Coronavirus restrictions hit shipping, spreading global economic strain - February 2020 - but wait....December 2022: Freight rate from China drops 90%

[Commonground]

By BENOIT PELEGRIN
Today, 8:01 pm

LONDON, United Kingdom (AFP) — Sea freight transport, the lifeblood of trade and a bellwether of the global economy, has been blown off course by the new coronavirus, sparking general alarm.

As analysts pore over charts to gauge just how badly Chinese mega-factories have been hit, figures provided by cargo ship traffic paint a gloomy picture.
....https://www.timesofisrael.com/coron...it-shipping-spreading-global-economic-strain/

 

[Commonground]

By BENOIT PELEGRIN
Today, 8:01 pm
LONDON, United Kingdom (AFP)

Excerpt from the above article:

The BDI has now reached lows last seen in early 2016, when the shipping sector was suffering a supply and demand imbalance in the wake of the 2008-09 global economic crisis.

Its “Capesize” index for the largest category of ships — those that cannot even squeeze through the Suez or Panama Canals — is at historic lows.

...https://www.timesofisrael.com/coron...it-shipping-spreading-global-economic-strain/

 

[Commonground]

Another excerpt:

“Power generation in China has dropped and steel mills are reportedly cutting capacity utilization which, respectively, point to lower demand for coal and iron ore,” Capital Economics wrote.

....The price of shipping both commodities is reflected in the BDI index, which is in “free fall,” Capital Economics said.

 

[sharon sanders]

Freight rates from China to West Coast down 90% as global trade falls off fast


PUBLISHED WED, DEC 7 20229:28 AM EST
UPDATED WED, DEC 7 20226:40 PM EST

• A 90% year over year drop in ocean freight rates for cargo from China bound to the U.S. West Coast exceeded the expectation among logistics firms for just how fast trade demand would fall.
• Prices in the ocean freight contract market posted a record monthly drop in November.
• Central banks around the world are fighting inflation by raising interest rates and cooling demand, but that can quickly turn into a recession rather than the “soft landing” for the economy banks including the Fed say their monetary policy can engineer.
• While November could represent the low point, logistics firms are warning of an all-out price war in 2023 with too many ocean vessels and too much container capacity.

more....

https://www.cnbc.com/2022/12/07/frei...s-rapidly.html

 

[sharon sanders]

Please see:


2020

China’s export container shipping index climbs in January

China shuts terminal at world’s 3rd busiest port after COVID case - August 12, 2021



2021

China - All passenger and freight transportation in Gu'an county suspended due to COVID-19 coronavirus case - Hebei province - January 12, 2021

Shortage of shipping containers around the globe and bottlenecks at key West Coast ports: Los Angeles, Long Beach, Oakland and Seattle - July

The Grocery Price Shock Is Coming to a Store Near You - July

Walmart to hire 20,000 supply chain workers - October

China - Manzhouli port is fully closed due 60 positive COVID-19 samples in Manzhouli, Inner Mongolia (65% of China - Russia trade by land) - December 1, 2021



2022

CA: Union Pacific thefts another problem for already beleaguered supply chain - January 2022

Coronavirus restrictions hit shipping, spreading global economic strain - February 2020 - but wait....December 2022: Freight rate from China drops 90%