There is an explosion of idle containers in Shanghai, and they must be piled up in the leased land of Taicang Port in neighboring Jiangsu Province.

(Reuters)

[Compile Wei Guojin/Taipei Report] The South China Morning Post reported that investors who are betting heavily on the theme of China's recovery may bet too early, because exports of one of the main carriages of the Chinese economy have shrunk sharply. Containers piled up like a mountain.

Posts in Chinese media and social networks over the past month showed unused containers hitting multi-year highs, reflecting a gloomy export outlook and challenging Wall Street banks' optimism about China's economic recovery, the report said.

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A post on NetEase pointed out that Shanghai Yangshan Port, once the busiest port in the world, had to rent vacant space from Taicang Port in neighboring Jiangsu Province to store idle containers, and some port workers’ vacations were doubled.

In addition, according to Sohu.com, the number of empty cabinets in Shenzhen Yantian Port is as high as 7 stories, the highest record in 3 years

"We are generally cautious about export-related stocks this year, such as shipping and port operations; given overseas conditions, external demand should be weak, and these stocks It will not be the focus of our configuration this year."

The freight index for 15 routes has fallen 18% this year and 82% since January 2022, according to data from the Shanghai Shipping Exchange. , which is a warning sign.

According to the Chinese government report, China’s exports fell by 6.8% in the first two months of this year, compared with a 9.9% drop in December last year. With the tightening policy of the US Federal Reserve (Fed), economists continue to warn that the US may fall into recession this year. , China's export prospects cast a shadow.

CITIC Futures analyst Zhu Ziyue (transliteration, Zhu Ziyue) said that the fundamentals of the shipping industry are expected to deteriorate. "Looking at the demand side, imports from the United States and Europe will be under pressure, and freight rates will continue to drop to new lows in the second quarter. Earnings of companies in this industry are expected to decline sharply.”

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