OECD Area Shows Strong Q4 Growth
Leading industrialized countries grew "strongly" in the fourth quarter of 2009, driven by the United States and Japan, while the eurozone's momentum slowed, the Organization for Economic Cooperation and Development (OECD) reported last Wednesday.

According to the OECD, seasonally adjusted gross domestic product (GDP) in the OECD area rose from 0.6 percent in the third quarter of 2009 to 0.8 percent in Q4 2009. Real GDP grew by 1.4 percent in the U.S. and 1.1 percent in Japan. GDP growth in the euro area slowed to 0.1 percent in the fourth quarter, down from 0.4 percent growth in the third quarter.

For all of 2009, GDP for the 30 OECD members fell by 3.4 percent, the first decline since records began in 1960.

Spot Freight Market Expands in January
The spot freight market continued to make year-over-year gains in January, signaling that the freight transport sector has improved over its prior-year levels. However, monthly declines may pose a concern in the near-term future.

According to the latest freight index from transportation systems firm TransCore, released last Tuesday, freight availability in North America was 54 percent higher in January 2010 than in January 2009. Last month marked the fourth consecutive month of year-over-year improvement for the spot freight market.

Despite the year-over-year gain in January 2010, there was a month-to-month decline of 38 percent in spot market freight availability from December 2009 to January 2010. Although this decrease exceeded the average historical rate of decline for the season, "the gap can be attributed to December's unusually high level of spot freight availability rather than unseasonal weakness in January," the report said.

TransCore's data is based on measurements of truckload freight volumes found on load boards within the DAT network, a load-matching system that handles over 50 million trucks and loads per year.

Cargo Theft Rate Climbed in 2009
As freight cargo rates started to rise in 2009, so did the rate of cargo theft. New reports show that stolen cargo is a growing concern for transportation companies due to elevated theft in 2009, and both businesses and law enforcement agencies are examining ways to curb the threat.

According to a January report from FreightWatch International, an average of 72 cargo theft incidents per month was recorded in 2009, with 859 incidents in total — a 12 percent increase over the previous year. The majority of such incidents were full truckload thefts, while the remainder involved warehouse burglaries (4.1 percent) and hijackings (less than 2 percent).

FreightWatch International found that by volume, the largest targets for cargo theft last year were electronics (23 percent); food and drinks (20 percent); home and garden products (10 percent); and building and industrial supplies (9 percent).

A report from LoJack Supply Chain Integrity estimated the total value for lost cargo and vehicles in 2009 was $134.9 million, coming to roughly $220,782 per incidents. The LoJack report tracked 680 incidents of cargo-related crime in 2009, nearly double the number recorded in its 2008 findings.

In addition to existing crime-prevention methods, a new information-sharing database was introduced early this month to help cut down on cargo theft. The database, known as CargoNet, coordinates crime data among shippers, carriers, insurers and law enforcement agencies.

"Information sharing is the key in the battle against cargo thieves," Maurizio Scrofani, managing director of CargoNet, told commercial trucking journal FleetOwner. "It not only allows law enforcement to react faster when thefts occur, it helps develop intelligence as to where thefts are occurring, what goods are being stolen, plus what modes and/or freight lanes are being targeted. Information also helps transport providers identify where they should deploy the greatest security — to be proactive instead of reactive to cargo theft trends."

Federal Funding Headed to New Nuclear Energy
President Obama announced last week that his administration will encourage a boost in U.S. nuclear energy production, saying that the Department of Energy has offered conditional commitments for a total of $8.33 billion in loan guarantees for the construction and operation of two new nuclear reactors at a plant in Burke, Georgia.

"When the new nuclear reactors come on line, they will provide reliable, base-load electricity capable of serving about 550,000 residences or 1.4 million people," according to the Energy Department.

In the announcement, Obama portrayed the decision as part of a broad strategy to increase employment and clean-power generation, saying, "If we fail to invest in the technologies of tomorrow, then we're going to be importing those technologies instead of exporting them. We will fall behind. Jobs will be produced overseas instead of here in the United States of America."

Following the president's announcement, the National Association of Manufacturers (NAM) commended the Obama administration, saying the actions "will give a much-needed boost to U.S. manufacturing while creating thousands of high-paying jobs." According to NAM estimates, adding a new nuclear plant can add $500 million annually to the economy, and, "once a nuclear plant is up and running it can generate between 400 and 700 jobs locally," NAM President John Engler said in a statement.

However, the United Steelworkers Union warns that the government-backed nuclear reactor plan could create jobs overseas. In a letter sent to the Nuclear Regulatory Commission (NRC), the international president of the union said that he was concerned about "the potential foreign sourcing of components for these reactors," which he said "limits our nation's ability to address our unacceptably high unemployment rate."

Obama is "casting the nuclear initiative as a centerpiece of his plan to produce clean-energy jobs, although construction on the two reactors would not begin for more than a year," the Washington Post explains. Despite the financing, the reactors' design has not yet been fully approved by the NRC, according to the New York Times.

If it moves forward, the project will be the first U.S. nuclear power plant to break ground in nearly three decades.