Business Intelligence-Buyers reporting transportation price hikes in May; Daily cost in mid-May to charter a capesize vessel; Decline in overall rail volumes so far in 2007 vs. 2006
By Staff -- Purchasing, 6/14/2007
74%Buyers reporting transportation price hikes in May
Source: www.purchasingdata.com
WHAT IT MEANS: That's up from 68% in April and 54% in March, indicating transportation costs are rising in 2007. Buyers need to review each mode individually, however, as pricing trends vary across the modes.
$114,537Daily cost in mid-May to charter a capesize vessel
Source: Baltic Exchange
WHAT IT MEANS: If that sounds expensive, it's because it is. It's a record high, as ocean freight rates continue to go through the roof on continuing demand for ocean freight from China and India. Bloomberg says ocean cargo rates have increased as much as 67% since the start of 2007.
3%Decline in overall rail volumes so far in 2007 vs. 2006
Source: Association of American Railroads
WHAT IT MEANS: It was only two quarters ago that rail volumes were increasing by this amount. But Bear Stearns analysts don't expect rail volumes to pick up in the short-term.
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