ONE cuts shipping services, suggesting demand wave will break

China 2600 Cons. Discr. - Autos 952 Cons. Discr. - Durables 342 Corp - Shipping 810 Industrials - Capital Goods 469 Info Tech - Tech Hardware 622 Mode - Containerized 1269 Mode - Seaborne 1599 South Korea 510 Theme - Rates 180 U.S. 4625

Ocean Network Express is cancelling two of its EC3 container shipping sailings from China to the U.S. east coast in November in response to a decline in demand. Container rates for China-to-U.S. east coast routes have surged by 21.8% in the past eight weeks due to increased post-pandemic demand, a time of year when they normally dip. It’s worth noting that rates can drop rapidly when demand declines. That was the case in 2018 when rates fell by 16.0% in four weeks in response to the end of pre-tariff stockpiling in the U.S. ONE’s routing decision follows a weaker-than-average performance...

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