Container Bookings Plummet in US, Impact on Economy

Container bookings in the US have plummeted by 11% this fall, marking a significant shift from the overstocking of 2022. Analyzing the past six years, we find that the current numbers are lower than the average, indicating a potential slowdown in our economy and transportation. The increase in Chinese tariffs in 2019 and the pandemic in 2020 led to a surge in container imports, causing companies to switch from just in time to just in case ordering. However, as consumer spending slowed, many businesses found themselves with excess inventory, leading to disruptions and high shipping costs. Now, import demand has dropped, suggesting companies are trying to reduce their stock. Shippers dont anticipate a strong demand increase soon, potentially leading to a weaker holiday season. However, leaner inventories could cause shipping rates to spike quickly if demand unexpectedly rises.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.