@Risk

Piracy concerns continue to plague shippers, and industry analysts now estimate that maritime piracy and armed robbery at sea cost the global economy between $7 and $12 billion each year.

Over the past few months, I’ve noticed more headlines in the news, as government agencies, international naval forces, the UN and even private firms announce plans to enhance efforts to help ensure safe passage of merchant ships in the Arabian Sea and Indian Ocean.

For example, a few weeks ago, the United Arab Emirates Ministry of Foreign Affairs and DP World hosted a high-level conference called Global Challenge, Regional Responses: Forging a Common Approach to Maritime Piracy.  The final declaration from this conference acknowledges that piracy is expanding and represents a threat to all nations.

In addition, on April 11, the UN Security Council adopted yet another resolution addressing piracy off the coast of Somalia. The tenth such resolution since 2008, Resolution 1976 calls for a comprehensive strategy for anti-piracy law enforcement, including “consistent with applicable rules of international human rights law, measures aimed at facilitating the transfer of suspected pirates for trial, and convicted pirates for imprisonment, including through relevant transfer agreements or arrangements.” (more…)

Even though optimism about the economy remains tempered by stubbornly high unemployment rates, the National Retail Federation predicts that the 2010 holiday retail season will surpass expectations and lead to retail sales that will rival 2007 levels by mid-year.

Other experts have a similar positive outlook, and according to The Journal of Commerce, some analysts now forecast US containerized ocean imports and exports in trans-Pacific trade to return to pre-recession levels in 2011. More specifically, forecast numbers from PIERS, a sister company of The Journal of Commerce, predict U.S. container imports from Asia will rise 7.7 percent next year to 13.4 million 20-foot equivalent units – nearly in line with the 2007 peak of 13.6 million TEUs. Trans-Pacific exports are expected to grow by 4 percent to 6.4 million TEUs.

The growth follows an estimated 15.5 percent increase in U.S. trans-Pacific imports in 2010 and a 4.3 percent increase in exports in 2010. Most see this uptick as a shift in attitude: supply chain managers are moving from cautious optimism to stronger confidence in demand.

“Our forecast is positive but moderate,” Mario O. Moreno, economist for PIERS and The Journal of Commerce, said. “We look for growth in containerized imports and exports ahead, but there are many risks.”

Last week, The Journal of Commerce also reported that other indicators of future economic activity are also pointing toward growth. According to the article: (more…)

The World Shipping Council (WSC) and the International Chamber of Shipping (ICS) want all loaded containers be weighed at the marine port facility before they are stowed aboard a vessel for export.

In a joint statement issued last week, the WSC and ICS urge the International Maritime Organization (IMO) to establish an international legal requirement that all loaded containers be weighed at the marine port facility before they are stowed aboard a vessel for export.

According to the WSC and ICS, In the absence of a legal requirement that marine terminal operators perform a weighing function for all loaded (“stuffed”) containers before vessel loading, it seems likely that a significant number of unweighed and overweight containers will continue to pose a risk to safe ship operations, to ships’ crew, and to other personnel in the transport chain. In addition, overweight containers threaten operational reliability and add to liability claims, operating costs, and administrative expenses.

Specifically, WSC and ICS propose that: (more…)

The Boeing World Air Cargo Forecast 2010/2011 predicts that world air cargo traffic will expand at a 5.9 percent annual rate over the next two decades, with worldwide air freight traffic expected to triple through 2029.

Released earlier this month, Boeing’s biennial report reveals that air cargo traffic rebounded strongly beginning in November 2009, and then continued on an upswing through the first eight months of 2010. As a result, Boeing predicts that world air cargo traffic will regain its 2007 peak by the end of this year.

(more…)

Trucks are the most-used mode to move freight — especially for distances less than 500 miles –and even though there were declines in 2008 and 2009, new figures from the US Department of Transportation’s Federal Highway Administration (FHWA) indicate a return to growth in 2010.

The new data, released in the FHWA Freight Analysis Framework, shows that tonnage will continue increasing 1.6 percent per year, reaching 27.1 billion tons by 2040 –that’s a 61 percent increase in tons between 2010 and 2040.

In 2007, nearly 18.6 billion tons of goods worth about $16.5 trillion were moved on the transportation network, which equates to 51 million tons of goods valued at more than $45 billion a day moved throughout the country on all transportation modes. (more…)