Monday, October 10, 2011

Shipping activity shows strong gains


Mark Perry has some good background on this. I'm adding my chart to the mix since it shows both total expenditures and an index of shipping activity. Activity is up 7.5% in the year ending Sept. '11, while expenditures are up 15%. Expenditures have risen much faster than shipments since the recent recovery began, suggesting that freight companies are enjoying some decent pricing power. The strong rise in shipping activity in the past year and in recent months is one more sign that the U.S. economy is not on the cusp of another recession, and the strong gains in expenditures belie even the hint of deflation. On the contrary, economic activity and cash flows are definitely improving according to these figures.

2 comments:

Zhang Fei said...

I have to wonder how this squares with reports of diminishing port volumes:

Key parts of the U.S. supply chain have some troubling news: The traditional holiday peak in shipping volumes has disappeared.

Both the Port of Los Angeles and the Port of Long Beach, which together account for more than 40% of imports into the U.S., say the rise in shipments that typically begins in July and lasts through early fall didn't happen this year. Instead, Dick Steinke, executive director of the Port of Long Beach, says shipping volumes have posted two consecutive months of declines, and he's anticipating a double-digit drop for September. The last time the port experienced no peak was during the height of the recession in 2009, he says. Before that, the phenomenon was unprecedented.

Nichole said...

Nowadays, you will find that most of the businesses which deal with international export and import industry opt for air freight services. You can become freight broker too and earn from it.