Due to high inflation, American households have reduced their spending on furniture and other items, resulting in a sharp decline in sea freight exports from Asia to the United States.
According to a report by American media on August 23, the latest data released by S&P Global Market Intelligence showed a year-on-year decrease in container freight imports in the United States in July. The container import volume in the United States in July was 2.53 million TEUs (twenty foot standard containers), a year-on-year decrease of 10%, which is 4% higher than the 2.43 million TEUs in June.
The institution stated that this is the 12th consecutive month of year-on-year decline, but the data for July is the smallest year-on-year decline since September 2022. From January to July, the import volume was 16.29 million TEUs, a decrease of 15% compared to the same period last year.
S&P stated that the decline in July was mainly due to a 16% annual decrease in imports of discretionary consumer goods, and added that imports of clothing and furniture decreased by 23% and 20% respectively.
In addition, since retailers are no longer stockpiling as much as they did at the peak of the COVID-19 epidemic, freight and the price of new containers have fallen to the lowest point in three years.
The furniture freight volume began to plummet in the summer, and the quarterly freight volume was even lower than the level in 2019.This is the number we have seen in the past three years,” said Jonathan Gold, Vice President of Supply Chain and Customs Policy at NRF. “Retailers are cautious and they are watching.”“In some ways, the situation in 2023 is very similar to that in 2020, when the world economy was suspended due to the COVID-19, and no one knows the future development.” Ben Hackett, founder of Hackett Associates, added, “The freight volume declined, and the economy was in the midst of employment and wage problems. At the same time, high inflation and rising interest rates may lead to economic recession.”
“Although there was no widespread lockdown or shutdown, the situation was very similar to when the shutdown occurred in 2020.”
Post time: Dec-06-2023
