Before You Click On The "Read More" Link,
Please Only Do So If You Are Over 21 Years Old.
If You are Easily Upset, Triggered Or Offended, This Is Not The Place For You.
Please Leave Silently Into The Night......
Ninety miles from the South Eastern tip of the United States, Liberty has no stead. In order for Liberty to exist and thrive, Tyranny must be identified, recognized, confronted and extinguished.
…Carriers have been executing on an active capacity management strategy by announcing more blank sailings and suspending services to balance supply with demand. “The unrelenting decline in container freight rates from Asia, caused by a collapse in demand, is compelling ocean carriers to blank more sailings than ever before as vessel utilization hits new lows,” said Joe Monaghan, CEO of Worldwide Logistics Group.The shipping industry is feeling the bite as it spooled up with new ships coming online to address the pandemic shipping boom, just as that very business now falls precipitously away.
U.S. manufacturing orders in China are down 40 percent, according to the latest CNBC Supply Chain Heat Map data. As a result of the decrease in orders, Worldwide Logistics tells CNBC it is expecting Chinese factories to shut down two weeks earlier than usual for the Chinese Lunar New Year — Chinese New Year’s Eve falls on Jan. 21 next year. The seven days after the holiday are considered a national holiday.
…″It seems to be a very bad time for the shipping industry. We have the combination of declining demands and overcapacity as new tonnage enters the market,” it wrote.But what the collapse in demand signals for the larger picture is more the worrying aspect.
…Blank (canceled) sailings data shows the cut in vessel capacity on the transpacific route (China to the U.S.) continues at a significant pace. The 2M Alliance of Maersk and MSC has suspended almost half of its U.S. West Coast services for December. The Ocean Alliance (CMA CGM, Cosco Shipping, OOCL and Evergreen) and THE Alliance (Ocean Network Express, Hapag-Lloyd, HMM and Yang Ming Line) have cut overall vessel capacity by 40-50% up to Chinese New Year.Supposedly some of it can be attributed to Chinese COVID restrictions – orders aren’t being placed because of the uncertainty – but the truth of the collapse in orders is that the U,S. economy is on very fragile ground at the moment, and that has greater implications for the world’s economy at large. As much as they hate us, as the old kids’ song says, we are the head bone they are all connected to. Steve Van Metre of Markets Insider Pro points out:
As a result, space for shippers is considered tight for cargo bound for the Pacific Southwest route and service reliability has declined, with carriers including MSC and Hapag-Lloyd rolling (not accepting) cargo on sailings in an effort to make up time. According to logistics managers, this is creating two weeks of delay. MSC said in its latest notice to clients, “ETAs are indicative and subject to change without prior notice.”
“…out of the U.S., demands for foreign-produced goods, particularly out of China, are dropping so much that it’s impacting the shipping industry, it’s impacting jobs in China. It’s having a massive impact. And that’s telling us what’s going on in the global economy right now – that demand is falling on its face.”