Surge in Canceled Freight Sailings from China

The number of canceled sailings of freight vessels out of China has surged, reflecting a significant pullback in orders due to escalating trade tensions and tariffs imposed by the U.S. A total of 80 blank sailings have been recorded, with experts predicting a decline of 640,000 to 800,000 containers shipped, which translates to reduced operations at ports and lower logistics fees. China, accounting for about 30% of all U.S. containerized imports and 54% of imports from Asia, is experiencing a demand plummet. This situation could lead to a potential double-digit decline in inbound containerized imports as soon as next month. In recent weeks, there has been a drastic reduction in booking volumes across various product categories, with apparel and textiles seeing drops exceeding 50%. Furthermore, ocean freight rates for shipping from Vietnam to the U.S. have surged by 43% since late March, indicating a shift in trade dynamics as importers seek alternatives to Chinese goods amidst tariff uncertainties. The overall outlook for global trade has sharply deteriorated, raising concerns about the future of ocean freight pricing and vessel capacity management.

Source: CNBC