Imports at US Ports Seen Falling to Lowest Level Since Feb. '21: NRF

Imports at major U.S. container ports are expected to hit their lowest level in almost two years by year-end, said a Friday report from the National Retail Federation and Hackett Associates. NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said despite the lower volume, retailers are still experiencing challenges along the supply chain, citing U.S. ports and intermodal rail yards. “The growth in U.S. import volume has run out of steam, especially for cargo from Asia,” said Hackett Associates founder Ben Hackett, saying recent cuts in carriers’ shipping capacity reflect falling demand for merchandise from well-stocked retailers “even as consumers continue to spend.” Retailers who planned ahead with orders “have plenty of merchandise on hand to meet demand,” said NRF’s Gold. The closing of factories during China’s Golden Week holiday the first week of October combined with the Chinese government’s continuing “Zero Covid” policy have affected production, “reducing demand for shipping capacity from that side of the Pacific as well,” Hackett said. U.S. ports covered by Global Port Tracker handled 2.26 million 20-foot-long equivalent units (TEUs) in August, up 3.5% from July but down 0.4% year on year, said the report. September’s numbers haven’t been reported, but the port tracker projected the month at 2.07 million TEUs, down 3% from the prior year. It forecast a 6.1% drop in TEUs in December to 1.96 million, which would be the lowest since February 2021. For 2022, the report projects 26 million TEU, up 0.7% from last year’s record of 25.8 million.