Ocean Freight Signals Consumer Demand Shift
(6 October 2022 – United States) A strong consumer pullback is showing up in ocean shipping, with logistics managers recording a 20 percent drop in ocean freight orders for September and October.
The decline in demand cuts across many products, including machinery, housing, industrial and some apparel. According to logistics CEOs, the reason is a combination of too much inventory coupled with a lack of clarity on consumer demand.
The pullback in vessel capacity may continue into 2023 until demands pick up before Chinese New Year, which is in late January. Other data points which signal a decrease in orders are the outbound tender rejections.
"Right now we are tracking at 2019 levels and are down 80 percent from where we were a year ago. Looking at spot rates excluding fuel surcharges, we are currently 31 percent below where we were last year,” said Kevin Hill, Head of Communities and Research for FreightWaves.
Subscribe