This summer, import volumes to the U.S. started to drop dramatically, which is a strong sign that inflation is taking its toll on consumer demand. With trans-Pacific shipping rates falling by at least 75 percent from one year ago, it is now clear that people are reducing their spending significantly.

The cancellations being seen right now represent a dramatic reversal from the situation a few months ago, when a lack of shipping space saw freight rates skyrocket and record-setting profits for carriers. It was just a year ago when companies such as Home Depot and Walmart had to charter their own ships to overcome port bottlenecks and meet surging demand.

This major drop in shipping rates comes as demand weakens and big retailers cancel their orders with vendors and seek to reduce their inventories. Nike recently announced that it had 65 percent more inventory than a year ago and will need to use markdowns to start moving stock, while FedEx said it will be canceling flights and parking cargo planes as shipping volumes drop.