Category: General
Country: United States
Lack of demand is hurting China's manufacturing industry.
ROBERT (BOBBY) DALHEIM
Senior Editor of Case Goods and Global Sourcing
December 5, 2022
HIGH POINT — U.S. manufacturing orders from China have fallen 40% since the end of the summer, according to CNBC’s latest supply chain heat map.
Goods that are coming from China will face delays as a result, as ocean carriers are announcing more blank sailings and service suspensions to compensate for the demand falloff.
“The unrelenting decline in container freight rates from Asia, caused by a collapse in demand, is compelling ocean carriers to blank more sailings than ever before as vessel utilization hits new lows,” CEO of Worldwide Logistics Group Joe Monaghan told CNBC.
Just as in Vietnam, Chinese factories are expected to close two weeks earlier than usual for Lunar New Year, which begins Jan. 22. In Vietnam, some factories will close as early as late December.
China’s manufacturing purchasing managers’ index registered at 48.0 in November, the lowest reading in seven months, according to the National Bureau of Statistics. China’s non-manufacturing index also saw a significant decline from October to November, going from 48.7 to 46.7.
Another interesting finding in CNBC’s heat map is Europe’s manufacturing increase. The U.S. imported 808,000 twenty-foot equivalent containers of cargo from Europe in November, a 20% increase since March. The U.S. has imported more goods this year from Europe than it has from China, with Germany leading the charge.
Courtesy: https://hfd.bridgetowermedia.com/acton/ct/41765/s-24ce-2212/Bct/q-005e/l-0019:91ab0/ct6_2/1/lu?sid=TV2%3AEH02YiiSY
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