World shipping has fallen into a deep slump over the late summer, dashing hopes of a quick recovery from theGLOBAL TRADE recession earlier this year and heightening fears that the six-year economic expansion may be on its last legs.
Freight rates for container shipping from Asia to Europe fell by over 20pc in the second week of August, even though trade volumes should be picking up at this time of the year. The Shanghai Containerized Freight Index (SCFI) for routes to north European ports crashed by 23pc in fiveTRADING DAYS.
The storm in the shipping industry comes as the New York state manufacturing index for July plummeted to a recessionary low of minus 14.9, the lowest since the Great Recession and one of the steepest one-month drops ever recorded.
This post was published at David Stockmans Contra Corner on August 18, 2015.
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