The US GDP fell 1.4% in the first quarter of 2022, which has concerned economists and analysts alike. Ripples have been felt across the Trans-Pacific corridor as discussions of a freight recession and cooling ocean freight spot rates hit the headlines.
The US saw an extremely high volume of imports in Q1 ‘22, increasing 4.77% from an already record-high Q4 ‘21 on the back of previous orders and consumer demand.
Meanwhile, the Chinese COVID-19 situation continues to worsen as movements within Shanghai remain restricted, shackling manufacturing output, trucking activity, and port throughput.
With Beijing teetering at the brink of a similar situation, the Chinese mainland might have problems returning to the previous smooth flow of cargo movement. This has been reflected in the cargo volumes from China sliding over May, and shippers believe the situation will remain murky for a while.