Skip to content
Search AI Powered

Latest Stories

newsworthy

the return of the big box

The shipping container shortage may be over, but that's not necessarily a good thing.

During 2008, U.S. exporters were often frustrated by a shortage of seagoing containers to meet overseas demand. But as 2009 dawns, container capacity on export trade lanes appears to be more abundant, according to industry experts.

"There is no container shortage on an aggregate basis," Ted Prince, president of Consolidated Chassis Management and chairman of the Intermodal Association of North America, told attendees at an October conference of the Paris-based Bureau International des Containers et du Transport Intermodal. "It's just a matter of getting the containers to the people who want them. The issue for the people who are ready to export is whether or not it makes financial sense to move those containers where they need them."


Mark Yeager, president and chief operating officer of The Hub Group, a major player in the trans-shipment sector, said container capacity has loosened in recent months as the global economic downturn curbs shipping activity. "At the beginning of the year, we saw some serious tightness for shipping boxes," Yeager said. "That has eased substantially in the past few months."

But now the big question for the U.S. economy in general, and U.S. exporters in particular, is if that's necessarily a good thing. "Hell no," said Michael Wolfe, an intermodal veteran and currently principal of the North River Consulting Group. "You want vigorous competition for U.S. exports. It would be ideal to have that along with a strong dollar. Having a more balanced economy and a more competitive manufacturing sector feeding exports is the healthiest scenario."

But as the global financial crisis dampens economic activity in international markets, such a scenario appears unlikely, at least in the short term. In fact, global weakness was evident long before financial markets began seizing up in the third quarter of 2008.

During last year's second quarter, international shipping volume came in at 1.99 million containers, a 5.9-percent drop when compared with the same period in 2007, according to a report from the Intermodal Association of North America. That was a slight uptick from the first quarter of 2008, when international volume dipped to 1.92 million containers, which was the first time in two years that shipments fell below the 2 million mark.

"There has been a diminishment in the growth of shipments, which can be tied to a weaker economy," Wolfe said.

Rodolfo Sabonge, vice president of market research and analysis for the Panama Canal Authority, said the financial crisis likely would blunt demand for international trade for "a year or two." Sabonge based that prediction on a similarly profound slump following the terrorist attacks of Sept. 11, 2001.

"Been there, done that," he said. "This will have an impact on consumer confidence. But it will be relatively short-lived. This really is a very cyclical business."

The Latest

More Stories

port of oakland port improvement plans

Port of Oakland to modernize wharves with $50 million grant

The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.

Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.

Keep ReadingShow less

Featured

screen shot of onerail tech

OneRail raises $42 million backing for fulfillment orchestration tech

The Florida logistics technology startup OneRail has raised $42 million in venture backing to lift the fulfillment software company its next level of growth, the company said today.

The “series C” round was led by Los Angeles-based Aliment Capital, with additional participation from new investors eGateway Capital and Florida Opportunity Fund, as well as current investors Arsenal Growth Equity, Piva Capital, Bullpen Capital, Las Olas Venture Capital, Chicago Ventures, Gaingels and Mana Ventures. According to OneRail, the funding comes amidst a challenging funding environment where venture capital funding in the logistics sector has seen a 90% decline over the past two years.

Keep ReadingShow less
screen display of GPS fleet tracking

Commercial fleets drawn to GPS fleet tracking, in-cab video

Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.

Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.

Keep ReadingShow less
forklifts working in a warehouse

Averitt tracks three hurdles for international trade in 2025

Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.

Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.

Keep ReadingShow less
chart of trucking conditions

FTR: Trucking sector outlook is bright for a two-year horizon

The trucking freight market is still on course to rebound from a two-year recession despite stumbling in September, according to the latest assessment by transportation industry analysis group FTR.

Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.

Keep ReadingShow less