Authorities in Shanghai are set to begin the reopening process next week after an extended lockdown. When manufacturing comes back online export volumes are expected to surge toward already-congested ports like LA/Long Beach.
Ports are hoping that lessons-learned throughout the pandemic will mitigate how disruptive the likely surge will be.
But retailers importing peak season goods early, or stuck with excess inventory on some big-ticket household items as consumer spending shifts, are causing a shortage of warehousing space. This could be another factor that could back up imports at the ports’ container yards.
A release of pent up demand could put upward pressure on container rates when Shanghai reopens.
In the meantime, prices from Asia – the US West Coast are almost 30% below their level just before the lockdown, and Asia – N. Europe rates are just 15% higher than this time last year.
Asia-US rates for this week:
|FBX Lane||Global||Asia – US West Coast||Asia – US East Coast||Asia – North Europe||North Europe – US East Coast|
|* Compared to the corresponding week in 2021|