“Freight rates from China to West Coast down 90% as global trade falls off fast”
“According to Freightos, despite the increase in canceled sailings which has cut vessel capacity, the hemorrhaging of ocean freight prices continues:
Asia-U.S. West Coast prices (FBX01 Weekly) fell 26% to $1,426/FEU. This rate is 90% lower than the same time last year.
Asia-U.S. East Coast prices (FBX03 Weekly) decreased 19% to $3,723/FEU, and are 78% lower than rates for this week last year.
Asia-N. Europe prices (FBX11 Weekly) fell 2% to $3,974/FEU, and are 73% lower than rates for this week last year.”
Given what curves are doing, no surprise China reported today exports to US COLLAPSED by 25% y/y in November. Same month when inversions went nuclear.
That's worse than Mar '20. Here comes the hard data confirming global recession. And not just overseas.https://t.co/D1jmffuBjj pic.twitter.com/OKdPvRRHRr
— Jeffrey P. Snider (@JeffSnider_EDU) December 8, 2022
One reason why curves are so massively inverted now, major, major monetary risks beginning w/collateral. 4w bill today below current RRP – and there's supposed to be a rate hike *next week.* Big trouble.https://t.co/D1jmffLElj pic.twitter.com/uOsHHVDYhx
— Jeffrey P. Snider (@JeffSnider_EDU) December 8, 2022
Right now the June '23 to June '24 spread is almost 140 bps, right there with Sept '07. The mkt isn't saying rate cuts in H2, the mkt is saying that whenever the cuts do start they are going to end up being aggressive.
Why? There's no soft landing here.https://t.co/D1jmffuBjj pic.twitter.com/rLkmxvW4H1
— Jeffrey P. Snider (@JeffSnider_EDU) December 8, 2022
Container shipping costs are near the pre-COVID average. pic.twitter.com/ynwMaIPlVi
— (((The Daily Shot))) (@SoberLook) December 9, 2022
AC
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