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Transpacific Shipping Drops 75% During Peak Season as Joe Biden Energy Inflation Bites and Consumer Spending Collapses

Added 10-05-22 10:36:02pm EST - “The economic data coming in the past week is in alignment with prior forecasts.? Bottom line, energy driven inflation has collapsed consumer spending, inventories climbing, vendors are cancelling orders, and this is peak season for…” - Theconservativetreehouse.com

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Posted By TheNewsCommenter: From Theconservativetreehouse.com: “Transpacific Shipping Drops 75% During Peak Season as Joe Biden Energy Inflation Bites and Consumer Spending Collapses - The Last Refuge”. Below is an excerpt from the article.

The economic data coming in the past week is in alignment with prior forecasts.  Bottom line, energy driven inflation has collapsed consumer spending, inventories climbing, vendors are cancelling orders, and this is peak season for transpacific shipping- which has now recorded the most rapid drop in history.

A single transpacific container shipment cost $19,000 in 2021, then $14,500 in 2022 as the intentional slowdown began.  Now it’s only $3,900 as entire fleets of cargo shipments are cancelled due to lack of demand by U.S. purchasers.

Folks, get ready…. because it’s not going to get better.  Prior farm costs, an outcome of energy price increases, are now reaching the supply chain. Food costs will continue increasing throughout the holiday season.

(Wall Street Journal) […] Trans-Pacific shipping rates have plummeted roughly 75% from year-ago levels. The transportation industry is grappling with weaker demand as big retailers cancel orders with vendors and step up efforts to cut inventories. FedEx Corp. recently said it would cancel flights and park cargo planes because of a sharp drop in shipping volumes. On Thursday, Nike Inc. said it was sitting on 65% more inventory in North America than a year earlier and would resort to markdowns.

[…] One response to the melting demand has been to reduce sailing trips. In September, container capacity offered by ship operators in the Pacific was down 13%, dropping the equivalent of 21 ships that can each move 8,000 containers in a single voyage, from a year earlier, according to shipping-data providers Xeneta and Sea-Intelligence.

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