Maersk Cancels Voyages From Asia Due to Lower Consumer Demand
Trade volumes on trans-Pacific and trans-Atlantic trade routes are slumping given the cooling effect of inflation and the post-pandemic shift from goods to services on consumer spending, shipping giant Maersk said in its Sept. 23 North American advisory. The result has led to Maersk canceling voyages lest spot rates continue to fall. The trade volumes are softening in September, though they still sit higher than pre-pandemic levels, with director of the Port of Los Angeles saying that it will see its second-busiest year in history.
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"Warehouse inventories are high and consumer sentiment about future economic prospects are low," Maersk said. "Businesses now face the challenging task of adjusting shipping activity and forecasts to match anticipated market demand for the months to come." As a result, the shipping company said it is "actively adjusting" its shipping network to better suit customers' demands by improving transit times and reviewing the best use of structural blankings for vessel sailings in September and October.
This period, the run-up to China's Golden Week holiday, has traditionally stood as the peak season for seaborne trade since shipments in China must leave for ports in the U.S. and Europe to stock warehouses before the fourth quarter. The shift in consumer habits has changed that calculus, leading to the shipping cancellations, Maersk said.