US Exports to China Collapse, Freight Rates Plummet

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Long-term container rates plummet on key US to Far East routes

“This is a very interesting shift,” notes Xeneta CEO Patrik Berglund. “I think it’s fair to say that the comparative weakness of US exports versus US imports from the Far East is taking effect. While imports from the Far East to North America have soared by 31% since the start of the pandemic (Jan/Feb 2019 vs. Jan/Feb 2022) exports have fallen by some 19% for the same period.

“In short, there’s been a lot of empty boxes being sent back to the Far East, while demand in the opposite direction is fierce. The rates are starting to reflect that reality.”

In a further sign of weak export fundamentals, US West Coast exports to the Far East are down 2.5% year-on-year for the first two months of 2022, while East Coast exports are down by 19.7%.

There's a trade war going on, but USG isn't interested.