Subscribe to our free, weekly email newsletter!


Panjiva data shows decline in U.S. bound shipments from November to December

Despite decline, December shipments are up 10 percent annually
By Jeff Berman, Group News Editor
January 23, 2012

Despite some recent glimpses of economic improvement in recent weeks, global trade activity showed a typical seasonal decline in December, according to data from Panjiva, an online search engine with detailed information on global suppliers and manufacturers.

United States-bound waterborne shipments from November’s 1,029,789 to December’s 956,879 were down 7 percent and up on an annual basis for the same period—with November 2010 at 1,013,564 and December 2010 at 868,365. From November 2010 to December 2010, shipments were down 14 percent compared to 7 percent a year later.

This 7 percent sequential decline comes on the heels of a 0.2 percent gain from October to November, with shipments showing sequential increases 4 of the past 9 months. In 2010, 2009, 2008, and 2007 November to December shipments were down 9 percent, up 3 percent, down 5 percent, and down 1 percent respectively, said Panjiva.

The number of manufacturers shipping to the U.S. from November’s 146,843 to December’s 140,656 was down 4 percent. For the same period in 2010, the number of manufacturers shipping to the U.S. was down 9 percent.

While the numbers were down, Panjiva CEO Josh Green explained it is a function of seasonality to a large degree, adding that it was not out of the range of what was expected.

“December into January and February typically sees significant declines from a seasonal standpoint,” said Green. “The only exception came at the end of 2009, when we saw an increase [in shipments] from November to December.”

But the 7 percent decline in shipments is half of what it was the previous year, which makes it good news, said Green.

And shipments on an absolute level providing an encouraging sign, too, with December 2011 shipments up 10 percent compared to December 2010.

“For most of 2011, we were tracking right around where we were in 2010,” noted Green. “We then reached the end of the year and saw shipments up 10 percent so that is really quite good. What this reflects is relatively strong ordering for inventories that were needed for the first half of 2012, and these orders were placed just before the holiday season and reflected a degree of optimism among purchasing executives about what the first half of 2012 might look like.”

With recent jobs numbers showing some strength, Green said that could serve as a catalyst to give sourcing executives confidence when placing orders and is an important indicator to keep an eye on.

But he noted that the tenuous economic situation in Europe requires even more attention.

“If Europe takes a turn for the worse from here, then the trajectory of trade becomes completely unpredictable,” said Green. “Uncertainty is a killer. You want to be able to place orders in an environment in which there is reasonable visibility as to what the future holds and now that is virtually impossible in Europe.”

 

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

Jacksonville, Fla.-based Florida East Coast Railway (FECR), a 351-mile freight rail system on the state’s east coast, recently made two separate announcements. One had to do with an expansion of intermodal services between Charlotte, N.C. and various locations in South Florida and another was related to the company boosting its intermodal capacity through the addition of new equipment.

The International Air Transport Association (IATA) announced August 2014 data for global air freight markets showing continued “robust”growth in air cargo volumes.

Even though some of its key metrics dropped sequentially from August to September, the outlook for manufacturing over all remains strong, according to the most recent edition of the Manufacturing Report on Business issued today by the Institute for Supply Management (ISM).

Company officials said that these planned changes, which will take effect on January 4, 2015, will provide for increases in current pay rates and reduce the time it takes for its nearly 15,000 drivers to reach top pay scale.

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Article Topics

News · Global Trade · Panjiva · All topics

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA