Freight News: Lots of Positive Signs

Ray of sunshine numbers, courtesy of Mark J. Perry, CARPE DIEM – Ilene

Freight News: Lots of Positive Signs

385080 01: A Canadian National freight train idles as it waits to cross a Wisconsin Central railroad bridge February 1, 2001 near Rosemont, IL. Canadian National Railway Co. has reached a deal to buy Wisconsin Central Transportation Corp., for $800 million in cash. Wisconsin Central, based in Rosemont, IL., has 2,850 miles of track and track rights in Wisconsin, Illinois, Minnesota, Michigan's Upper Peninsula, and Ontario. The deal announced January 30, 2001 would 'secure a link' connecting Chicago and Superior, Wis., to Canadian National's network across Canada, Canadian National said. The rail industry in the United States had been going through a whirlwind of consolidations, some of which created severe traffic disruptions. Last year, U.S. regulatory authorities rejected Canadian National's plan to merge with Burlington Northern Santa Fe railway to create North America's largest rail company in a deal worth $6.2 billion. (Photo by Tim Boyle/Newsmakers)

1. Passenger traffic at Los Angeles International Airport (LAX) increased by 4.1% in September above last year, and 5.2% above September 2008. The 4.7 million passenger count in September was the highest for that month since the 4.8 million passengers in September 2007.

Freight traffic at LAX in September was 8.1% higher than last year, and 10.3% above the same month in 2008. The 157,466 tons of air freight this year was 8.6% below the 172,238 tons in the pre-recession month of September 2007.

2."The volume of containers handled by the Port of Savannah in October increased 16.7 percent to 273,296 20-foot equivalent units compared to the same month last year.The overall total of freight handled by all Georgia ports reached a new monthly record of 2,347,260 tons, which represented an increase of 9.8 percent compared with last October."

3. The ports of Los Angeles and Long Beach recorded strong growth again in October, indicating that the peak-shipping season in the trans-Pacific this year had some staying power. Containerized imports in Long Beach were up 33.5 percent compared to October 2009. Imports were up 5 percent over September 2010. Imports in Los Angeles increased 3.19 percent compared to October 2009, which was the strongest month for imports last year. Imports in Los Angeles were down 7 percent from September 2010.

October was the busiest month of the year so far for exports from Long Beach. Exports increased 26.3 percent compared to October 2009, and they were up 9 percent over May, which was the previous high point in 2010. Exports in Los Angeles were flat compared to October 2009, but exports were up 8 percent from September 2010. See related post here by Scott Grannis.

4. Shipping volume at the Port of Seattle was up by 18.5% in October compared to the same month last year, following double-digit percentage gains in every month this year. The number of fully loaded outbound containers in October of 55,552 was the highest for the year, and the highest in a single month going back to at least 2008.

5. Total tonnage at the Port of Portland increased in September by 14% above last year, and year-to-date total tonnage at Portland is 36% above last year.

Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at theUniversity of Minnesota. Perry is currently on sabbatical from the University of Michigan and is a visiting scholar at The American Enterprise Institute in Washington, D.C.