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Cargo Trends: Global Port Tracker, U.S. Great Lakes

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Import volume at the top U.S. containerized retail cargo handling container ports grew in October despite the government shutdown and will continue to do so nearly uninterrupted well into 2014, according to the monthly Global Port Tracker report released November 12 by the National Retail Federation (NRF) and Hackett Associates. Approximately 28 million metric tons of cargo transited the St. Lawrence Seaway from March 22 to October 31, a drop of 7.0 percent from the corresponding 2012 period, according to data reported by the U.S. Saint Lawrence Seaway Development Corporation.

Global Port Tracker: Container Imports Up in October, ‘Solid Growth’ Forecast for First Half 2014

Import volume at the top U.S. containerized retail cargo handling container ports grew in October despite the government shutdown and will continue to do so nearly uninterrupted well into 2014, according to the monthly Global Port Tracker report released November 12 by the National Retail Federation (NRF) and Hackett Associates.

Global Port Tracker’s conclusions are based on a survey and analysis of inbound container traffic flows at the ports of Charleston, Hampton Roads, Houston, Long Beach, Los Angeles, Miami, New York/New Jersey, Oakland, Port Everglades, Savannah, Seattle, and Tacoma.

"Retailers place their orders for merchandise months ahead of time, so cargo arriving at the ports in October and for most of the rest of the year was ordered long before anybody ever heard of a shutdown," said Jonathan Gold, the NRF’s vice president for supply chain and customs policy. "The question at this point isn't how much merchandise arrived but how much consumers bought, and how they are going to react as economic talks continue in Washington. Lawmakers need to take steps that build confidence, not continue the uncertainty."

As noted by the NRF, U.S. Customs and Border Protection inspectors remained on the job throughout the 16-day shutdown, and no major disruptions of cargo handling were reported.

The cargo numbers come as NRF is predicting that this year’s holiday sales will grow 3.9 percent over last year to a total of $602.1 billion. It cautions, however, that cargo import numbers do not correlate directly with sales because they count only the number of cargo containers, not the value of the merchandise inside them.

U.S. ports followed by Global Port Tracker handled 1.43 million TEUs in September, the latest month for which after-the-fact numbers are available. That was down 3.6 percent from the preceding month but up 2.0 percent from September 2012. October is estimated at 1.43 million TEUs, up 6.5 percent from last year. 

Future month forecasts: November – 1.33 million TEUs (+3.3 percent); December – 1.31 million TEUs (+1.8 percent): January 2014 – 1.35 million TEUs (+3.0 percent); February – 1.18 million TEUs (-7.5 percent); and March – 1.33 million TEUs (+17 percent).

The 2013 total is forecast at 16.2 million TEUs, up 2.3 percent from 2012’s 15.8 million TEUs. Hackett Associates founder Ben Hackett said the 2.3 percent increase for the year is down from the previously forecast 2.7 percent partly due to the shutdown but also because of a relatively high inventory-to-sales ratio.

"The GDP forecast for the remainder of this year is not expected to be seriously impacted by the government shutdown and growth going forward should be back to its expansionary path," Mr. Hackett said. "The first half of 2014 will bring solid growth back."

General Cargo Shipments Keep U.S. Great Lakes Ports Busy 

Approximately 28 million metric tons of cargo transited the St. Lawrence Seaway from March 22 to October 31, a drop of 7.0 percent from the corresponding 2012 period, according to data reported by the U.S. Saint Lawrence Seaway Development Corporation. With only two months left in the shipping season, U.S. ports are hustling to move as much cargo as possible.

"The Seaway’s principal commodities – iron ore, coal and grain – helped move the scales in the right direction for cargo tonnage handled on the Great Lakes-Seaway System," said Rebecca Spruill, the corporation’s director of trade development. "Although the binational waterway figures are still below last year’s levels, we’re seeing solid evidence that the final two months of the 2013 navigation season will be extremely busy for our shipping industry."    

At the Port of Cleveland, general cargo throughput grew in October for the second consecutive month, up 20 percent from October 2012 to 50,100 tons. That brought season-to-date total to 307,000 tons, a 23 percent increase from last year’s 250,000 tons.

"This growth shows that there is a higher demand for steel in Northeast Ohio, and it indicates significant growth in the manufacturing sector," said Will Friedman, president and CEO of the Cleveland-Cuyahoga County Port Authority. "Waterborne shipping is the most cost effective means of freight transportation, and the Port of Cleveland is an important link to get our local manufacturers the supplies they need to produce their products."

David Gutheil, the Cleveland port’s vice president of maritime and logistics, attributed this year’s gains to increased demand for steel from local processors and manufacturers, along with new business: "We expect a very strong finish to the 2013 shipping season, which could produce our highest annual tonnage level since the 2008 calendar year."

The Port of Duluth set a record in October with a special heavy-lift cargo. On October 14, the port received four German-built electrical transformers, each weighing close to 300 tons, headed for Alberta in Canada as part of a major power transmission line project that will run from north of Edmonton to south of Calgary. It was the third of four shipments aboard Hansa Heavy Lift vessels from Antwerp. As with the previous shipments, this one included multiple crates of smaller components. 

The last shipment is scheduled to arrive at the end of November – bringing to 16 the total number of transformers discharged, along with nearly 500 crates, at the port authority’s breakbulk facility, Clure Public Marine Terminal. 

Lake Superior Warehousing Co. operates the terminal and its crews have been responsible for handling this series of shipments.

"The port authority here in Duluth has created one of North America’s highest caliber breakbulk terminals, one specifically engineered for large capacity jobs and multimodal connectivity," said Jonathan Lamb, Lake Superior Warehousing Co. president. 

The Port of Indiana-Burns Harbor recorded a 16 percent jump in total tonnage through October, its sixth consecutive month of cargo growth. "An increase in coke, steel and steel-related products, as well as limestone are among this month’s drivers," said Burns Harbor Port Director Rick Heimann. "Additionally, the port received a project cargo shipment of 29 distillery tanks carried by a charter vessel out of Antwerp and bound for a brewery expansion in Chicago.

The corporation also reports that U.S. grain exports remain a flourishing Seaway trade, with shipments for the season up 6.0 percent to nearly 1.0 million tons. As for other cargo, the Seaway data show season-to-date declines for iron ore (-12.5 percent) and coal (-3.0 percent) and increases for scrap metal (+49.0 percent) and liquid bulk (+10 percent). 
 

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