Imports at major US container ports are expected to fall to their lowest level in nearly two years by the end of this year even though retail sales continue to grow, according to the monthly Global Port Tracker report released recently by the National Retail Federation (NRF) and Hackett Associates. The first half of the year totalled 13.5 million twenty-foot equivalent units (TEU)—a 5.5 per cent increase year over year (YoY).

The forecast for the remainder of the year would bring the second half to 12.5 million TEU, down by 4 per cent year over year. For the full year, 2022 is expected to total 26 million TEU, up by 0.7 per cent from last year’s annual record of 25.8 million TEU.

US ports covered by the tracker handled 2.26 million TEU in August. That was up by 3.5 per cent from July this year but down 0.4 per cent from August 2021.

“Many retailers brought in merchandise early this year to beat rising inflation and ongoing supply chain disruption issues. Despite the lower volumes, retailers are still experiencing challenges along the supply chain, including US ports and intermodal rail yards,” NRF vice president for supply chain and customs policy Jonathan Gold said in a statement.

“The growth in US import volume has run out of steam, especially for cargo from Asia,” Hackett Associates founder Ben Hackett said.

“Recent cuts in carriers’ shipping capacity reflect falling demand for merchandise from well-stocked retailers even as consumers continue to spend. Meanwhile, the closure of factories during China’s October Golden Week holiday along with the Chinese government’s continuing ‘Zero COVID’ policy have impacted production, reducing demand for shipping capacity from that side of the Pacific as well,” he said.

Ports have not yet reported September’s numbers, but the tracker projected the month at 2.07 million TEU, down by 3 per cent YoY.

Imports are expected to bounce back briefly in January 2023, which is forecast at 2.06 million TEU, but that would be down by 4.9 per cent from January 2022.

Fibre2Fashion News Desk (DS)

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