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In the shadow of COVID-19, U.S. shipping may have its busiest summer yet.
Behind all the pomp:
On the one hand, COVID-19 has changed people’s behavior, and people have become keen on online shopping.
In addition, the Biden administration’s economic stimulus policies and the continued isolation of the United States during the winter exacerbated the situation.
The surge in freight volumes has also pushed up prices, with the Baltic’s daily freight index continuing to hit record highs and US East Coast freight rates topping $6,000 for the first time this week.
Due to COVID-19, IOTI will have the honor to record the busiest shipping time since January 2019.
On the one hand, the COVID-21 has stimulated the rapid development of the “residence economy”, as people become keen on online shopping, which has led to the surge of the consignment volume.
On the other hand, the economic stimulus of the Biden administration and the continued isolation of the United States during the winter have made the situation worse.
IOTI shows bookings up to a week in advance, which means it can measure shipments leaving its port of origin within the next seven days.
The data suggest bookings will surge next week, following an increase in late January.
Reservations do not necessarily translate into full volume, however, as sea suppliers have the option to take orders, as is the case with ground freight.
Interestingly, the Votvi index shows that, in this case, shippers send spam to their suppliers just to increase their chances of success.
With container imports already closely linked to surface cargo volumes and demand, it is also a sign that domestic surface suppliers will be very active this summer.
The analysis said import bookings are a leading indicator of U.S. ground cargo volumes and can reflect ground cargo volumes two to four weeks in advance.
After a faster-than-expected recovery in consumer spending on durable goods last spring, businesses found themselves running low on inventories and began restocking at a record pace in May.
This has also led to a surge in the volume of goods being carried by trucks, which has slowed down road travel times, narrowing the gap between sea and land travel.