Container Port Imports Expected to Slow as China Manufacturing Declines

Truckers may begin to experience a decline in port container work as China’s export dominance appears to be waning through the first quarter of 2022.

“It is nearly impossible for China to replicate such strong export momentum this year,” Shuang Ding, chief economist for China and North Asia at Standard Chartered Bank, reportedly said.

The Asian manufacturing giant saw its export momentum dip during the first two months of 2022. Economists point to reductions in the pandemic-driven consumer goods boom. Americans were sidelined from on-site jobs and flush with stimulus money that encouraged spending. Those days appear to be in the country’s rearview as inflation exceeds 40-year highs, and gas prices at the pump recently set a new record.

That may be just the tip of the spear as the Biden Administration moves to sanction Russia by banning the import of its oil. With the U.S. currently the most reliant on Russian oil imports in more than 20 years, another shortage would exasperate already frustrated consumers. Eliminating upwards of 3.5 percent of total petroleum resources could have a chilling effect on spending.

“The Russia-Ukraine conflict may cause prices of crude oil, natural gas, wheat, and others to soar for a period of time,” Chang Ran, senior researcher at Zhixin Investment Research Institute,” reportedly said.

It’s important to consider China’s export backslide in context. Demand for goods typically ramps up during the fourth quarter, and American consumers possessed increased discretionary revenue. Container ports became overwhelmed despite truckers leveraging increased hours-of-service opportunities offered by the Federal Motor Carrier Safety Administration in many cases.

According to the General Administration of Customs, Chinese exports rose by 16.3 percent during January and February. Insiders anticipated approximately 15 percent growth during the first two months of the year. However, these figures are a far cry from the blistering 20.9 percent export year-over-year surge posted in December. The Asian nation expanded global trade by a stunning 25 percent in 2021 to top a record $28.5 trillion. Heading into 2022, expectations hovering around 5.5 percent are now considered ambitious, if not unrealistic.

Although the economic trajectory appears troublesome, truckers are expected to be booked solid in the near future. According to U.S. Census Bureau data, imports from China exceeded $47.8 billion in January. That figure ranks slightly higher than the $47.4 billion in imports transported during August 2021.

The ports of Los Angeles and Long Beach continue to experience cargo vessel delays. More than 60 ships were reportedly idling off the coast of California during February. The U.S. also needs more than 81,000 CDL holders to meet domestic freight hauling demands.

Sources: wsj.com, forbes.com, reuters.com