consumer demand Archives - Maritime Shipping News

Changing Consumer Behavior Affecting Container Shipping

21 September 2023

Credits: Eilis-garvey-unsplash

As we near the end of the traditional peak season, the spot rate declines over the past 2 weeks are a very clear indicator that the peak season did not really materialize. Further to that, there are dark clouds looming over the horizon for the Transpacific trade, in part linked to US consumer behavior.

Changing Consumer Behavior

One element is the change in consumer behavior we saw during the pandemic (from services to goods), which is very likely to change back and...

https://mfame.guru/changing-consumer-behavior-affecting-container-shipping/

From booze to fries, signs of consumer demand weakness multiplying

26 July 2023

FreightWaves has written extensively in recent months about the continued profound weakness in U.S. goods demand, which has been reflected in unusually weak truck, rail and corrugated box volumes, among other areas. Indeed, we just reported on continued historically weak box demand earlier this week.

In our coverage of the retail and consumer packaged goods industries, we’ve noted trade-down activity (to cheaper private-label items), increasingly fewer purchases of discretionary items in favor...

https://www.freightwaves.com/news/from-booze-to-fries-signs-of-consumer-demand-weakness-multiplying

Sea Shipping Costs Plunge Amid Sliding Demand

12 March 2023

Credit: Ian Simmonds/Unsplash

Sea shipping costs have plunged by over 80% from the previous peak as consumption has dropped amid inflation concerns, reports VN Express.

Price drop

Tran Lam Son, CEO of wood and furniture exporter Thien Minh, said that shipping a container to Europe now costs around $1,700, down nearly 92% from the peak of $20,000 a couple of years ago. The price drop poses opportunities for businesses like Thien Minh but is perceived as a negative sign for the logistics sector.

Logis...

https://mfame.guru/sea-shipping-costs-plunge-amid-sliding-demand/

Airfreight industry watches for signs of midyear recovery

12 January 2023

Air cargo ended 2022 on a weak streak that is expected to continue well into the first half of the year, with logistics companies hanging hopes for better demand on retail inventory clearance bottoming out by summer.

Uncertainty is the watchword for 2023. Any progress in freight transport could be undone by a recession predicted by most economists or more unexpected geopolitical events.

Overall shipment volumes were down 8% in December versus the same period the prior year. More importantly,...

https://www.freightwaves.com/news/airfreight-industry-watches-for-signs-of-midyear-recovery

Volume decline gives Port of Savannah operators a breather

13 December 2022

The Georgia Ports Authority said the year-over-year 6.2% volume drop in November is not a bad thing.

“Container trade at U.S. ports is returning to a more sustainable growth pattern, which is a positive development for the logistics industry,” GPA Executive Director Griff Lynch said in a Tuesday news release. “Along with the addition of more than 1 million TEUs of annual capacity, a slight reduction in demand will mean faster vessel service as we work to bring a new big ship berth online at...

https://www.freightwaves.com/news/volume-decline-gives-port-of-savannah-operators-a-breather

Ocean Shipping Rates Nosedives 60% This Year

5 September 2022

Freight rates on the main ocean trade routes are sinking during what is typically the industry’s peak season after cargo owners shipped holiday goods early and inflation dented consumer demand, reports WSJ.

The cost to ship a 40-foot container from China to the U.S. West Coast now stands around $5,400 a box, down 60% from January, according to the Freightos Baltic Index. A container shipped from Asia to Europe costs $9,000, 42% less than at the start of the year. The rate for both routes, while...

https://mfame.guru/ocean-shipping-rates-nosedives-60-this-year/

Is truckload capacity finally normalizing?

27 March 2022

Freight demand plummets at fastest pace since December 2020

Chart of the Week: Outbound Tender Reject Index, Outbound Tender Volume Index – USA SONAR : OTRI.USA, OTVI.USA

National truckload tender volumes have fallen nearly 9.5% since March 3 while rejection rates have accelerated their decline to hit their lowest point since June 2020. FreightWaves CEO Craig Fuller wrote about how this is the start of another “bloody” cycle for truckload carriers but not everything will be the same as it was in...

https://www.freightwaves.com/news/is-truckload-capacity-finally-normalizing

Loaded and Rolling: Driver recruiting and supply chain pressures

7 January 2022

Driver recruiting challenges, pay and demographics trends

Driver recruiting remains a key challenge heading into 2022 due to pandemic, demographic and economic trends. Pay and wages remain a central theme in both driver recruitment and retention, with carriers raising base driver pay multiple times in 2021 to keep up with demand. These pay raises are passed off onto shippers and consumers through higher freight rates and transportation costs, fueling inflationary...

https://www.freightwaves.com/news/loaded-and-rolling-driver-recruiting-and-supply-chain-pressures

Holiday truckload demand stronger than in 2020

2 January 2022

Chart of the Week: Outbound Tender Volume Index – USA SONAR : OTVI.USA

After underperforming 2020 over Thanksgiving, the Outbound Tender Volume Index (OTVI) that measures the amount of electronic requests for truckload capacity shippers send to carriers has been averaging over 10% higher than the previous year since Dec. 22. This trend is a sign that shippers still have plenty of freight to move heading into the new year.

The OTVI is an index with a base value of 10,000 based on the tender...

https://www.freightwaves.com/news/holiday-truckload-demand-stronger-than-in-2020

Ship operating costs up 773%, demand up, supply up, congestion up, shipper propaganda up

2 September 2021

^{Pictured: rows and columns of containers in a stack. Photo: OlafPictures via Pixabay}

Current market conditions are caused by a huge surge in the demand for container transport. On the supply side, box port congestion and poor container port performance are reducing the supply of shipping. The costs to operate a ship are massively escalating.

COVID has induced a demand-squeeze. In such a squeeze, demand increases massively and rapidly while supply (which involves the physical building of, and...

https://www.shippingaustralia.com.au/ship-operating-costs-up-773-demand-up-supply-up-congestion-up-shipper-propaganda-up/

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