China-US shipping rates tumble due to ‘plummeting’ demand despite typhoon disruptions

Port of Shanghai and Ningbo-Zhoushan Port were forced to shutdown this week due to Typhoon Muifa

Spot rate for sending a 40-foot container from Asia to the west coast of the United States has dropped by 10 per cent in the past week

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Ningbo-Zhoushan Port – the world’s biggest in terms of cargo throughput – also suspended operations on Tuesday night, but has yet to resume activities. Photo: Xinhau

Published: 2:21pm, 15 Sep 2022Updated: 5:35pm, 15 Sep 2022

Shipping rates from China continued to drop sharply this week due to weakening demand, despite disruptions caused by typhoons – which have forced the shutdown of major Chinese ports twice since the beginning of the month.

The Port of Shanghai – the world’s largest container port – resumed operations on Thursday, after having been forced to shut down for two days because of Typhoon Muifa. The port had also suspended operations due to Typhoon Hinnamor at the start of September.

The nearby Ningbo-Zhoushan Port – the world’s biggest in terms of cargo throughput – also suspended operations on Tuesday night, and most of its terminals had resumed operation as of noon on Thursday.

The implications of such temporary blips were amplified on the global supply chains at the same time last year when they were struggling to deal with record shipping volumes from China during its peak export season.

The overall shipping demand from customers is plummeting, the only exception is the new energy industry, which is still seeing strong exports, but the rest is not good

Xu, shipping agent

But weakening demand from Western countries this year have continued to drag on the shipping price despite the disruptions, with shipping companies and agents reporting no sign of a peak season this year.