November 25, 2022
IT'S IMPOSSIBLE TO OVERSTATE DEFLATIONARY PRESSURES:
Easing supply chain disruptions drag down shipping rates (Dirk Kaufmann, 11/25/22, Deutsche-Welle)
Martin Kröger, chief executive of the German Shipowners' Association (VDR), says the situation has eased "almost back to normal.""The backlogs of ships along European coasts have been overcome," he told DW, adding that shipping capacity wasn't so tight anymore as at the end of last year. Another piece of good news, he said, was that ocean freight rates are falling significantly. "Shipping conditions are similar to what they were before the pandemic."German business daily Handelsblatt has published data showing that shipping rates have come down to pre-pandemic levels, with a 20-foot container from China to Northern Europe, for example, now costing $1,479 (€1,420) on average, compared with around $8,000 at the beginning of 2022. Shipping a container from Shanghai to the US West Coast "is even cheaper than in 2019," the newspaper reported.
Meaning it is once again cheaper to put all your stuff in a shipping container and leave it at sea than to rent a storage unit locally.
Posted by Orrin Judd at November 25, 2022 12:00 AM