Continued Improvements in Global Shipping
Scott Grannis posted an update yesterday on the continuing improvement in various global shipping indexes, which provide more support that a global economic rebound in underway. A new report from the Port of Los Angeles provides additional support that both global shipping and the global economy are rebounding. On a three-month moving average basis, outbound export containers reached a 19-month high in April of 156,000 TEUs, the highest level since September 2008 (see chart above). Other highlights of yesterday's L.A. Port report for April:
1. Overall shipping volume is up 11.9% vs. April 2009.
2. Volumes are returning back to the Port following the economic downturn in 2008-09. While volumes are encouraging, it's important to note that total cargo volumes are still off significantly from 2007 highs.
3. Imports are climbing, leading to the need to replace and vacate empty containers from Los Angeles. Exports are up due to the value of the U.S. dollar.
4. New services and larger vessels are being added by the shipping lines.