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Georgia Logistics compiles a monthly set of facts and figures regarding the Logistics Markets. We selected a few facts to share with you.



U.S. MARKET

Gross Domestic Product: The U.S. GDP increased 4.2% in the second quarter of 2014 according to the second estimate released by the Bureau of Economic Analysis. 

U.S. Trade Deficit: The U.S. trade deficit decreased by 0.6% in July to $40.5 billion. Exports rose 0.9% to $198 billion and imports rose 0.7% to $238.6 billion. 

Consumer Confidence: The Consumer Confidence Index increased to 92.4 in August 2014, up 2.1 points from the previous month and the highest since October 2007. (The consumer confidence index is based on a monthly survey of 5,000 U.S. household. It is designed to gauge the financial health, spending power, and confidence of the average U.S. consumer.)

Unemployment Rate: The unemployment rate in America fell to 6.1% in August 2014 as there were 142,000 net new jobs. 

Leading Economic Index: The Leading Economic Index for the U.S. increased 0.9% in July to 103.3 (2004=100), following a 0.6% increase in June and a 0.6% increase in May. (The LEI is a composite of 10 economic indicators that together create an analytic system designed to signal peaks and troughs in the business cycle. The LEI reveals patterns in economic data in a clearer and more convincing manner than any individual component alone.)

Retail Sales: Retail and food service sales rose in August to $444.4 billion, up 0.6% from the previous month, and increased 5% above August 2013. Non-store retailer sales were up 6.5% from last year. 

Manufacturing & Trade Sales: Total combined sales and manufacturing shipments totaled more than $1.36 Trillion in July 2014, up 0.8% from June and up 5.3% from the previous year. 

Manufacturing & Trade Inventory: Total value of inventory on hand is estimated at $1.75 Trillion in July 2014, up 0.4% from June and up 5.9% from July 2013. 

Housing Starts: In July, housing starts rose 15.7% to an annual rate of 1,093,000 units. Building permits (an indicator of  future housing starts) rose 8.1% to an annual rate of 1,052,000. Year-over-year, housing starts and building permits in July increased 21.7% and 0.9%, respectively. 

Consumer & Producer Price Index: The consumer price index for all urban consumers increased 0.1% in July from the previous month. Over the last 12 months, the all items index increased 2.0%. The producer price index for finished goods rose 0.1% in July from the previous month. Prices for finished goods rose 1.7% over the previous year.

MULTIMODAL

DOT Freight Transportation Index: The USDOT's freight transportation services index rose 0.9% in July 2014. The index’s reading of 119.6 was up 3.2% from July 2013.

Import Volumes: In July, the U.S. imported about $238.6 billion of cargo. July U.S. imports rose 0.7% in terms of value from June, and rose 4.0% year-over-year. 

Export Volumes: In July, the U.S. exported nearly $198 billion of cargo, the highest on record. July U.S. exports have increased 0.9% in terms of value over the previous month and rose 4.3% year-over-year. 

Import & Export Price Index: U.S. import prices fell 0.9% in August. Import prices fell 0.4% over the past year. The price index for U.S. exports fell 0.5% in August. Export prices increased 0.4% year-over-year. 

Multimodal News Clips: • Area Development magazine has ranked Georgia as the No. 1 place in the nation in which to do business. Area Development is a leading executive magazine cover corporate site selection and relocation. Georgia 

• ranked first for labor climate and second for business environment, overall infrastructure, and global access. 

• • Metro Atlanta had a record $18.8 billion in goods exports in 2013, a 4% increase over the previous year. Atlanta accounted for 55% of Georgia’s total merchandise exports, and was among 26 metropolitan areas ranking in the top 50 that achieved record export levels in 2013. Overall, Atlanta ranked 18th in the nation for exports in 2013. 

• • Digital trade is responsible for an estimated 3.4% to 4.8% boost in U.S. GDP. Commerce that was conducted via the Internet resulted in an estimated $517.1 billion to $710.7 billion increase in U.S. GDP in 2012. 

RAIL:

U.S. Freight Rail Traffic: Railroad bulk carload freight in August 2014 fell 2.6% from July 2014. Freight traffic in August rose 2.9% from August 2013. Carloads excluding coal increased 7.8% over the previous year. (Report includes rail car-loadings by 19 different major commodity categories as well as intermodal units)

U.S. Intermodal Rail Traffic: Intermodal rail traffic in August 2014 was 4.3% higher than in August 2013, and rose 0.2% from July 2014. Intermodal loadings have experienced year-over-year gains for 57 straight months. (Report includes rail car-loadings by 19 different major commodity categories as well as intermodal units)

AIR FREIGHT:

Air Cargo Traffic: Global air freight traffic in July increased 5.8% from one year ago, and rose 1.1% from the previous month. North American air freight in July rose 5.2% year-over-year. 

Jet Fuel Prices: As of August 29, 2014, the global average jet fuel price was $120.6 per barrel; down 0.5% from the previous month, and 8.4% lower year-over-year. (The weekly index and price data shows the global average price paid at the refinery for aviation jet fuel)

Air Freight News Clips: • Airports around the world posted the strongest freight numbers in two years, seeing a 6.7% increase in volumes in July over the same month last year. North American airports experienced an 8.9% increase in volumes during the month, while Middle Eastern airports saw the largest increase at 12%.

OCEAN FREIGHT:

Import Volumes: Import volume through major U.S. container ports is expected to total 1.5 million containers in September. In July, the latest month for which numbers are available, U.S. container ports handled 1.5 million TEUs, a 1.1% increase from the previous month and a 3.7% increase from the same month last year. Total U.S. containerized imports are expected to increase 5.3% in 2014.

Ocean Bulk Freight Rates: The Baltic Dry Index rose 51.9% in August, ending at 1,147. The BDI has risen 3.4% during the first half of September. 

Ocean Freight Business News: • Maersk Line reported a profit of $547 million for the second quarter. The container shipper increased its volume 6.6% to 2.4 million FEUs during the quarter and cut costs by 4.4%. The shipper’s parent company, Maersk Group increased its half-year earnings by 42%, totaling $1 billion. Maersk expects its full-year profit to be around $4.5 billion for 2014.

• • U.S. steel imports in July increased 6% over the previous month and rose 56% year-over-year. July imports totaled 3.8 million net tons. Steel imports from South Korea and Russia showed the largest growth, increasing 27.5% and 135%, respectively. During the first seven months of 2014, U.S. steel imports increased 36.6% over the same period in 2013 to total 24.9 million net tons. 

• • Containerized imports of auto parts into the United States increased 5.2% year-over-year in the first half of 2014 and were up 11% compared to the first half of 2012. Parts importers brought in a total of 452,098 TEUs in the first and second quarters of 2014. The Port of Savannah moved 40,226 TEUs of containerized auto parts, a 16.1% increase over the first half of 2012. 

WAREHOUSING & DISTRIBUTION:

Industrial Vacancy: The U.S. average industrial vacancy rate was 7.7% during Q2 2014, down from 7.9% in the previous quarter. Overall vacancy was 10.7% in Atlanta during the second quarter. 

Warehouse Rent Rates: In Q2 2014, warehouse and distribution rental rates in the US averaged $5.36 per square foot, down from $5.40 per square foot in the previous quarter. Rental rates for warehouse space averaged $4.02 per square foot in Atlanta.