- China port congestion falls sharply
- trans-Pacific shipping rates retreat
- ships at anchor off Shanghai/Ningbo down nearly 50% over the past 18 days
- Chinese factories are being plagued by power outages that constrain export capacity
Trans-Pacific spot container rates have plateaued and in some cases pulled back, spurring speculation that container investors’ bull run has peaked and relief is on the way for U.S. importers says an article on Freight waves.
China port congestion falls sharply
The case for calling the top: Chinese container port congestion has dramatically declined over recent weeks, Chinese factories are being plagued by power outages that constrain export capacity, and U.S. consumer sentiment is faltering.
U.S. port congestion is historically high
The counterargument: U.S. port congestion remains historically high, rates were only temporarily reduced by China’s Golden Week holiday, data on declining rates is ambiguous because different indexes give different numbers, and there is a huge inventory restocking mountain to climb even after consumer sales slow.
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Source: Freight waves
