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The economy is in a ‘freight recession,’ with China trade decline continuing

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1 year ago

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As the big East and West coast ports jockey for supremacy in total trade volume coming into the country, the pie is getting smaller as the economy softens.

The latest trade data from the Port of New York and New Jersey, the nation’s largest container port on the East Coast, points to a slight uptick in container processing but future ocean freight orders continuing to pull back.

In the month of March, the Port of New York and New Jersey handled 574,452 TEUs (20-foot equivalent units) making it the nation’s third-busiest port. But the difference between the Port of Los Angeles, which processed the most containers in March, and the Port of New York/New Jersey, was 48,781 TEUs.

In the first three months of 2023, the Port of New York and New Jersey was the nation’s second-busiest port moving nearly 1.8 million TEUs, similar to the amount moved during the same period in 2019.

A freight slowdown that has been in the data for months continues to be reflected in the activity. A recent CNBC supply chain survey analyzing inventories and warehouse space tracked a decrease in truck movements in and out of warehouses. This along with a 40 percent decrease in manufacturing orders foretells less freight movement by both truck and rail.

On trucking company JB Hunt‘s first-quarter conference call with analysts, president Shelley Simpson said the industry was in the midst of a “freight recession.”

Data from CNBC Supply Chain Heat Map provider FreightWaves SONAR details the weakness in the sector. When comparing current ocean freight orders leaving from all ports in the world and arriving at all ports in the United States, year over year, the levels are half. The decrease is felt both on the rails and roads with less freight coming into the country.

China’s manufacturing data has seen recent improvement out of its Covid reopening, but Peter Boockvar, chief investment officer of Bleakley Financial Group, says the overall trade data coincides with indicators of global economic contraction.

“We’re seeing contractions in global manufacturing PMIs [purchasing managers indexes] and I think it correlates to less spending on goods and the need to work down excess inventories,” Boockvar said.

“Consumers are still spending on experiences like travel, leisure, and restaurants but with respect to goods, it’s more of a spending focus on non-discretionary items and less on discretionary. This for sure filters through to less stuff being produced and thus transported,” he said.

Correction: The index in the Ocean Bookings chart is set so that “100 = Aug. 1, 2020.” An earlier version misstated that coordinate. Data on March 2023 container volumes at major U.S. ports was exclusively shared with CNBC. An earlier version of this story misstated the data’s availability.

 

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

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September 13, 2024

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TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

Statistics Canada reports wholesale sales higher in July

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September 13, 2024

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OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

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3 days ago

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September 12, 2024

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TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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