The cost of shipping goods from China has dropped to its lowest level in more than two years. As the global economy stumbles, this means the prospects for container carriers - that turned in record profits during the pandemic- are not as bright anymore.
A 40-foot shipping box from the world’s largest port of Shanghai to Los Angeles fetched $3,779 last week, the first time the spot price was below $4,000 since September 2020 and half the level of three months ago, according to Drewry. More declines are expected in the next few weeks, it said.
While the value of Chinese exports was still rising through August, it’s expected to continue to slow down. That’s a symptom of multiple headwinds hitting developed and developing economies alike, from soaring inflation and a surging dollar to central bank interest-rate hikes and trade disruptions blamed on Russia’s war in Ukraine.