US ports to see cargo volumes growth amid Red Sea disruptions: Report

12 Mar '24

3 min read

Pic: Adobe Stock

Insights

Despite Houthi rebel attacks disrupting Red Sea routes, US container ports are set to see YoY cargo volume increases through the first half of 2024.
Carriers have rerouted shipments, mitigating delays.
January 2024 saw a 1.96 million TEU throughput, up 8.6 per cent from last year, with forecasts indicating continued growth across the coming months.

Despite the challenges posed by ongoing Houthi rebel attacks on commercial vessels navigating the Red Sea, the US’ major container ports are poised to register year-over-year increases in inbound cargo volumes through the first half of 2024, according to the forecast from the latest Global Port Tracker report, jointly released by the National Retail Federation (NRF) and Hackett Associates.

In response to the heightened risk in the Red Sea, carriers have adapted by rerouting their shipments. The initial spike in shipping costs and delays has begun to ease. To circumvent the troubled waters, some cargo that would have traditionally passed through the Red Sea and the Suez Canal to the US East Coast is now being redirected around the Cape of Good Hope. Additionally, there has been an increase in cargo volume across the Pacific to the West Coast, with some vessels also opting for a Pacific crossing followed by a journey through the Panama Canal to reach the East Coast.

US ports monitored by Global Port Tracker processed 1.96 million twenty-foot equivalent units (TEU) in January 2024, marking an increase of 4.7 per cent from December and an 8.6 per cent uplift from the previous year. Though the February figures have yet to be reported, the Global Port Tracker has projected a significant 22.7 per cent year-over-year increase for the month, with an expected volume of 1.9 million TEU.

March is anticipated to see 1.77 million TEU, up 8.8 per cent from the prior year. The forecast for the following months also shows continued growth, with April expected to reach 1.84 million TEU (up 3.1 per cent), May at 1.94 million TEU (up 0.5 per cent), June at 1.94 million TEU (up 5.7 per cent), and July at 1.99 million TEU (up 3.8 per cent).

The report estimates a total of 11.5 million TEU for the first half of 2024, which represents a 7.8 per cent increase from the same period in the previous year. This upward trend is a positive shift from the 22.3 million TEU imported during the entirety of 2023, which saw a 12.8 per cent decrease from 2022.

“Retailers continue to work with their partners to mitigate the impact of disruptions from the Red Sea and Panama Canal restrictions,” said NRF vice president for supply chain and customs policy Jonathan Gold. “Cargo has been rerouted and goods are arriving where they are needed and in time to meet consumer demand despite the ongoing challenges. Retailers have been impacted by costs and shipping delays, but they are working to minimise any impact on consumers.”

Fibre2Fashion News Desk (DP)

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