The latest Bloomberg Trade Tracker reveals an ominous outlook for world trade due to soaring interest rates, the war in Ukraine, a slowdown in the US economy, and zero Covid in China. A shortage of containers has entirely reversed into a glut as crashing shipping rates and canceled sails gain momentum during what is supposed to be the busiest shipping period of the year.
“The world’s two biggest economies are feeling glum about the export outlook, with both the US and China gauges in contraction in October and the American one in “below-normal” range on the Tracker,” according to Bloomberg.
Earlier this week, we explained that economic storm clouds are gathering worldwide as some of the largest shipping companies warn about decelerating global trade. US shipper FedEx and Danish shipping giant A.P. Moller-Maersk A/S have been vocal about emerging signs of a global slowdown.