A cargo plane in DHL livery passes a FedEx livery plane parked at a FedEx regional hub at Los Angeles International Airport (LAX) on September 16, 2022 in Los Angeles, California.
Bing Guan reuters
Spring has arrived for US imports, and the trade being exported from China is focused on items you would expect to sell well even in a low-demand environment.
According to data from ImportGenius and Bills of Lading, ahead of the peak accommodation season and summer, home goods such as wrought iron outdoor furniture, bookcases, doors and lamps are the top items coming into the country pending customs paperwork. Which gives details of the products in the containers.
This is the second consecutive month that US imports have increased and are above 2019 levels, according to data provided to CNBC from Descartes Datamine, a global trade data platform. The combination of a slow recovery from “zero Covid” in China and the reopening of manufacturing plants in the country delayed exports.
But Tim Sharvath, global CEO of DHL Global Forwarding, said the overall import trade trend remains soft, and it will take time for volumes to come back as retailers are still trying to reduce their inventories.
Indeed, Warren Buffett, chairman and CEO of Berkshire Hathaway, which oversees a vast network of independently run retail companies, said at his company’s annual meeting last week, “It’s a different environment than it was six months ago. And many of our managers were surprised. Some of them had a lot of inventory on order, and then suddenly it was delivered, and people were not in the same mindset as before. Now we would start selling when we didn’t need it. First.”
“It’s more important right now to talk to customers and listen to what they’re saying,” Sharwath told CNBC. “They’re all pushing for the second half. It doesn’t matter what industry they’re in. They’ll say please be patient. We’re seeing our booking volume increase in the second half of the year. I don’t “It seems that some kind of big growth will be seen in June, July.”
There is a sharp double-digit decline, particularly compared to 2022, he said, driven primarily by demand decline as a result of higher energy prices and inflation. “I expect consumption in the U.S. to pick up again and inventory levels will really start to go down,” Sharwath said.
Marine orders from sonar represent modest growth in future marine freight bookings.
Despite the Covid crisis being declared over from a health perspective, Sharwath said supply chain issues remain a hindrance to overall trade volumes.
“Another issue that some large retailers and large manufacturers have is the management of their supply chains. You can lose products in the supply chain because of different warehouses and vendor storage. This is why for example you may not get a few pairs of sneakers. “Last year in certain colors because they couldn’t find them in their storage supply chain,” he said.
There have been major changes in manufacturing locations across Asia, as DHL eyes increasing volumes from Vietnam, Malaysia and Thailand, and other companies are also involved. Foxconn And SAMSUNG Move some of your manufacturing from China to Vietnam.
“It’s not a lot of volume where China needs to be concerned because of the amount of manufacturing they export, but we are seeing more high-quality tech products going to other ‘China Plus’ countries,” Sharwath said. Have been.” “Phone makers and tech manufacturers are going to that part of the world to manufacture their products. Manufacturers like Foxconn have the ability to make their products in any part of the world, as long as they can find a workforce that they can utilize.” We can train their machines to do this. We’ll see these types of products growing more and more now.”
The top Vietnamese imports in the latest data are iron fences and plant stands, with companies importing Home Depot. Black Jewelery Bags and T-shirts for Men and Boys for Zales Nike The list was compiled from US import data from China, Vietnam, Thailand and India reviewed by CNBC.
There was no distinct product leader in Taiwan’s imports. Vehicles, parts, machinery and plastics were the top product categories.
India’s trade growth
India’s export story is one of the most remarkable, with companies including Apple and Boeing talk about both manufacturing and consumer opportunities in the country. But for now, it’s an assortment of lesser-known consumer and industrial goods that are leading the way.
In April, trade data showed that containers of vitamins and pencils came from India wal-martAnd zip for polo and t-shirt Estimate, The largest quantity of products imported into the Houston port from India were bundles of Zenith brand high frequency induction-welded set pipes.
Sharwath said that due to the tough stance taken by the central government of Prime Minister Narendra Modi on the economy in India, it is becoming attractive for companies to invest there.
“It has become interesting because of the growing Indian market,” he said of India’s business development. “The middle class market there would want some luxury items. Apple This is a famous example of a company now entering India. I think India will win in the long run. If India stays on track they are able to attract more business; They will also attract more infrastructure capacity into the country.”
But he pointed to some major logistics issues that India still has to resolve. “Ocean is halfway OK. Air freight is a different story. There is no good passenger airline or good air freight airline in India,” he said.
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