Container activity between China and the United States slips again, with traffic that reaches its weakest levels in two years, according to the latest reports.
Lowest reading in 2 years
On Sunday, in a post on X, the Kobeissi letter shared the last figures of Apollo Global Management About container shipment between China and the US, and notes that it has fallen to the lowest level since May and is also “one of the lowest lectures in 2 years.”
The post also notes that the sharpness of this delay and says: “Shipping volumes have fallen by 40% in the past month”, which emphasizes a significant decrease in trade flows, which comes “despite the current rate larm of the US-China, which was extended for 90 days.”
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It says that “in reality the average rates of the US on Chinese goods are still 55%, according to Bloomberg,” referring as an important reason behind this decline.
The post concludes by saying: “US-China trade slows down”, where the corresponding graph shows the shipping capacity and the capacity capacity used.
Rates that cause damage to supply chains
University of Toronto Economist William Sheehan Emphasized the consequences of this great decrease in the shipments from China last week. Referring to a rolling stone column through Paul KrugmanSheehan notes that this dip would mean more than 58,000 fewer containers and 700,000 fewer truck loads.
E-commerce platforms such as Amazon.com Inc. Amzn” Alibaba Group Holding Ltd. Baba And PDD Holdings Inc. PDD Bracing before the end of de-minimis exemptions, which make tax-free imports of low value below $ 800 possible, which will come to an end on August 29.
Platforms such as Shopify Inc. Shop” Commerce.com Inc. CMRC And Lightspeed Commerce Inc. LSPD are most exposed to this change, given their dependence on smaller traders and importers.
Larger retailers such as Walmart Inc. WMT” Target Corp. TGT And Nike Inc. Smooth Are that not exposed to de-minimis exemptions, which are mainly used for direct shipments, but the decrease in shipments from China as a whole is certainly a reason for concern.
| Stock | Year-to-date performance | Since the liberation day |
| Amazon.com Inc. Amzn | +4.91% | +29.49% |
| Alibaba Group Holding Ltd. Baba | +42.74% | -6.23% |
| PDD Holdings Inc. PDD | +22.77% | +4.64% |
| Shopify Inc. Shop | +31.56% | +71.91% |
| Commerce.com Inc. CMRC | -24.76% | -16.96% |
| Lightspeed Commerce Inc. LSPD | -21.35% | +50.97% |
| Walmart Inc. WMT | +4.91% | +35.08% |
| Target Corp. TGT | -24.91% | +9.27% |
| Nike Inc. Smooth | +4.48% | +38.48% |
In May, the port of Los Angeles, the largest import gateway to the US, warned that freight volumes were down.
According to the executive director of the port, Gene SerokaEven the ceasefire and the temporary recovery of the rates are not enough to reverse what happens, because he says, “You are not going to load to 30%,” referring to the reduced rates.
Photo with thanks to: Engineer Studio on Shutterstock.com
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