A Rabobank analyst says a lack of congestion at ports is not the result of an improvement in the supply chain.
He says the markets are confusing the two, but it is really related to a collapse in demand. He adds that last week’s retail sales numbers, which were a huge miss, prove the slump.
While shippers are moving to other ports, he says do not believe charts that show the supply chain is healing. While shipping rates are back to normal levels on most routes, it is happening in the face of a looming recession.
