Logistics and Business Manufacturing: Economic Data Presents Mixed Views for Recovery

At a time when freight volumes remain depressed amidst the recession, coupled with reports indicating that the economy has “bottomed out,” it is very clear that those optimistic for a near-term recovery need to take a long-term view.

Some recent economic indicators for this sentiment include:

* A recent report from the Federal Reserve indicating industrial capacity usage in May, at 68.3 percent, hit a record low in May.
* Retail sales in May fell 4.7 percent year-over-year, according to the National Retail Federation.
* The U.S. trade deficit rose to $29.2 billion in April from $28.5 billion in March, with (adjusted for inflation) exports and imports down 4.3 percent and 2.7 percent, respectively.

The news is not all bad, though. Recently-released data from Panjiva, an online search engine with detailed information on global suppliers and manufacturers, notes that May represents the third consecutive month that there was an uptick in the number of global manufacturers shipping to the U.S. May saw a two percent bump, following gains of two percent in February and eight percent in March. Panjiva said this is the first time it has seen three consecutive monthly increases since it began tracking this metric in July 2007.

Even though these numbers are heading in the right direction, the company cautioned that last spring it also saw some uptick in the number of global manufacturers shipping to the U.S., leading to the possibility that there may be a seasonal component to these findings. Also, the company noted the two percent May gain is “modest,” with the recovery to pre-trade levels likely to be a while.

“We are seeing some encouraging signs, but there is still a low level of overall activity in an absolute sense,” said Panjiva CEO Josh Green in an interview. “It feels like the ‘deer in the headlights’ moment is over.”

Another positive, he noted, is that the sense of economic panic from earlier in the year seems to be gone, but there is still a long way to go. Companies continue to be cautious in their approach to placing orders, according to Green, and they are much more cognizant of the risks that are in their supply chains.

Read the rest of the scmr.com article here.

Trucking news: ATA reports that its For-Hire Truck Tonnage index is down 2.2 percent

ARLINGTON, Va.—In another sign that the economy still has a ways to go before it fully recovers, the American Trucking Associations reported this week that its tonnage index was down again in April for the second consecutive month.

The ATA said that its advanced seasonally adjusted For-Hire Truck Tonnage Index was down 2.2 percent in April, following a 4.5 percent decline in March. This index started the year fairly strong, with a 4.5 percent cumulative gain in January and March.

The ATA’s seasonally -adjusted index equaled 99.2 (2000=100), which represents its lowest level since November 2001. March’s index was also dismal at 101.4, which at that time was the lowest level it had seen since March 2002.

And its not seasonally adjusted (NSA) index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, was down 2.9 percent from March at 101.6. The ATA’s not seasonally adjusted index in March was up 10.2 percent over February at 104.7, indicating that fleets reported higher volumes in January. But ATA officials said that this gain falls short of the typical 15-20 percent increase that typically occurs from February to March.

Another sign that tonnage levels remain depressed is that tonnage contracted 13.2 percent year-over-year in April, representing the worst year-over-year decrease of the current cycle and the largest drop in 13 years, according to the ATA. This comes on the heels of a 12.2 percent annual contraction from March 2009 to March 2008.

Bob Costello, ATA Chief Economist, said truck tonnage is being impacted by the recession and the massive inventory correction that the supply chain is currently undergoing.

Read the rest of the logisticsmgmt.com article here.

Global logistics/supply chain management: Swine Flu may give shippers one more worry

- Interesting article from logisticsmngmnt.com

WASHINGTON—Transport and logistics analysts are questioning many of the measures now in place to respond to this latest health threat.

While not addressing supply chain concerns specifically, Department of Homeland Secretary, Janet Napolitano, said both the U.S. and Mexican governments are taking steps to reduce the potential for further Swine Flu transmission.

“Our goal is simple,” she said, “to communicate information quickly and clearly for our citizens, to rapidly address any new cases that emerge, and to have the capacity to effectively limit the spread.”

At a press conference held yesterday, Napolitano said that increased surveillance efforts have resulted in the identification of new cases.

“Early identification is vitally important to the overall effort. In the event that additional cases or sites of infection occur within the United States we want to recognize them quickly and then respond rapidly with appropriate guidance for the public health community and the general public in the infected area,” she said.  “We also want to ensure medical surveillance and testing and the provision of medications and medical supplies are distributed where necessary.”

The recent Swine Flu outbreak highlights a need for supply chain resilience and vulnerability assessments, said industry analysts. The latest flu scare is just one example of the vulnerability to risk of offices, logistics facilities or back-office locations, whether in Mexico City or elsewhere,” said Philip Damas, division director, Drewry Supply Chain Advisors.

Read the rest of the article here.

What is 3PL (Third Party Logistics) ?

A third-party logistics provider (abbreviated 3PL) is a firm that provides outsourced or "third party" logistics services to companies for part, or sometimes all of their supply chain management function. Third party logistics providers typically specialize in integrated operation, warehousing and transportation services that can be scaled and customized to customer’s needs based on market conditions and the demands and delivery service requirements for their products and materials. (source: wikipedia.com)

United Warehouse Facilities specialize in:

• Food & Grocery Products
  
• Tobacco
  
• Electronics
  
• Candy
  
• Paper Products
  
• Medical Supplies
  
• Misc. Consumer Goods
  

All of our distribution and logistics facilities are :

• Single story tilt-up structures
  
• Equipped with numerous truck doors
  
• Rail served by UP or BN
  
• Easily accessible to and from the freeways
  
• Protected by automatic sprinklers and electronic security systems 
  

About United Warehouses

Founded in 1948, United Warehouses has been owned and operated by the same management team since 1974. Subsequent growth in operations necessitated the addition of two trucking companies and an increase in floor space from 70,000 to 700,000 square feet in the Seattle, Washington area.

Our services include:

• Third party logistics
• Public warehousing
• Contract warehousing
• Transportation (TL, LTL, Drayage, Retail Delivery)
• Consolidation
• Cross-docking 

For more information on our third party logistics and public warehousing facilities you can contact us at 206-682-4535 or simply complete our Bid Request form and we will promptly reply to your needs.