Home News The housing market slowdown is showing up in shipping data from China

The housing market slowdown is showing up in shipping data from China

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Consumer spending cuts have already reduced China’s manufacturing orders by US importers by 20-30%. Recently reported by CNBCAnd recent data from US shippers show that the slowdown in the housing market is also manifesting itself in Asian supply chain data.

Akhil Nair, Senior Vice President of Asia Pacific Products at Seko Logistics, said: “Furniture and home decor has slowed significantly, especially in China and Vietnam, due to the high inventory of importers.”

Inflation brought record lows in consumer sentiment, but the housing market remained strong until the FRB’s recent stance led to the biggest weekly youth jump in mortgage rates since the 1980s. ..

Spencer Shute, a senior consultant for supply chain and procurement company Proxima, said: “Given the number of new home sales and constructions, this is not surprising.”

In summary, recent job data and housing-related order data show how scrutiny of spending by US consumers affects supply chain conditions and inventory planning.

General product categories and orders have been reduced by shipper since March as a result of overstocking. Major retailers, including Wal-Mart and Target, surprised the market when they reported huge inventory levels in May.

According to the latest data, the decline in orders is not complete.

“There is still strong demand for other sectors such as garments, sporting goods and e-commerce,” said Nair. “As far as I know, major clothing and shoes have not yet shown a significant reduction or postponement of orders,” he added.

The American Apparel & Footwear Association (AAFA) has told CNBC that strong demand for apparel and footwear will continue.

Steve Lamar, CEO of AAFA, said: “First, consumers need the right clothes, shoes, and equipment to dress and experience for themselves. Second, the shopping itself – summer clothing, new school children’s clothing, shoes, or new bag stores. It’s still an experience to try on and buy your favorite fashion, touching the style of work, touching the materials, and browsing the stores. “

Lamar added that the threat of high prices remains a serious concern for retailers.

U.S. port congestion

Congestion at US and European ports, and a decline in US job orders in China highlight this week’s CNBC supply chain heatmap.

Ports across the country continue to process record imports, and as Shanghai slowly reopens, this peak season is expected to be strong despite inflationary concerns. The reason is that these orders were placed by US retailers a few months ago.

The increase in both unscheduled and scheduled vessels arriving at the East Coast and Gulf ports is causing congestion on the arrival of vessels. So far, the unloading and loading of container vessels at these ports is proceeding smoothly.

However, the ports on the west coast are still plagued by railroad delays, and the chassis is being used as a temporary warehouse to store loaded containers.

Massive containers arriving at all US ports continue as the peak season continues.

John Gold, Vice President of Supply Chain and Customs Policy at the National Retail Federation, said: “Retailers are considering supply chain disruptions and planning to meet strong consumer demand accordingly, despite continued concerns about inflation.”

German trade union strike

Negotiations between the German trade union ver.di and the German Seaport Company Central Association (ZDS) continue after the second warning strike last week. The strike lasted 24 hours, but the first strike was a shift. The effects of the all-day strike affected almost every port in the northern German sea.

According to sources, CNBC was offered an offer to the union by ZDS and finally proposed a wage increase of up to 11% in 18 months. Sources want a mediation procedure for politicians and neutrals to mediate.

Delays caused by recent warning strikes have been added to ship congestion. Container ships are currently several weeks behind in some German ports.

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