WASHINGTON – Imports set another record high this spring as the nation’s major container ports worked to reduce congestion and retailers stocked up before dockworkers’ West Coast labor contract expired, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.
“Cargo volume is expected to remain high as we head into the peak shipping season, and it is essential that all ports continue to operate with minimal disruption,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Supply chain challenges will continue throughout the remainder of the year, and it is particularly important that labor and management at West Coast ports remain at the bargaining table and reach an agreement.”
The contract between the International Longshore and Warehouse Union and the Pacific Maritime Association expired July 1, but cargo operations are continuing. NRF and more than 150 groups wrote to President Biden last week asking the administration to work with both sides to avoid disruption.
Ports saw a surge in activity this spring as a slowdown in cargo from Chinese factories closed by COVID-19 gave them a chance to clear built-up congestion. Retailers bringing in seasonal merchandise and importing other goods early to avoid any problems related to the contract negotiations may have also contributed to volume.
“Congestion of ships waiting to berth on the West Coast has eased, and we expect to see the same on the East Coast as carriers begin to return to their normal patterns of port calls,” Hackett Associates Founder Ben Hackett said. “After a short period of decline, freight rates are on the rise again as congestion in Europe and idle vessels there take capacity out of circulation.”
U.S. ports covered by Global Port Tracker handled 2.4 million Twenty-Foot Equivalent Units – one 20-foot container or its equivalent – in May, the latest month for which final numbers are available. That was up 6 percent from April and up 2.7 percent year over year. It also set a new record for the number of containers imported in a single month since NRF began tracking imports in 2002, topping 2.34 million TEU this March.
Ports have not yet reported June numbers, but Global Port Tracker projected the month at 2.25 million TEU, up 4.8 percent from the same month last year. That would bring the first half of the year to 13.5 million TEU, a 5.4 percent increase year over year.
July is forecast at 2.31 million TEU, up 5.3 percent from last year, and would be the fourth-busiest month on record. August is forecast at 2.26 million TEU, down 0.5 percent year over year; September at 2.12 million TEU, down 0.8 percent; October also at 2.12 million TEU, down 4.1 percent, and November at 2.06 million TEU, down 2.5 percent.
The year-over-year declines during the second half of the year contrast with unusually high numbers during the same period in 2021, but volumes remain high, and the full year is still expected to see a net increase over 2021. Imports for all of 2021 totaled 25.8 million TEU, a 17.4 percent increase over 2020’s previous annual record of 22 million TEU.
Global Port Tracker, which is produced for NRF by Hackett Associates, provides historical data and forecasts for the U.S. ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Port of Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast, and Houston on the Gulf Coast. The report is free to NRF retail members, and subscription information is available at NRF.com/PortTracker or by calling (202) 783-7971. Subscription information for non-members can be found at www.globalporttracker.com.
The National Retail Federation, the world’s largest retail trade association, passionately advocates for the people, brands, policies and ideas that help retail thrive. From its headquarters in Washington, D.C., NRF empowers the industry that powers the economy. Retail is the nation’s largest private-sector employer, contributing $3.9 trillion to annual GDP and supporting one in four U.S. jobs – 52 million working Americans. For over a century, NRF has been a voice for every retailer and every retail job, educating, inspiring and communicating the powerful impact retail has on local communities and global economies. NRF.com
About Hackett Associates
Hackett Associates provides expert consulting, research and advisory services to the international maritime industry, government agencies and international institutions. www.hackettassociates.com
Republished from the NRF Corporate News webpage