For the week ending April 17, total inspections of corn (1.53 mmt) for export from all major port regions inspections remained strong, increasing 7 percent from the past week and up over 300 percent from last year.
Compared to the previous week, shipments of corn increased to Latin America and Africa. Corn inspections were also 108 percent above the 3-year average.
Total inspections of grain (corn, wheat, and soybeans) for export reached 2.19 million metric tons (mmt), down 11 percent from the past week, 90 percent above last year, and 15 percent above the 3-year average.
Wheat inspections dropped 31 percent from the previous week. Inspections of soybeans, which dropped 49 percent from the past week, continued to fall because of slower demand from China.
Outstanding (unshipped) export sales also continued to fall for corn, wheat, and soybeans.
Bulk Ocean Freight Rates Fall
Ocean freight rates for shipping bulk grains declined to their lowest levels during the past seven and half months amid softened grain vessel loading activity in the U.S. Gulf, Chinese cancellation of soybean cargoes, and low market activity due to the Easter Holiday.
As of April 17, the rate for shipping a metric ton of grain from the U.S. Gulf to Japan was $47.50, down 5 percent from the pre vious week. The rate for shipping from the Pacific Northwest (PNW) to Japan was $26.50 per metric ton, down 2 percent from the previous week. The last time the Gulf-to-Japan rate was this low was September 6, 2013. The last time for the lowest PNW-to-Japan rate was August 30 of the same year.
Meanwhile, as of the week ending April 17, the number of grain vessels loading or waiting to be loaded in the U.S. Gulf was 50, compared to a weekly average of 75 vessels for the previous 12 weeks. The number of vessels expected within the next 10 days is 40, also less than the expected average of 70 vessels for the previous 12 weeks.
Upper Mississippi Opens for Season with Ample Barge Supply
On April 16, The U.S. Army Corps of Engineers reported the start of the 2014 Upper Mississippi River navigation season when the first barge tow transited Lock and Dam 2, near Hastings, MN. The earliest date for an upbound tow to reach Lock and Dam 2 was March 4, in 1983, 1984, and 2000.
The navigation season was delayed this year due to historic ice thickness on Lake Pepin, south of Red Wing, MN. The average start date of the navigation season is March 22.
For the week ending April 12, 838 barges moved upbound through Mississippi River Locks 27, of which 449 were empties and 163 contained fertilizers. Over the past several weeks, barge supply on the Upper Mississippi has increased significantly because of the upbound fertilizer movements and repositioning of empty barges. The increased supply has caused a general decline in barge rates.
TSA Implements New Technology for TWIC Program
Transportation Security Administration is upgrading its technology to improve reliability, expand capabilities, and more effectively support its mission.
During the system upgrade, specific Transportation Worker Identification Credential (TWIC) card services will be temporarily unavailable: services for Card Transfers, Card Replacements and Extended Expiration Date (EED) TWIC are now unavailable through Sunday, May 4th, 2014; and Card Pick-Up, Activation and Personal Identification Number (PIN)
Resets will be unavailable from Saturday, April 26th through Sunday, May 4th, 2014. All enrollment sites will be open and available. For more detail visit, www.tsa.gov/twic.
Snapshots by Sector
- Rail U.S. railroads originated 20,760 carloads of grain during the week ending April 12, up 5 percent from last week, 21 percent from last year, and 3 percent from the 3-year average. During the week ending April 17, average May non-shuttle secondary railcar bids/offers per car were $2,500 above tariff, up $1,725 from last week and $2,500 higher than last year. Average shuttle secondary railcar bids/offers per car were $1,500 above tariff, up $950 from last week and $1,712.50 higher than last year.
- Barge During the week ending April 19, barge grain movements totaled 672,445 tons–5 percent lower than the previous week but 182.8 percent higher than the same period last year. During the week ending April 19, 441 grain barges moved down river , down 2.2 percent from last week; 623 grain barges were unloaded in New Orleans , down 7.8 percent from the previous week.
- Ocean During the week ending April 17, 49 ocean-going grain vessels were loaded in the Gulf, 69 percent more than the same period last year. Forty vessels are expected to be loaded within the ne xt 10 days, 29 percent more than the same period last year.
- Fuel During the week ending April 21, U.S. average diesel fuel prices increased 2 cents from the previous week to $3.97 per gallon–up 8cents from the same week last year.
