China Export Shipping Declines by Two-thirds

Posted: May 7, 2015 in Economics

global-economy

Two weeks ago the Shanghai Containerized Freight Index (SCFI), which tracks shipping rates from Shanghai to the world, fell off a cliff: down a breath-taking 67 percent from a year ago. Wolf Richter thought it was a statistical fluke.

It was no fluke. In the next two weeks the SCFI for Northern Europe fell another 14 percent, an all-time low. Wrote Richter: “Something big is going on in the China-Europe trade.”

The collapse is being echoed by other indexes reflecting the breathtaking decline in China’s exports. For example the much-broader China Containerized Freight Index (CCFI), despite being manipulated by the Chinese Ministry, has dropped from 1070 in February to 899 in April.

And the Baltic Dry Index, which tracks shipping rates for raw materials worldwide, shows a similar decline, from 1,484 in December to 575 on May 6.

Observers have come up with a long list of reasons why consumers aren’t buying: a weak and weakening euro, a topping out of demand from American companies building up their inventories anticipating a return of the American consumer to their stores, and weakness in China. Especially China whose purchasing managers’ report (PMI) released on May 1 was the worst reading since April 2005, a decade ago.

Full Story @ [The New American]

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  1. […] China Export Shipping Declines by Two-thirds […]

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  2. […] collapse is being echoed by other indexes reflecting the breathtaking decline in China’s exports. For example the much-broader China Containerized […]

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