Manufacturing orders from China down 40% in demand collapse
U.S. manufacturing orders in China are down 40% in what a logistics manager described to CNBC as an unrelenting demand collapse.
Carriers have been executing on an active capacity management strategy by announcing more blank sailings and suspending services to balance supply with demand. "The unrelenting decline in container freight rates from Asia, caused by a collapse in demand, is compelling ocean carriers to blank more sailings than ever before as vessel utilization hits new lows," said Joe Monaghan, CEO of Worldwide Logistics Group.
Supply chain research firm Project44 tells CNBC that after reaching record-breaking levels of trade during the pandemic lockdowns, vessel TEU volume from China to the U.S. has significantly pulled back since the end of summer 2022 — including a decline of 21% in total vessel container volume between August and November.Asia-based global shipping firm HLS warned clients in a recent communication about the ocean transport business climate.It seems to be a very bad time for the shipping industry.
The large West Coast ports of Los Angeles and Long Beach have experienced the largest drop in trade, according to Josh Brazil, vice president of supply chain insights at Project44, as shippers alsoto the East Coast to avoid the risk of a major union strike at West Coast ports.
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