By Richie Lin      Photo：Attie Heunis

In USA, there were important economic indicators announced last week and the numbers worsen everybody’s negative feeling. These indicators are the yearly increased rate of durable goods orders and Unemployment Insurance Weekly Claims (UI Claims). Yearly increased rate of durable goods continued to drop from the 7.93 of September to 6.94 of October. And the number of UI Claims also increased from 209000 of early September to 240000 at the middle of November. Based on these two economic indicators, we can conclude that economy will not turn to positive in a short time. Companies don’t get many orders from their customers, so they will be forced to cut the expenditures, so the unemployment rate will be higher and higher because some people will be layoff to reduce the spending on human resources. Therefore, consumers will stop or restrict to buy the durable goods such furniture, electronic devices, home appliance because they have to save the money to endure the hard times. Then the vicious cycle will keep going on and on until consumers have the appetite and money to buy new things in their living rooms, garages, kitchens, etc. However, consumers will likely to as frugal as possible in the coming months under the pressures of high gasoline and high inflation. The mood in the market has been reversed from aggressive to cautious since the end of second quarter in 2022. Top priority of USA and European countries is to suppress the inflations by all means including but not limited to increasing the interest rate. Since companies’ orders and consumptions are decreasing, the demands of ocean freight and airfreight services will definitely go downward. Then the freight charges will go down as well even though shipping lines will keep using blank sailings to reduce the supply of spaces so as to keep up the rate as much as possible.

FCL market rate reference in week 48:

• Asia main ports to USAWC USD 1700~2200 per 40GP; 
• Asia main ports to USAEC USD 4000~5000 per 40GP; 
• Asia main ports for IPI points of USA is USD 4500~5500 per 40GP. 
• Asia main ports to Europe base ports and West Mediterranean: USD 4500~5500 per 40GP.

Airfreight market rate in Week 48:

Airfreight rate might increase abruptly without further notice. The following market rate for your reference. 

• PVG/SZX/HKG/TPE to LAX USD 4.3/kg, 
• PVG/SZX/HKG/TPE to ORD USD 4.4/kg, 
• PVG/SZX/HKG/TPE to JFK USD 5.0/kg.

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