The Journal of Commerce, an industry trade publication that covers transportation, is reporting that trans-Pacific container rates are tumbling.
Dewry Shipping Consultants told JOC that the spot rate for shipping a loaded 40-foot container from Hong Kong to Los Angeles fell 6.7% the past week to $1,636. It’s the second decline in as many weeks for this key measure of international trade and the lowest rate since December.
The rate was $2,624 a year ago.
Meanwhile, the U.S. Department of Transportation’s TSI Index, which measures freight within the U.S., is also taking a beating. Freight carried by for-hire transportation carriers declined 1.8 percent in May from April to an six-month low. The Freight TSI is a seasonally adjusted index measuring ton-miles carried by for-hire trucking, rail, inland waterways, pipelines and air freight carriers.
What’s going on?
High oil prices are suffocating U.S. consumers and leaving us with less money for other products, like the Chinese-made stuff we buy at Wal-Mart. The other problem is that our elites keep moving jobs to low-wage economies, which means there just aren’t as many U.S. families with paychecks coming in.
When our elites moved the factories to China that make high-priced U.S. consumer goods they hoped to cash in by continuing to keep them at top prices here while paying next to nothing to the workers they gave our jobs to. That’s why we’re having such a hard time creating jobs over here.
Without jobs the mighty U.S. consumer lacks the buying power to make CEO wet dreams come true. It’s not complicated. The painful truth is that without increased government regulation our hyper-competitive private sector is incapable of acting together to advance the greater good. So, we’re going down the tubes.