georgia, Florida, as well as on the Gulf Coast in Texas.

 

East Coast ports grew their share of the U.S. import market to 44 percent between January and April this year, up roughly 5 percent since the end of last year, according to PIERS data.  Meanwhile, West Coast ports' share of U.S. container imports shrank from 54 percent to 49 percent in the first quarter.

 

By April, East Coast container imports were at near parity with West Coast traffic, but it was still uncertain how much of the west-to-east diversions would prove permanent. The fate of those diversions remains uncertain even today, as the threat of congestion continues to loom over Pacific Coast ports and added traffic on the Atlantic Coast has now sent waves of congestion to those shores as well.

 

     

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Cornerstone Continues to Increase Railcar Fleet

Adding Additional Cars Through End of 2015 and Into 2016 

            

CRYX 6000 Named in Honor of Cornerstone Systems 
Chairman and Founder Rick Rodell 

 

All across the country, the Cornerstone logo is being seen on more and more railcars as they ride the nation's rails moving freight.  As a premier carrier in the wine industry, Cornerstone's current fleet transports wine to distributors across the country.  Answering the demand for increased capacity, Cornerstone will be adding cars through the end of 2015 and into 2016.    

 

"Cornerstone continues to make long-term investments by adding assets to support our core business." said Burke Anderson, Vice President of Railcar Services and Wine & Spirits Sales.

 

     

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Transportation Industry News
News
Industry News
  
LA/Long Beach Ports Losing to Rivals Amid Struggle with Giant Ships  -

The sudden growth of ship size has ports across the world scrambling to update infrastructure. Many are moving faster than L.A. and Long Beach, which are in the throes of multibillion-dollar expansions.  Ports along the East Coast and in Houston have invested billions of dollars to deepen harbors, expand terminals and upgrade rail systems that connect to lucrative markets in the Midwest. The port of Savannah, Ga., has more than doubled the volume of imported container goods over the last decade, while the Canadian government and railways expanded British Columbia's Port of Prince Rupert to become a direct competitor to U.S. ports farther south.  The bottlenecks at crucial commercial gateways have led to increased costs for U.S. retailers and manufacturers, many of which have resorted to stockpiling goods in warehouses or using expensive air freight to ensure timely delivery of goods.  The congestion problems are magnified at the ports of Los Angeles and Long Beach because of the huge volumes they handle. Long before the labor dispute between shipping companies and dockworkers in recent months, the San Pedro Bay ports were among the first in the U.S. to contend with the challenges posed by massive new vessels deployed by shipping lines across the world.

  

U.S. Import Volume Returns to Normal, Forecast to Rise -    

U.S. containerized imports are forecast to rise 5.4 percent year-over-year in the second half of the year after inbound volume at the major gateways for retail goods hit normal levels in April, according to the monthly Global Port Tracker.  

  
Global Intermodal Freight to Grow 17.4 Percent - 

A new study from Transport Market Research Reports, "Intermodal Freight Transportation Market 2015-2019," says the global intermodal freight transportation market will grow at a compound annual growth rate of 17.4 percent through 2019. "Companies are relying more on intermodals for the shipment of automotive parts, consumer goods, and heavy vehicles," the study notes. "Though there are many reasons for the increased use of intermodals, the main reasons are efficiency, low cost, and environmental impact."    

  

ATA Applauds House For Fiscal Year 2016 Transportation Bill -

The U.S. House on June 9 approved HR 2577, the fiscal year 2016 Transportation, Housing/Urban Development, and Related Agencies Appropriations Act. The so-called T-HUD bill, would provide $55.3 billion in discretionary budget authority, which is a $1.5 billion increase above the current funding. If approved by the Senate, the legislation also would require that before the Federal Motor Carrier Safety Administration's 34-hour restart rule is reinstated, a study must be conducted on the rule's safety benefit. It also would permit the use of twin 33-foot trailers and provide FMCSA with $572 billion, and includes a provision that would block the U.S. Department of Transportation from issuing a rule intended to increase insurance requirements for motor carriers.   American Trucking Associations applauded passage of the bill.

  

First Licensed Autonomous Freight Truck Hits the Road in U.S. -
Some call it unmanned, but analysts state it is not driverless.  The vehicle promises to reduce accidents, improve fuel consumption, cut highway congestion, and have less of an environmental impact than other trucks.  Interested?  Click here to Read More    
 

 

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Fuel Prices           

The Energy Information Administration reports U.S. On-Highway Diesel Fuel Prices (dollars per gallon) every week.   

 

6/8/15                                       Date Released 


2.884                                           Average U.S. Retail Price  
 
-0.025 (Down)                             Change From Week Ago
-1.008 (Down)                             Change From Year Ago
  
Fuel Pump                  
If you would like to monitor the DOE website directly, click on the following link.  http://tonto.eia.doe.gov/oog/info/wohdp/diesel.asp 
  
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Newsletter Sources:  Cornerstone Systems,  Journal of Commerce, Insurance Journal,  Transport Topics, SmartWay Transport-U.S. EPA, U.S. Energy Information Administration, National Geographic    

 

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