Let’s review shipping updates from Craig Fuller, Founder/CEO of FreightWaves and American Shipper.
Shanghai image from a Tweet embedded below
Vessels Waiting to Enter Port of Shanghai
Video Images of Shanghai
Shanghai Covid Lockdown
China About to Wreck Your Summer
“The coming volume drop in ocean container volumes (TEUs) leaving China for US ports is staggering. Our Ocean TEU Volume Index in SONAR now has a 14-day forward look at volumes, and it looks ugly. By early May 2022, we could see the lowest levels we’ve seen since May of 2020.”
What About Kitchen Appliances?
“A large private consumer kitchenware manufacturer told me that they have seen a large contraction in demand over the past 8 weeks.”
Question of the Day
Is the slowdown in Shanghai at all welcome? That’s the big question.
To the extent US merchants have ordered too much inventory in the face of falling demand, perhaps.
But Fuller notes there are just too many questions. For starters, what is China doing? Every other country on the planet is loosening restrictions.
What’s really going on?
What About the UK?
Meanwhile, Back in the States
“Truckload contract load volumes dropped 4.5% this week. 7th consecutive week of declining contract truckload volumes. Next week is EOM, hoping for an uptick.”
More Deflation Calls
Recession Level Trucking Demand
I believe you get the idea, shipping is a mess and there is a slowdown as well. A US housing bust is underway.
But here’s an important point about deflation and recession: When Fuller makes a recession or deflation call, it is specifically about the trucking industry, not an overall assessment.
He made that point clear in my video interview of Fuller that I posted on April 14.
See MishTalk TV with the CEO of FreightWaves: Trucking Recession or the Real Deal? for the video and discussion points.
Whereas he comments on the trucking industry, I am willing to go further. A very hard landing is on the way.
Thanks again to Craig Fuller for the interview and all of his Tweets.
For my stock market update, please see Expect More Stock Market Pain Because It’s Coming
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