In this file:

·         One Price Dodging Inflation: China-to-U.S. Shipping Rates

Freight costs are down by a third since the start of the year as some importers cut orders

 

·         China's lockdowns are now impacting global freight rates

… spot rates for the U.S. gulf to China dipped to $78 dollars per metric ton which is down $1.50 on the week…

·         Chinese manufacturing orders decline by 20-30%, according to shippers, as consumers pull back on buying goods

.. A DHL executive described it as a tipping point for the “ship at any cost” economy that has recently dominated in the U.S. amid high consumer demand…

 

·         No surprise: Report finds logistics costs spiked in 2021

Logistics costs as a percentage of GDP hit highest level in 13 years, State of Logistics Report says

 

 

One Price Dodging Inflation: China-to-U.S. Shipping Rates

Freight costs are down by a third since the start of the year as some importers cut orders

 

By Costas Paris, The Wall Street Journal (WSJ)

June 22, 2022

 

Shipping prices have cooled in recent months as some U.S. importers temper merchandise orders amid concerns about elevated levels of inventory and uncertainty about continued strength in consumer spending.

 

Freight rates from China to the U.S. West Coast stood at $9,585 a box last week, down 34% from the start of the year and 50% from a year earlier, according to the Freightos Baltic Index. Those rates, however, are more than four times higher than in June 2020, and industry observers expect them to remain above prepandemic levels through at least 2023...

 

more, with subscription

https://www.wsj.com/articles/one-price-dodging-inflation-china-to-u-s-shipping-rates-11655890200

 

 

China's lockdowns are now impacting global freight rates

 

By James Ferguson, RFD-TV

June 19th 2022

 

China's COVID-19 lockdowns have been increasing fears of a global economic slowdown, and now it is taking a toll on freight rates.

 

Dry bulk freight rates from Brazil to China dipped to $68 dollars per metric ton, which is down more than a dollar from last week. Cargoes heading to the western Mediterranean moved down to $34 dollars which is a decrease of 75 cents.

 

In the U.S., spot rates for the U.S. gulf to China dipped to $78 dollars per metric ton which is down $1.50 on the week. From Canada to China, rates decreased to just over $45 dollars which is down $1.25.

 

document, plus video report [0:38 min.] 

https://www.rfdtv.com/story/46717042/chinas-lockdowns-are-now-impacting-global-freight-rates

 

 

Chinese manufacturing orders decline by 20-30%, according to shippers, as consumers pull back on buying goods

 

o   Chinese manufacturing orders are down by as much as 30% for some logistics companies as consumers shift spending to services.

o   A DHL executive described it as a tipping point for the “ship at any cost” economy that has recently dominated in the U.S. amid high consumer demand.

o   Vessel volumes continue to grow at U.S. East Coast and Gulf Coast ports including Savannah and Houston, according to the CNBC Supply Chain Heat Map, as labor talks on the West Coast threaten to cause more supply chain issues.

 

o   Lori Ann LaRocco, CNBC

Jun 21 2022

 

Chinese manufacturing orders are reportedly down by as much as 20-30%, according to logistics sources responsible for moving the finished products from Chinese manufacturing plants to the Chinese ports.

 

“As consumers move from purchasing stuff to buying services, importers continue to work on balancing order flow with sales expectations,” said Alan Baer, CEO of OL USA. “Some industries are forecasting purchase order reductions of 20 to 30 percent, while others see no interruptions in their order flow. Overall, the risk appears to be to the downside. The decrease appears tied to economic uncertainty and not the migration of operations out of China.”

 

It is important to note even with this decrease in orders, the number of orders is still above pre-pandemic levels.

 

This order decrease will have no impact on the current container volumes leaving China bound for the United States...

 

more

https://www.cnbc.com/2022/06/21/chinese-manufacturing-orders-drop-as-consumers-pull-back-on-goods.html

 

 

No surprise: Report finds logistics costs spiked in 2021

Logistics costs as a percentage of GDP hit highest level in 13 years, State of Logistics Report says

 

Mark Solomon, FreightWaves

June 21, 2022

 

The 33rd annual State of Logistics Report, the year-over-year report card of the U.S. business logistics system, confirmed empirically what everyone already knew: 2021 was nirvana or a nightmare depending on what one does for a living.

 

Total logistics costs, which measure how much was spent on transportation, warehousing and ancillary services such as support and administrative, soared 22.4% last year to nearly $1.85 trillion, according to the report. That was equal to 8% of the U.S. GDP, a level not seen since 2008, said the report, which was released by the trade group Council of Supply Management Professionals (CSCMP) Tuesday morning.

 

Demand spiked across every mode and service. Businesses desperate for reliable motor carrier capacity powered a 39.3% jump in spending on private fleets or dedicated contract carriage to $415.2 billion. Inventory carrying costs jumped 25% to $502 billion as surging warehouse demand and supply chain congestion filled facilities to overflowing. The capital costs of carrying mountains of inventory jumped 33.4%.

 

Spending on waterborne services surged 23.6% as ocean carriers leveraged massive rate increases on international sea routes to make more money in 2021 than in the prior 20 years combined, the report said...

 

more

https://www.freightwaves.com/news/no-surprise-report-finds-logistics-costs-spiked-in-2021