As backlogs at U.S. ports and climbing shipping rates plague the supply chain, new data shows shipping rates between the U.S and China are dropping by more than 50% in just a month.
Data provided by digital freight forwarding company Shifl shows China/U.S. spot freight rates, for shipping a 40-foot container from China to Los Angeles, dropped by $9,000. That’s a 51-percent drop between September and October.
Experts say China is slowing production due to a power crisis and the off-season coming into view, but issues remain due to a growing backlog of unfulfilled orders.
Earlier this week, AgDay reported that Port officials say strong American consumer demand has continued unabated for more than a year, as the Port of Los Angeles has seen a 30% increase in cargo volume so far this year. That’s as exports from the Port of Los Angeles dropped 23% in August.
It’s impacting agriculture in the U.S. because of record-high shipping rates. That’s coupled with the fact that some shipping lines are working to get empty containers back to factories in Asia as quick as possible.
