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Shippers Letter
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Export Update January/February 2004 |
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Wisconsin Excels at Exports
The Wisconsin Department of Commerce reports that: “Although there are plenty of "ifs" and "maybes" out there, the global economy seems to be turning a corner towards the better. Although analyst opinion is mixed, it may well be that 2004 will be the best year for global growth since 1996. Economic conditions appear to be improving in almost all geographic areas, including Asia, Japan, the United States, Central and Eastern Europe, Australia, and to lesser extents Western Europe and South America. Combine this with our competitive "low" dollar and 2004 looks like a potentially excellent year for Wisconsin exporters.” Included in this good news, the WI DOC has also stated that Wisconsin’s exports for the first eight months of 2003 were over $7.5 billion, up 10.86% over the same period in 2002. By contrast, total U.S. exports grew by 2.36% during the same period. All of our top ten markets are up by more than 10%. With the exception of instruments, which started the year slowly, Wisconsin's six key export sectors (74.5% of all Wisconsin exports) performed well above the national average.
Sector % of WI Exports, WI Export Growth, US Export Growth
Industrial Machinery 35.3% +15.9% -1.4% Instruments 13.6% + 1.8% +3.7% Transportation Equipment 8.9% +27.5% +3.4% Electrical Machinery 7.4% + 7.9% -2.3% Paper & Paper Products 5.2% + 8.0% +2.4% Plastics & Plastic Products 4.2% +10.6% +5.3%
Aqaba Surcharge
Due to deteriorating conditions and congestion at the Port of Aqaba, Jordan, all cargo received will receive a surcharge of $500. Expect transit delays and if possible move shipments to the alternate Port of Jeddah, Saudi Arabia.
GDP Increases Fastest in 20 Years
The third quarter of 2003 brought unexpected growth, the fastest in the last 20 years, to the U.S. economy. Fueled by stronger business and consumer spending, the Wall Street Journal reported that the Measure of Goods and Services Produced (GDP) in the U.S. rose 7.2%, more than twice that of the 2nd quarter (3.3%). In comparison, the first quarter grew at a pace of 1.4%. In addition, the Wall Street Journal reported that the GDP report “provides further confirmation that a real recovery (economic) has begun.” The outlook of trade also looked favorable by the end of the 3rd quarter of 2003, with exports up 9.3%, after being down 1% in the second. Imports rose up .1% the third quarter, after rising 8.8% in the second. It is expected that the fourth quarter GDP will continue at a 4% pace. |
New Passport Requirements
New passports will be required for entry into the U.S. for travelers from the 21 countries included in the U.S. Visa Waiver Program. The new passports, which will include chipped biographical information about the traveler, are considered tamperproof. For more information on the nations affected and passport requirements go to: http://travel.state.gov/vwp.html
Great Lakes Ferry
Scheduled to begin in May of 2004, Milwaukee will be linked to Muskegon, Michigan by an auto/passenger high speed ferry. The service is expected to run from May until December with two to three round-trips daily. The catamaran will carry up to 46 cars and 250 passengers, traveling up to 34 knots. For more information please visit the Port’s Web Site: http://www.port.mil.wi.us/ferrypress0703.html
Fuel Prices Increase
Most air carriers have increased their fuel surcharge to 15 cents per kilogram. The Security Surcharge remains at 13 cents for most carriers. These two surcharges at 28 cents per kilogram represent a substantial amount. We will keep you advised of any changes in future newsletters.
Cargo Security
The Department of Homeland Security announced a Cargo Security Initiative back on November 20, 2003. This will require certain amount of cargo to be scanned. The carriers warn that this will cause delays in the movement of cargo.
Federal Motor Carrier Safety Administration
The Federal Motor Carrier Safety Administration (FMCSA) introduced new regulations for Hours-of-Service. This is the amount of hours a truck driver is allowed to be behind the wheel without rest. Imposing stronger rules requiring more rest, FMCSA believes the number of fatigue related accidents and fatalities could be reduced.
As a result of these new regulations, the trucking industry expects trucking rates to increase an average of 4 - 7%. Shortages in drivers and equipment are also expected. We understand that the amount of time the driver has to wait to load and unload also is included in this new amount of time the driver is allowed behind the wheel. |
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