March 20, 2023
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How will the dip in consumer demand affect the volume of my shipments and overall business?

How will consumer demand lag affect shipment volume and business

Recent data suggest USA consumer confidence is improving as fears of continued inflation are leveling off. However, the recent drop in demand for import goods has significantly impacted ocean vessel operations throughout most ports around the world. Current USA-Chinese manufacturing orders are down 40% for the year, with an overall 20% decrease in container imports between August and November 2022.1

Ocean carriers are reacting to the current vessel over-capacity in several ways including:
  • Blank sailings - a sailing that has been partially canceled wherein some ports are bypassed, or fully canceled with no sailing at all
  • Rollovers - overbooked sailings that leave a percentage of scheduled containers off the sailing
  • Suspended service for specific lanes
  • Reduction of vessel capacity for the short term1
The decrease in import container traffic is having knock-on effects on export container capacity as well. That is, as fewer containers are being brought into the USA, competition is increasing to secure empty containers for loading back out which is causing export delays, dependent of course on specific trade lanes. As a result, importers and exporters are adding more lead time when preparing new shipments, and are being extra cautious when port pair planning.

Major ports affecting traffic across the transpacific lanes with the United States include:1

China
Shanghai
Ningbo
Yantian
Nanjing
Hong Kong

Japan
Tokyo
Kobe
Nagoya
Yokohama
Osaka

Vietnam
Ho Chi Minh
Haiphong

Philippines
Manila
Malaysia
Port Klang
Penang

Singapore
Port of Singapore
Jurong

Australia
Melbourne
Sydney
Brisbane

New Zealand
Auckland

United States
West Coast: Seattle / Tacoma / Portland / Oakland / Los Angeles
East Coast: New York / New Jersey / Charleston / Miami
Gulf Coast: Houston

Choosing the right logistics partner is crucial for success. It’s important that when you’re selecting a logistics provider, that they understand all factors related to the current transpacific shipping challenges. If you choose wisely, your shipment will be properly booked well in advance of vessel cutoffs for your specific trade lane(s).

Consultation with DGX
We invite you—free of charge—to consult with DGX-Dependable Global Express for shipments in your trade lanes for your specific commodities, including Harmonized Schedule (HS) Codes, BEFORE finalizing your shipping arrangements. We will guide you through each step on all possible port pairings and options, minimizing unnecessary delays and avoiding headaches. DGX believes in long-term relationships with a consultative and transparent approach to international shipping.

As part of the personalized attention that we provide to every customer, DGX assigns you a dedicated sales agent at the front end of your shipment planning. For more information, call us at 888.488.4888 Ext. 2011 or email us.

Please visit our website for more information.

1 "U.S. manufacturing orders from China down 40% in unrelenting demand collapse," CNBC, December 4, 2022

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