The strongest warning of the economic winter: the cargo volume of the largest container port in the United States has plummeted for 2 consecutive months
The Port of Los Angeles, the largest container port in the U.S., is facing excess inventory and saw a drop in cargo during what should have been its busiest shipping period. Freight data is often seen as a barometer of economic conditions. Generally, freight data precedes the economy, and freight recessions tend to come earlier than economic downturns. Consumer demand is slipping as inflation continues to push up retail prices. Shipping costs have also worsened, with carriers scaling back capacity fearing a recession is coming. Growth in U.S. imports has lost steam. Due to lack of capacity, retailers with excess inventory have canceled overseas orders, and freight volumes have fallen in a month that should be in the peak shipping season. Weak industry outlook Port of Los Angeles executive director Gene Seroka said the industry outlook for the rest of the year will be "soft." Its cargo volumes plummeted in September, falling for the second straight month. Seroka said the port...