Prime Freight’s summary of a January 2023 report by Tradeshift, as published by AJOT. Read the original for the full story.
Tradeshift’s Index of Global Trade Health for the fourth quarter of 2022 showed US order volumes falling at their fastest rate since the first Covid lockdowns, even as global trade activity improved slightly.
Worldwide, trade transactions ended the quarter 3 points below Tradeshift’s baseline, a small improvement on the 5-point shortfall in the third quarter, and the Eurozone and UK followed the same pattern. The US went the other way: transactions slipped to 6 points below the expected range, and orders finished 9 points below baseline, the sharpest reversal in buying since early 2020.
Tradeshift’s chief executive said the US drop might be a one-off as companies worked through excess inventory, but could also be an early sign of consumers cutting back. Transport and logistics ended the year 11 points below baseline after falling steadily. China was 4 points below baseline as it emerged from zero-Covid amid a surge in cases, and Tradeshift questioned whether supply chains that had moved away during the pandemic would return.
What it meant for shippers
Falling orders tend to reach freight markets a few months later as lower volumes, softer rates and spare capacity. For shippers, early 2023 was a time to revisit contracts and routings rather than compete for space.