Consumer sentiment towards retail has been consistently falling over the last few months on account of rising inflation, even as prices of everyday commodities climb. Major retailers like Walmart, Target, and Amazon have indicated inventory overstocking, which could see them cutting down their imports to improve inventory turnaround times. With demand cooling from both the consumer and retailer segments, it is little surprise that ocean freight spot rates between China and N.America are seeing new lows this year.
“Ocean freight spot rates are continuing to drop fast. The SHIFEX index shows China to the US West Coast has gone below $7,000 per FEU while China to the US East Coast is moving downwards to below $9,000 per FEU. Consumer retail expenditure seems to be at a tipping point, inevitably reducing total volumes getting ashore. We expect this to push prices further down in the future,” said Shabsie Levy, the CEO and founder of Shifl.