newsworthy
Diesel-use index rises in November
A monthly index that gauges economic activity by tracking truck drivers’
fuel purchases rose in November after three consecutive down months, an
improvement that still does not persuade the index’s keepers that sustain-
able economic gains are imminent.
The Ceridian-UCLA Pulse of Commerce Index (PCI), published by
UCLA’s Anderson School of Management, is based on data from fuel
credit cards swiped by drivers as they fill their rigs. The database, created
by Ceridian Corp., a human resource, payroll, and benefits specialist, captures and analyzes the location and volume of fuel being purchased as a
way of measuring the flow of goods to U.S. factories, retailers, and consumers. Because the data are tracked in real time, UCLA and Ceridian say,
the index paints an accurate picture of product flow across the United
States and, by extension, overall economic activity.
The index grew 0.4 percent in November after three straight months of
decline. However, the November data were not strong enough to make up
for the PCI’s 0.6-percent decline in October or the 2.1-percent decline
experienced since July, according to the managers of the index.
“While the PCI’s most recent data shows growth, it is not substantial
enough to offset the loss from the third quarter,” said Ed Leamer, chief PCI
economist and director of the UCLA Anderson Forecast, in a statement. “In
short, November’s ‘up’ is relative to a low bar, so the growth is only mildly
encouraging. The flatness we’re seeing with the latest PCI data reflects
inventories in motion, which seem to be signaling a weak fourth quarter.”
Year over year, the PCI increased 4. 5 percent in November, representing
the 12th straight month of annualized growth. This is slightly above the
growth rates from 2004 to 2006, but below levels required for a rapid
recovery to the previous peaks in 2007–2008 and an equally swift return
to trend growth, the index managers said.
“There has been less anxiety about the economy in recent months, but
markets are still fragile,” said Craig Manson, senior vice president and
index expert for Ceridian, in a statement. “We still have not seen evidence
of enough growth to instill confidence in the economic outlook for the
fourth quarter and early 2011.”
The index also showed that five of the nine Census regions showed
growth in November, compared with only one region in October. The
Pacific and Mountain regions exhibited the strongest month-over-month
growth, according to the index. ;
they said it:
Slow steaming doesn’t get
me where I need to go.
— Rick Jackson, executive vice president, logistics for Limited Brands Inc.,
commenting on the negative impacts of a steamship line practice known
as “slow steaming,” where carriers reduce their vessel speed to save fuel
and reduce carbon emissions. Many logistics executives complain the
practice lengthens transit times and disrupts their supply chains.
“”
ground breakers
; Supreme Lobster & Seafood Co.
has purchased a 101,088-square-foot
freezer/cooler and distribution facility in Bolingbrook, Ill., from Grubb &
Ellis Co. Built in 2004, the facility has
a freestanding freezer building with
73,000 square feet of space as well as
12,600 square feet of refrigerated
dock space.
; California-based American Condenser and Coil is opening its first
East Coast distribution center in
Suffolk, Va. The new 50,000-square-
foot facility is located at the
Northgate Logistics Center.
; A new distribution center is being
built in Afghanistan to support U.S.
troops in the region. The Joint
Distribution Management Center at
Bagram Air Field will allow consignees to obtain timely, accurate
information on the status of their
cargo at one centralized location.
; JLA Home, a company that specializes in home furnishing products, is
moving its assembly and distribution
operations to a new site in
Savannah, Ga. The 689,400-square-
foot building will serve as the company’s East Coast distribution center.
; BlueCross BlueShield of Tennessee
has signed a lease with JDK Real
Estate, a member of the Kenco
Family of Companies, for 81,000
square feet of improved warehouse
space in Chattanooga, Tenn.
BlueCross will consolidate operations from two other sites at the new
facility.
; American Realty Advisors has
announced that it has acquired
Jasmine Distribution Center, a soon-to-be-renovated 402,539-square-
foot industrial warehouse/distribu-tion property in Fontana, Calif., in a
joint venture with BlackRidge Real
Estate Group.
