Transportation Roundup: Container ag exports down, rates up

Containerized U.S. agricultural exports dropped to the lowest first-half volume since 2016, with four West Coast ports recording the largest declines. Soybean exports suffered the largest declines in sales. Lower demand from China, as well as more competition from other exporting countries, are largely to blame for the decline.

The first half of 2023 saw a 13.6% drop from 2022 and the USDA projects overseas ag sales for the 2023 fiscal year at $177.5 billion, down 10% from 2022. Read more from the Journal of Commerce.

Both spot and contract rates for U.S. exports, however, are still up from pre-pandemic levels. The World Container Index assessed spot rates from Los Angeles to Shanghai at $838 per 40-foot equivalent unit (FEU) which is still up 66% from five years ago. Spot rates for imports are slightly down from five years ago. Read more from Freight waves here.

On the railroad, there have been several new services recently announced. Canadian National (CN) and Norfolk Southern are launching a domestic intermodal service beginning Oct. 2 to help Upper Midwest and Canadian markets reach the Southeastern U.S. The new service will use steel-wheel interchanges in Detroit and Chicago so that CN customers can reach Atlanta and Kansas City, Mo., markets via Norfolk Southern. Read more here.

On the East Coast, CSX rail and the Georgia Ports Authority recently announced an intermodal service providing direct rail between the Port of Savannah and Rocky Mount, N.C. The service will run seven days a week and includes a three-day ship-to-shore transit time. Learn more here.