Friday, August 21, 2015

U.S. Containerized Exports Fall Off the Chart........ANOTHER PESKY FACT!

U.S. Containerized Exports Fall Off the Chart

The volume of US exports shipped by container carrier in July plunged 5.8% from an already dismal level in June, and by 29% from July a year ago. The index is barely above fiasco-month March, which had been the lowest in the history of the index going back to the Financial Crisis.

The index tracks export activity in terms of the numbers of containers shipped from the US. It doesn't include commodities such as petroleum products that are shipped by specialized carriers. It doesn't include exports shipped by rail, truck, or pipeline to Mexico and Canada. And it doesn't include air freight, a tiny percentage of total freight. But it's a measure of export activity of manufactured and agricultural products shipped by container carrier.

There are consequences for the US bond market that has so vigorously and blindly funded all comers. Companies gorged on debt, even junk-rated companies. But now things are coming unglued at the riskiest end.

US-Freight-Index-exports-2010_2015-07

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