Shipping orders are showing a significant decrease in the number of buyers | So Good News

The biggest return to consumer demand is evident in shipping, with shipping executives telling CNBC that they saw a 20% drop in shipping orders between September and October. A drop in demand lowers many goods, including machinery, housing, factories and other clothing. Logistics executives explain to CNBC why it’s a combination of multiple products and a lack of clarity in what consumers want.

The practice of shipping ships is similar to recent comments from the management of the manufacturing industry. Georgia Port Authority CEO Griff Lynch said he expects the number of ships waiting to drop in the next few weeks after seeing more calls.

In apparel and footwear, managers say there is no clear trend, although inventory is increasing. Nike’s mounting problems were announced last week as its earnings weighed heavily on the public.

“Inventory levels are at a premium because products are becoming more affordable,” said Brett Rose, CEO of United National Consumer Suppliers. “Big brands focus on the current season and trends. The Bloomingdale’s shopper doesn’t want last season’s shoes or handbags. These items will be attractive to retail buyers such as TJ MaxxMarshalls, Ross Stores,” he said.

Seko Logistics tells CNBC that orders for high-end products such as smart parcel lockers, integrated server systems, ultrasound systems, and time-sensitive goods such as displays are still strong.

DHL Ocean Freight tells CNBC that it is currently not seeing a 20% drop in orders. But with no rush expected in preparation for China’s Golden Week holiday, it expects demand to be smooth in October. Ongoing strikes between rail and port workers in some areas, port disruptions in Europe, and weather-related disruptions could lead to cancellations of cruises and port abandonments, partially reducing the decline in the Asia Pacific.

To put down the costs, ocean carriers are doing so-called tactical cancellations to match the original positions with the orders, which they hope will prevent the prices from falling. In a note to clients, HSL Logistics said its fleet reduction was about 50% and that the fleet reduction should continue until 2023 until demand is met before Chinese New Year, which is at the end of January.

It will take some time for the cuts to stop the stockpile. According to Freightos, Asia-US West Coast rates (FBX01 Daily) fell 8% to $2,978/Forty Equivalent Units (FEU). That rate is 82% lower than the same time last year. Freight rates on the Asia-US East Coast route (FBX03 Daily) fell 5% to $6,952/FEU, and are 63% lower than prices this week last year.

Other factors that indicate the shortage of orders are the rejection of tenders.

The higher the resistance the stronger the strength; the lower the ratio indicates the loose power. “We’re currently tracking 2019 levels and we’re down 80% from where we were a year ago. Looking at recent prices excluding extra fuel, we’re currently 31% below where we were last year,” said Kevin Hill, Director of Communities. and FreightWaves Research.

The CNBC Supply Chain Heat Map shows East Coast shipping disruptions continue and the impact of Hurricane Ian will delay the removal of cruise ships, according to MarineTraffic.

During the period of September 12-18, the Port of Savannah reached the maximum number of waiting days per week since April 2022, according to Alex Charvalias, marine traffic director at MarineTraffic. “Due to Hurricane Ian, zero ship calls have been recorded at the Port of Savannah since September 29. There is no question that this new disruption with Ian will add to the existing chaos.”

CNBC Supply Chain Heat Map provider of data and artificial intelligence and forecasting company Everstream Analytics; global logistics platform Freightos, developer of the Freightos Baltic Dry Index; property agent OL USA; Supply chain intelligence platform FreightWaves; Blume Global sales platform; Third party property agent Orient Star Group; Marine analytics company MarineTraffic; visual data company Project44; shipping data company MDS Transmodal UK; air and sea freight calculator and market analysis platform Xeneta; leading research and analysis provider Sea-Intelligence ApS; Crane Worldwide Logistics; by air, DHL Global Forwarding; Seko Logistics logistics provider; and Planet, provider of global, daily satellite imagery and geospatial solutions.