Retail

Climbing US imports below pandemic time peaks: NRF-Hackett Associates

10 Apr '23

2 min read

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Insights

Import cargo volume at major US container ports should climb steadily this summer, but will remain below record-setting levels of pandemic times, the Global Port Tracker report by the National Retail Federation and Hackett Associates.
US ports handled 1.55 million TEU in February—down by 14.4 per cent from January and down by 26.8 per cent year on year.

Import cargo volume at major US container ports should climb steadily this summer, but will remain below record-setting levels seen during most of the pandemic, according to the Global Port Tracker report released recently by the National Retail Federation (NRF) and Hackett Associates.

“Last spring and summer were the busiest ever as consumers spent freely and retailers brought in merchandise to meet demand,” NRF vice president for supply chain and customs policy Jonathan Gold said.

“This year won’t repeat that, but the numbers we’re expecting would have been considered normal before the pandemic. The priority at the moment is resolving labor negotiations at the West Coast ports and avoiding any self-inflicted supply chain challenges on top of those we’ve faced the past three years,” he said in an NRF press release.

The contract between the International Longshore and Warehouse Union and the Pacific Maritime Association expired on July 1 last year. Workers remain on the job, but many shippers have shifted cargo elsewhere to avoid any potential disruption. Negotiations between both sides are under way.

“Compared with last year, the flow of import containers on the West Coast continues to decline along with demand as carriers increasingly drop service to Los Angeles-area ports but stretch voyages to include other ports of call to help absorb excess capacity,” Hackett Associates founder Ben Hackett said.

Meanwhile, freight rates have been affected by the fall in demand, but new ships are starting to show up and more have been ordered—a sign that carriers expect demand will improve by the time the new vessels are delivered, he added.

US ports covered by the tracker handled 1.55 million twenty-foot equivalent units (TEU) in February—down by 14.4 per cent from January and down by 26.8 per cent year on year (YoY).

February is historically the slowest month of the year, but the number was the lowest since 1.53 million TEU in May 2020, when many factories in Asia and most US stores were closed due to the pandemic.

The first half of 2023 is forecast at 10.8 million TEU, down by 20.2 per cent YoY. Imports for all of 2022 totaled 25.5 million TEU, down by 1.2 per cent from the annual record of 25.8 million TEU set in 2021.

Fibre2Fashion News Desk (DS)

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