Import container volumes continue to point to domestic freight market slowing
Chart of the Week: National Trucking Index – USA, Inbound Ocean TEUs Index – China to USA SONAR: NTI.USA, IOTI.CHNUSA
Back in the early part of the pandemic, companies began to import goods at an incredible pace, leading to the unprecedented rise in the truckload spot market rates. The connection between imports and trucking is not always this consistent, but the pandemic has strengthened their relationship thanks to an acceleration of growth in e-commerce and societal shifts.
The Inbound Ocean TEUs Index (IOTI) measures bookings based on their estimated time of departure from their origination ports. This particular granularity measures bookings originating in China to the U.S., which saw a sharp rise in May of last year as the shopping spree began.
Bookings from China to the U.S. were up 16% year-over-year (y/y) on June 1, 2020, while trucking spot rates as measured by the National Trucking Index (NTI) were down 10% over the same period.
Transit times from China to the ports of Los Angeles and Long Beach — representing the bulk of the inbound volume for imported goods for the U.S. — averaged around 15 days as reported by the ocean carriers in May 2020, according to SONAR Container Atlas (SCA). This means there was at least two weeks’ lead time before domestic rail and trucking operators felt the demand side pressure.
By the end of July 2020, China to U.S. bookings were up 72% y/y…
