Bullwhip effect rears its head during peak U.S. import season
Last week, we forecast a further decline in U.S. containerized import volumes in the second half of 2023, and a “new” bottom for volumes during this downcycle. The lingering effects of the “bullwhip effect” on inventories, along with the considerable downside risks that exist to consumer spending, the upcoming months are likely to witness an unprecedented level of caution among importers during this year’s peak season. This caution, combined with a weakening global macroeconomic backdrop, only heightens the risks of declining import volumes.
White House comments on port disruptions
White House Press Secretary Karine Jean-Pierre avoided saying whether the White House has plans to intervene in the West Coast port dispute when asked during a Wednesday briefing.
“So when it comes to the [West Coast] ports, I can say that the President respects the collective bargaining process,” Jean-Pierre said, according to a transcript of the briefing. “And [Acting Labor Secretary Julie Su] and others in the administration are regularly engaging with the parties, encouraging them to stay at the negotiating table and finish their work.”
China Lobbies EU Over Proposal to Punish Firms Supplying Russia
China is putting pressure on the European Union behind closed doors to scrap proposed trade restrictions on Chinese companies the bloc says are enabling Russia’s war machine in Ukraine, according to people familiar with the matter.
Chinese diplomats have met with their European counterparts in Brussels and Beijing in recent weeks as part of a campaign to persuade officials to drop the blacklist, the people said. The European Commission is considering measures on eight Chinese firms it says are “directly supporting Russia’s military and industrial complex,” according to documents seen by Bloomberg News in May 2023.
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