The Shanghai Shipping Exchange recorded its second straight week of declining FEU (Forty-foot Equivalent Units or 40 ft. containers) shipping rates to both US West and East coast ports. The rates fell 0.4% down to $1724/FEU and 0.45% down to $3099/FEU.
While this is good news for US companies and consumers who may reap the benefits of the cost savings, it signals falling demand at home in America. With Chinese domestic consumption increasing, the country is expected to hit it’s 7.5% growth target for 2013 as reported by ANZ Greater China Chief Economist Liu Ligang.
Additionally, it was announced today that Blackstone, the world’s largest manager of alternative assets, would buy a $400 million stake in Chinese mall developer and operator SCP Co, indicating the investment firm’s bullish outlook on Chinese retail and consumption.
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