Report: Logistics Market Snapshot Tracks Industry Growth

The Georgia Center of Innovation for Logistics (Savannah, Ga.) released an industry snapshot in July documenting progress for the trucking, rail, air freight, ocean freight and warehouse and distribution sectors of the logistics industry.

Based on the report’s findings, the trucking market appears strong. After declining for the previous two months, over-the-road trucked shipments rose 1 percent in June. Surface transport-related trade between the United States and its North American Free Trade Agreement (NAFTA) partners increased 12.1 percent in April when compared to the previous year, which marks the 17th consecutive month of increases. Heavy-duty truck sales increased 68.3 percent in May, which was the fastest growth rate in 17 months. The trucking industry added 4,400 new jobs in June, with a workforce increase of 3.3 percent. Economists expect orders for heavy-duty Class 8 trucks to total 21,200 units, an 11 percent decrease from the previous month, but a 35.3 percent increase from the previous year.

The report shows an 11.6 percent increase in United States Freight Rail Traffic from June 2009. Greenbrier Companies (Lake Oswego, Ore.) reported revenue increases of 153 percent in fiscal year 3Q, but posted a net loss of $3.3 million after paying a $10 million debt. Railroad employment increased by 745 employees from April to May.

The report notes that global air freight fell 4.3 percent in May when compared to the previous year, but rose 1.2 percent from April. The International Air Transport Association (Montreal, Quebec) expects 2011 airline net profits of $4 billion, which is 78 percent lower than last year.

The report states that the U.S. imported more than $67 billion of cargo via ocean in May, an increase of 7 percent from the previous month, and exported $48 billion, a 27 percent increase from 2010. The Port of Brunswick posted its highest monthly volume ever in May. Year-to-date steel imports increased 20.6 percent, reflecting a steady improvement in the market with strong demand and pricing. Drewry Maritime Research (London) predicts east-west ocean freight rates will drop 20.8 percent in 2011.

According to the report, the U.S. average industrial vacancy rate was 9.3 percent in the warehousing and distribution sector. Hyundai Construction Equipment Americas (Chicago) is investing $10 million to move its American headquarters from Chicago to Norcross, Ga. The new headquarters will include a warehouse. Kuehne + Nagel (Schindellegi, Switzerland) handled nearly 10 percent of the world’s air and sea freight business. The top 10 freight forwarders’ business accounted for 44 percent of the market.

For more information, visit logistics.georgiainnovation.org.