News

July 21, 2010

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The National Average and Most Regional Diesel Fuel Prices Decrease

This week's national average price of diesel fuel decreased as did the prices in all but two regions as well. The current national average for a gallon of diesel is $2.899, a decrease of 0.004¢ from last week. By comparison, the price for a gallon of gasoline increased to $2.722 per gallon which is 0.004¢ higher than last week.

Bloomberg Energy reports that as of Monday, July 19, the spot price for a barrel of West Texas Intermediate oil is $75.87 which is $.94 higher than last week's  price.

In order to see fuel prices by regions when they are posted, click here.

Region	Price (Dollars per Gallon)	Change From a Week Ago	Change From a Year Ago
United States	$2.899	down -0.004	up 0.403
East Coast	2.913	down -0.008	up 0.399
New England	3.015	down- 0.002	up 0.415
Central Atlantic	3.012	down -0.010	up 0.382
Lower Atlantic	2.861	down -0.008	up 0.405
Midwest	2.866	up 0.001	up 0.396
Gulf Coast	2.859	up 0.002	up 0.416
Rocky Mountain	2.902	down -0.010	up 0.343
West Coast	3.042	down -0.015	up 0.447
California	3.116	down -0.007	up 0.413

Source: Energy Information Administration, Official Energy Statistics from the US Government, 7/7/2010

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Intermodal Traffic Gains In Weekly Rail Traffic Results

The Association of American Railroads (AAR)reported Weekly intermodal traffic totaled 192,954 trailers and containers, up 9.1 percent from a year ago and down 16.8 percent compared with 2008. Compared with the same week in 2009, container volume increased 11.4 percent, and trailer volume sank 2.7 percent. Compared with the same week in 2008, container volume fell 10.2 percent and trailer volume dropped 41.9 percent.

Carload traffic showed a decline for the week ending July 10, 2010, with U.S. railroads originating 252,963 carloads, down 3.5 percent compared with the same week in 2009 and down 20.8 percent from 2008. The comparison week in 2009 included the July 4 Independence Day holiday, while 2008 did not. In order to offer a complete picture of the progress in rail traffic, AAR reports 2010 weekly rail traffic with comparison weeks in both 2009 and 2008.

For the first 27 weeks of 2010, U.S. railroads reported cumulative volume of 7,591,926 carloads, up 7.4 percent from 2009, but down 13.2 percent from 2008, and 5,627,846 trailers or containers, up 12.8 percent from 2009, but down 6.6 percent from 2008.

Canadian railroads reported volume of 69,590 cars for the week, up 18.5 percent from last year, and 46,561 trailers or containers, up 24.3 percent from 2009. For the first 27 weeks of 2010, Canadian railroads reported cumulative volume of 1,950,145 carloads, up 21.3 percent from last year, and 1,234,116 trailers or containers, up 14.2 percent from last year.

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ComPair Data Tracks Ocean-Carrier Service Changes

American Shipper affiliate ComPair Data has launched a weekly newsletter that allows shippers and service providers to track changes to ocean carrier services on a global basis.

The ComPair Data ServiceTracker is a weekly report tracking changes in capacity and service rotations of the services of nearly 200 carriers operating on 104 trade routes. Click here receive the free weekly newsletter .http://www.americanshipper.com/ServiceTrackerSubscribe.htm.

ComPair Data takes an analyst's approach to ocean carrier and port service networks to add value to information provided by carriers and ports. International logistics and transportation professionals can use can use ComPair Data comprehensive database and tools to analyze service networks and bring that information into their reports and business models.

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Incoterms® 2010 Now Available

The International Chamber of Commerce (ICC) is preparing to launch the Incoterms® 2010 rules which are revised every decade to keep up with the rapid expansion of world trade. The ICC has announced it is now accepting preorders for the revised Incoterms rules, which will come into effect on January 1 2011.

Featuring two new rules, the Incoterms® 2010 edition will reflect advances in international trade over the last decade, and is an essential tool for trade. Used in both international and domestic contracts for the sale of goods, the rules simplify the drafting of such contracts and help avoid misunderstandings by clearly setting out certain obligations of buyers and sellers.

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Freight Transportation Services Index Fell 0.4 Percent in May from April

The Freight Transportation Services Index (TSI) fell 0.4 percent in May from its April level, declining after two consecutive monthly increases, the Bureau of Transportation Statistics (BTS) reported recently.

BTS reported that the Freight TSI has risen 4.4 percent over the last 12 months, starting in June 2009, after declining 15.3 percent in the previous 10 months beginning in August 2008. The index has increased in nine of the last 12 months. Through the first five months of 2010, the index declined 1.9 percent with small increases in January, March and April combined with a 3.5 percent decrease in February and the 0.4 percent decrease in May.

The Freight TSI measures the month-to-month changes in freight shipments in ton-miles, which are then combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.

The May Freight TSI of 97.7 is a 4.4 percent increase from the recent low of 93.5 reached in May 2009. In May 2009, the index was at its lowest level since June 1997. The Freight TSI is down 13.5 percent from its historic peak of 112.9 reached in May 2006.

Although the index rose 4.4 percent from May 2009 to May 2010, it remains below the level of every other May since 1997 when it was 92.7. March 2010 was the first month since July 2008 in which the Freight TSI exceeded the level of the previous year. The index has exceeded the previous year's level every month since March but still remains below the level of earlier years.

The freight index is down 12.4 percent in the five years from May 2005. The index is down 1.8 percent in the 10 years from May 2000.

The TSI is a seasonally adjusted index that measures changes from the monthly average of the base year of 2000. It includes historic data from 1990 to the present. Release of the June index is scheduled for August 11.

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Study Finds Growing Freight Demands Reaching Transportation Crisis

The American Association of State Highway and Transportation Officials (AASHTO) recently released its report Unlocking Freight, an analysis of America's freight system that finds our highways, railroads, ports, waterways, and airports require investments well beyond current levels to maintain, much less improve,- their performance. The report identifies key projects in 30 states that would improve freight delivery and dependability, and offers a three-point plan to address what is needed to relieve freight congestion, generate jobs and improve productivity.

In 10 years, an additional 1.8 million trucks will be on the road; in 20 years, for every two trucks today, another one will be added. Already bottlenecks on major highways used by truckers every day are adding millions of dollars to the cost of food, goods, and manufacturing equipment for American consumers. As a result, according to a new report released today, the transportation system that supports the movement of freight across America is facing a crisis.

Despite more long-distance freight being moved by intermodal rail, the report finds that trucks will still carry 74 percent of the load. On average, 10,500 trucks a day travel some segments of the Interstate Highway System today. By 2035, this will increase to 22,700 commercial trucks for these portions of the Interstate, with the most heavily used segments seeing upwards of 50,000 trucks a day. Yet between 1980 and 2006, traffic on the Interstate Highway System increased by 150 percent while Interstate capacity increased by only 15 percent. The report identifies the 1,000 miles of most heavily traveled highways used by trucks.

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Retail Container Traffic to be Up 25 Percent in First Half of 2010

Import cargo volume at the nation's major retail container ports will be a full 25 percent higher during the first half of 2010 compared with the same period a year ago, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.

U.S. ports handled 1.09 million Twenty-foot Equivalent Units in December, the latest month for which actual numbers are available. That was unchanged from November but up 2.6 percent from December 2008 to break a 28-month streak during which monthly totals were lower than the same month the year before. One TEU is one 20-foot cargo container or its equivalent.

January was estimated at 1.19 million TEUs, a 17 percent increase over January 2009, and February, traditionally the slowest month of the year, is forecast at 1.1 million TEUs, up 30 percent from the previous year. March is forecast at 1.18 million TEUs, up 23 percent as retailers begin to stock up for spring and summer, April at 1.25 million TEUs, up 27 percent, May at 1.3 million TEUs, up 26 percent, and June at 1.38 million TEUs, up 36 percent.

Those monthly numbers would put the first half of 2010 at 7.4 million TEUs, up 25 percent from last year's 5.9 million TEUs.

With numbers from December now final, 2009 ended with a total volume of 12.7 million TEUs, down 17 percent from 2008's 15.2 million TEUs and the lowest since the 12.5 million TEUs reported in 2003.

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June Retail Sales Mixed As Retailers Prepare For Back-to-School

June retail sales were more of a mixed bag than a solid indicator of the direction of consumer spending. According to the National Retail Federation, June retail industry sales (which exclude automobiles, gas stations, and restaurants) decreased 0.5 percent seasonally adjusted over May and increased 3.3 percent unadjusted year-over-year.

June retail sales released today by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) decreased 0.5 percent seasonally adjusted over May and increased 4.9 percent unadjusted year-over-year.

June retail sales showed solid year-over-year growth but modest month-to-month growth in most sectors. Electronics and appliance stores sales increased 1.3 percent seasonally adjusted from last month and 7.6 percent unadjusted over last year. Sales at furniture and home furnishing stores decreased 1.1 percent seasonally adjusted month-to-month but increased 2.1 percent unadjusted year-over-year. Health and personal care stores sales increased 0.5 percent seasonally adjusted over May and 2.2 percent unadjusted year-over-year.

Clothing and clothing accessory stores sales increased 0.6 percent seasonally adjusted and a solid 6.1 percent unadjusted over last June. The increase in department store sales (1.1 percent seasonally adjusted and 0.5 percent unadjusted) bodes well as retailers head into the all-important back to school season.

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OHL honored by Transportation Marketing and Communications Association

Global supply chain management company, OHL, announced today that its marketing and communication team won a Compass Award of Merit from the Transportation Marketing and Communications Association (TMCA) for the company's website redesign project.  The award was received by OHL's director of marketing and communication, Karen Hall, at the recent TMCA annual conference.

"We are very pleased with this award," stated Scott McWilliams, OHL's CEO.  "Our marketing team partnered with CentreSource to design a website that provides a great user experience, provides information in a concise manner and allows OHL to highlight the expertise of all our business units and acquired companies in one place online."

Evan Owens, director of strategy for CentreSource, said "We are thrilled for OHL and are proud to have participated in this initiative. It's an honor to partner with a world-class company like OHL to help them attain new levels of success and see quantifiable results from their online presence."

OHL's online marketing manager, Michelle McManus, led the website redesign project which is also a finalist for a Nashville American Marketing Association award.  The NAMA awards ceremony was postponed due to flooding in Nashville on May 1st and 2nd.

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Transite Introduces Suite of Less-Than-Truckload Rating Tools

Transite Technology has introduced its Continental Suite of Less-Than-Truckload Rating Tools which is intended to offer shippers, 3PLs and carriers a low-cost, highly-developed alternative.

The product group is comprised of:
Continental LTL Neutral Rate Base: a neutral LTL class rate base that is already being used by shippers and 3PLs providing a single base for all carrier pricing.

Continental Carrier Rate Bases: highly sophisticated rate bases that are developed for carriers to align competitive class rates with the carrier¡|s business goals by providing the proper foundation for lane rates allowing optimization of rates in a manner that provides the highest revenue per lane.

Continental TruRate: an LTL rate base engine for rating carrier and neutral rate bases. This product and its library of several hundred carrier bases are available as software or a web service. Continental Transit Information Services: A web 2.0 services product that delivers access to information including transit time standards, detailed terminal information, direct/interline points of service, and more.

Continental Carrier GRI and Optimization Services: GRI optimization services that utilize our proprietary analysis and rating methodologies to enable customers to focus their process to the lanes that reap the most revenue.

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