Container Backlogs Switch to Empty Containers
(3 October 2022 – Global) Multiple shipments from Asia to US ports may be cancelled in October as rising economic headwinds dent demand to ship goods cross border.
Trans-Pacific shipping rates have declined by roughly 75 percent year-on-year. The logistics sector is struggling with weaker demand as major retails flip from inventory shortages to oversupply, cancelling orders with suppliers and aggressively managing inventories.
“In the first week of October, one-third of previously announced capacity will be blanked and for the second week, it will be around half. The downturn pace in recent weeks has been very fast and it looks like carriers misread the low volumes of a non-existent peak season” commented Xeneta Chief Analyst, Peter Sand.