Subscribe to our free, weekly email newsletter!

Global logistics: New Panjiva report takes a closer look at export growth

By Jeff Berman, Group News Editor
June 13, 2011

While last week’s news that the United States trade deficit headed in the right direction, coming in at $43.7 billion in April, its lowest tally since last December, analysis from Panjiva, an online search engine with detailed information on global suppliers and manufacturers, indicates there may be more than meets the eye when gauging how much of an improvement the April numbers were.

This may be especially true on the export side, according to Panjiva, with April exports hitting $126.4 billion for an all time high based on U.S. Department of Commerce data.

Panjiva’s new quarterly report, entitled the Quarterly Trendspotting Report, takes a detailed look at the macro trends that impacted global trade during the first quarter of 2011. One of its main objectives is to assist sourcing executives determine which geographies are “trending hot” for products they are looking for on a worldwide basis and what the current trends are on an annual basis.

In an interview with LM, Panjiva CEO Josh Green said that export data is important as it provides a sense of the expense of which the U.S. manufacturing economy is recovering, as well as which manufacturing sectors are recovering.

“There is a danger in looking at the top line export numbers and assuming we are in a strong recovery mode,” said Green. “Looking at the data it looks like oil and petroleum-based products saw the most growth in Q1 [up 63 percent from Q4 2010 at nearly $10.8 billion] and that says our oil industry is alive and well; it does not speak to a broad-based manufacturing recovery.”

Other strong sectors for U.S exports were computers, appliances, and industrial machinery up 14 percent at about $5.9 billion and vehicles up 21 percent at roughly $4.7 billion. 

U.S. sectors not seeing nearly as strong export growth in the first quarter included pharmaceuticals, tobacco, and food waste and animal feed, among others.

Green said the report’s main takeaways have to do with the fact that U.S. companies still have a “continued dependence” on China, with the dollar value of U.S. imports from China growing by more than $13 million in the first quarter for an 18 percent improvement.

“When you look at imports and exports, China remains big and is growing,” said Green. “There has been a lot of talk over the last couple of years—particularly from sourcing executives—about diversifying beyond China, and realistically there is a disconnect between rhetoric and reality there,” he said. “People are talking about diversifying but there is still U.S. dependence on China.”

For supply chain professionals sourcing goods and moving freight globally, Green explained that it is imperative to look at the data and listen to customers when making decisions and considering the fact that China is still the most common region to do global business in. And a close eye needs to be paid attention to the fact that despite recent strong export growth occurring, it is only in a few sectors and not a true indication of broad-based growth, said Green.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in October at 135.7 (2000=100) was up 1.9 percent compared to September’s 133.1, and the ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment was 139.8 in October, which was 0.9 percent ahead of September.

The average price per gallon of diesel gasoline fell 3.7 cents to $2.445 per gallon, according to data issued today by the Department of Energy’s Energy Information Administration (EIA). This marks the lowest weekly price for diesel since June 1, 2009, when it was at $2.352 per gallon.

In its report, entitled “Grey is the new Black,” JLL takes a close look at supply chain-related trends that can influence retailers’ approaches to Black Friday.

This year, it's all about the digital supply network. In this virtual conference, we will define the challenges currently facing supply chain organizations and offer solutions designed to transform linear operations into dynamic, automated networks that offer seamless communication, visibility, and the ability to respond and optimize processes at any given time.

In his opening comments assessing the economy at last week’s RailTrends conference hosted by Progressive Railroading magazine and independent railroad analyst Tony Hatch, FTR Senior analyst Larry Gross said the economy continues to slog ahead at a relatively tepid pace, coupled with some volatility in terms of overall GDP growth. And amid that slogging, Gross said there is currently an economic hand-off occurring between the industrial sector and the consumer sector.


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA