The backlog of inventory ordered in reaction to the global supply chain crisis is causing a reduction in import demand

Trans-Pacific ocean container bookings remain strong but are off from their COVID highs. Consumer buying patterns seem to be returning to pre-COVID levels. And as a result, fewer containers are being shipped both month over month and year over year.

Summary of the major factors driving the reduction of imports:

1) Inventories overflowing

The rebound effect of ordering to meet COIVD consumer demand levels is being felt.

2) Skyrocketing consumer costs

Inflation is at its highest since 1981. Fuel costs are at their highest rates in history. Credit card spending has increased and the personal savings rate is very low; most people are just trying to weather this financial storm. This exacerbates the reduction in the demand for goods and services in our consumer-driven economy.

3) Anticipated surge in imports

As the lockdown of the city of Shanghai continued, everyone thought that the official reopening of the city and port would unleash a large backlog of containers that where unable to move. Now it seems that the vast majority of the containers ended up being trucked to the Port of Ningbo. There has not been, nor it seems, will there be a mass number of container bookings out of Shanghai.

Source: https://www.freightwaves.com/news/us-import-demand-drops-off-a-cliff