Trans-Pacific shipping time is greatly shortened, spot freight rates continue to drop
Digital freight platform Shifl reported that U.S. GDP fell 1.4% in the first quarter of 2022, worrying economists and analysts. Trans-Pacific freight routes are also starting to suffer as talk of a cargo recession and lower ocean spot freight rates emerge. U.S. imports hit a record in the first quarter of 2022, up 4.77% from an already record high in the fourth quarter of 2021, thanks to previously strong orders and consumer demand. The current drop in demand in China and the coronavirus blockade have eased congestion at U.S. West Coast ports, while total transit times to U.S. West Coast ports have been significantly reduced in April this year . More specifically, transit times from China to the ports of Los Angeles and Long Beach have been reduced by 85%, from 50 days in December 2021 to 27 days in April 2022. However, it is still higher than pre-pandemic levels. During peak congestion on the West Coast, customers divert cargo to East Coast ports, resulting in congestion sh...