The price of sea freight between China and the USA collapses. The economic crisis is among us
The period between Labor Day and Christmas in the US is typically the peak of the shipping season. This year there is no peak and no peak is to be expected, because the economic situation is not good, indeed consumption appears stagnant. We are beginning to see how the wait in front of the Californian ports has now collapsed. The ships arrive and, after a while, they unload.
Descartes Datamyne, a data analytics group owned by supply chain software company Descartes Systems Group Inc. says U.S. container imports in September were down 11 percent from the previous year and 12 percent , 4% compared to August . A beautiful and good collapse.
According to Sea-Intelligence, shipping companies have canceled between 26% and 31% of their sailings across the Pacific in the coming weeks.
In September 2021, the average cost of shipping a container from Asia to the west coast of the United States exceeded $ 20,000. Last week, the average cost of shipping a container from Asia to the US West Coast was down 84% from the previous year to $ 2,720.
Why did prices drop? Simple, there is no demand, goods are not moving, so there is an excess of supply and prices are falling. The last time the Port of Los Angeles handled so few imported containers in September was during the Great Financial Crisis. Here is what was the decrease compared to previous years:
2022 vs. 2021: -26.6%
2022 vs. 2020: -27.2%
2022 vs. 2019: -14.6%
2022 vs. 2018: -17.1%
2022 vs 2017: -11.6%
Here is a Tweet with full transports
The real reason that supply chain constraints are easing is because far fewer goods are moving through the supply chain. The last time that the port of LA handled so few loaded import containers in September was during the Great Financial Crisis. https://t.co/faRSdXRz53 pic.twitter.com/aN0JZv1mud
– Craig Fuller
(@FreightAlley) October 22, 2022
The last positive comparison with the other years dates back to September 2009, after the great recession. Thus the volume of goods transported between the two sides of the ocean has returned to the levels of the great crisis. I do not think it is necessary to add much to understand, and make it clear, that even the US is dangerously approaching an economic crisis with a very significant drop in consumption.
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The article The price of sea freight between China and the USA collapses. The economic crisis is among us comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/crolla-il-prezzo-dei-noli-marittimi-fra-cina-e-usa-la-crisi-economica-e-fra-noi/ on Tue, 25 Oct 2022 07:00:00 +0000.