The monthly inbound cargo volume at the US’ major container ports is on the rise, despite numerous supply chain challenges, according to the Global Port Tracker report released by the National Retail Federation (NRF) and Hackett Associates.

Ben Hackett, founder of Hackett Associates, stated that the latest figures reflect the broader impact of earlier shipping attacks in the Red Sea. These incidents have had a significant effect, surpassing initial expectations due to the insufficient capacity to offset the longer voyages required to avoid the affected region. Additionally, there is growing political support for higher and broader tariffs on imported goods, and concerns over the lack of a new contract with East Coast and Gulf Coast dockworkers are causing a shift in some cargo to West Coast ports. These factors collectively drive up shipping costs, ultimately affecting consumer prices.

In May, the US ports covered by the Global Port Tracker handled 2.08 million twenty-foot equivalent units (TEU), representing one 20-foot container or its equivalent. This figure was up 3 per cent from April and up 7.5 per cent year-over-year (YoY), marking the highest volume since 2.26 million TEU in August 2022. The total includes estimates for the ports of New York and New Jersey, which have not yet reported their TEU counts for May, as per NRF.

While June’s numbers are yet to be reported, the Global Port Tracker projected that the volume rose to 2.1 million TEU, a 14.5 per cent increase year-over-year. The forecast for July stands at 2.21 million TEU, up 15.5 per cent year-over-year; August is expected to see 2.22 million TEU, up 13.5 per cent; September at 2.1 million TEU, up 3.5 per cent; October at 2.05 million TEU, down 0.5 per cent; and November at 1.96 million TEU, up 3.5 per cent.

The first half of 2024 is anticipated to total 12.04 million TEU, marking a 14.4 per cent increase from the same period last year. In comparison, imports during 2023 totalled 22.3 million TEU, a 12.8 per cent decrease from 2022.

These import numbers coincide with the NRF's forecast that 2024 retail sales, excluding automobile dealers, gasoline stations, and restaurants to focus on core retail, will grow between 2.5 per cent and 3.5 per cent over 2023.

“Lulls between supply chain challenges seldom last long, and importers are currently looking at issues including high shipping rates, unresolved port labour negotiations and continuing capacity and congestion issues from the ongoing disruptions in the Red Sea,” said NRF vice president for supply chain and customs policy Jonathan Gold. “Despite all of that, we’re experiencing the strongest surge in volume we’ve seen in two years, and that’s a good sign for what retailers expect in sales. Consumers can rest assured that retailers will be well-stocked and ready to meet demand as we head into the back-to-school and holiday seasons.”

Fibre2Fashion News Desk (DP)