Bullwhip effect cracking US imports’ peak season (again)

News Snapshot:

Last week, we forecast a further decline in U.S. containerized import volumes in the second half of 2023, and a “new” bottom for volumes during this downcycle. The lingering effects of the “bullwhip effect” on inventories, along with the considerable downside risks that exist to consumer spending, the upcoming months are likely to witness an unprecedented level of caution among importers during this year’s peak season. This caution, combined with a weakening global macroeconomic backdrop, only heightens the risks of declining import volumes. The Inbound Ocean TEUs Volume Index – USA with four-year seasonality. Chart: FreightWaves SONAR. To learn more...