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Mixed messages as Shanghai port reboots back to normality

Author: Posttime:2022-06-16 10:03:00

MIXED messages on demand are occurring throughout the shipping industry as Shanghai reopens and the feared congestion and chaos of peak season may not materialise, reports the American Journal of Transportation.

Still, National Retail Federation (NRF) Projections for imports throughout the summer remain elevated and ocean spot rate futures and contract rates remain high too.
Changes in inventory and spending are signs that things are changing, but there is enough demand and congestion to increase delays and ocean rates as Shanghai reopens.
Taken together, this mix of competing indications may signal the start of a gradual return to normal.
Meanwhile, Asia to US west coast prices fell 11 per cent to US$9,574/FEU. This rate is just nine per cent higher than the same time last year.
While some measures record a drop in orders for US-bound imports in April and May, April volumes were five per cent higher than last year.
May and June volumes are projected to be higher than April, 7.5 per cent greater than in 2021, and tied for the third-highest monthly volumes on record, with July and August not far behind.
Regardless, consumer spending shifts are new developments and signs that inflation and the wane of the Covid crisis in the west are changing the market.
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