Disruptions to manufacturing, warehousing and trucking are causing a steep decrease in export volumes out of Shanghai. Some ocean carriers are already skipping ports in the affected region, and others are also considering canceling services if the shutdown continues.
Asia-US ocean rates to the US have declined slightly – 7% from Asia to US East Coast since early March – because of decreased demand and more capacity available at China’s southern ports.
But if the lockdown continues and new outbreaks at other port cities like Nanjing and Guangzhou contribute to a significant overall decrease in demand, ocean carriers may cancel sailings to decrease capacity and keep rates from plummeting. Many major carriers did this successfully in the first months of the pandemic when ocean volumes fell significantly but transpacific rates declined by less than 15% and were about level year on 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|