Imports Set New Record at U.S. Ports
Imports at the nation’s major retail container ports set a new record this spring and are expected to see near-record volume this month as retailers bring in merchandise ahead of rising costs and further supply chain issues, according to the monthly Global Port Tracker report released by the National Retail Federation and Hackett Associates.
“Retailers are importing record amounts of merchandise to meet consumer demand, but they also have an incentive to stock up before inflation can drive costs higher,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Whether it’s freight costs or the wholesale cost of merchandise, money retailers save is money that can be used to hold down prices for their customers during a time of inflation. In addition, retailers are preparing for any potential disruptions because of the West Coast port labor negotiations, which are set to begin next week. NRF has previously encouraged the parties to remain at the table and not engage in disruptions if a new contract is not reached by the time the current agreement expires July 1.”
U.S. ports covered by Global Port Tracker handled 2.34 million Twenty-Foot Equivalent Units – one 20-foot container or its equivalent – in March, the latest month for which final numbers are available. That was up 10.8 percent from February and up 3.2 percent year over year. It also topped the previous record of 2.33 million TEU set in May 2021 for the number of containers imported in a single month since NRF began tracking imports in 2002.
Ports have not yet reported April numbers, but Global Port Tracker projected the month at 2.27 million TEU, up 5.7 percent from last year. May is forecast at 2.3 million TEU, which would be down 1.4 percent from last year but nonetheless the third-highest level on record.
“Consumer spending is growing faster than income growth, perhaps as shoppers buy ahead of expected rising prices,” Hackett Associates Founder Ben Hackett said. “Importers are doing much the same as they continue to replenish their inventories. Doing so will protect them against potentially rising freight costs, further delays in the supply chain and complications in upcoming labor negotiations at U.S. West Coast ports.”
AUTHOR: CPA Practice Advisor
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