US Import Demand Drops off Cliff…
Inbound container volumes to the US are reverting to pre-pandemic levels

Because capacity on the trans-Pacific has remained relatively stable, Freightos’ container spot rates from China to the West Coast have plunged 38% month-over-month to $9,630.

Container imports bound for the U.S. have dropped over 36% since May 24. (This index measures departing container volumes at the port of origin). This is a troubling sign for domestic U.S. freight markets that have been benefiting from an unprecedented surge of containerized import volumes over the last 18 months.

Goods-producing companies will not be alone. Services and tech companies will also be under pressure in the coming months, and sell-offs could lead to layoffs.

Demand destruction has arrived.


Demand destruction has arrived.

Not so sure about that at all.

Diesel has or will tumble reading that.

The US middle class consumer gets a wage hike in relative terms out of all of this. We are in the demand side econ part of the cycle. These shifts create more consumption and saving.

We might equally assume the other western economies get this boost as well.

This is just one more level of why I think the coming recession will be shallow.

Watch out for weakness in the financials. We do not know how deep in the hole some of them are.

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