Imports in retail sector experiencing growth, yet predicted to fall short of pandemic highs, as per the latest report
The Global Port Tracker report, which provides data about ports in California, New York, New Jersey, Virginia, South Carolina, Georgia, Florida, Texas, and Washington state, has revealed that the first half of 2023 saw a decrease in import cargo volumes.
The report projects that the import cargo volume through major U.S. ports in the first half of 2023 totaled 12.53 million Twenty-foot Equivalent Units (TEUs), marking a 3.6% increase year over year. However, this figure is significantly lower than the annual record of 25.8 million TEU in 2021.
The decline in import volumes can be attributed to several factors. In February 2023, imports dropped to 1.55 million 20-foot units, a decrease of over 25% year over year. This was the lowest number of imports since May 2020, when many factories in Asia and U.S.-based retailers were closed due to the pandemic.
Demand is also down as more carriers drop service to Los Angeles-area ports. The retail inventory glut remained an ongoing issue last year, with retailers increasing promotional activity to try and ease the backlog.
The contract between the International Longshore and Warehouse Union and the Pacific Maritime Association expired last July. Many shippers have shifted cargo elsewhere to avoid potential disruption due to the expired contract. Carriers are now choosing to stretch some voyages to other ports to help absorb excess capacity.
The National Retail Federation (NRF) sent a letter to President Joe Biden in March, urging the administration to avoid disruptions to port operations and cargo movement. The letter was signed by nearly 240 national, state, and local trade associations.
Looking ahead, the report predicts an increase in import cargo volume at major U.S. ports through summer, but volumes will remain below record-setting levels seen during the pandemic. By July and August, the report forecasts a drop in volume nearly 4% and 6%, respectively.
It is important to note that the Global Port Tracker report focuses on data from 2024 and 2025. Projections for the first half of 2023 specifically are not explicitly stated in these reports. However, the pattern suggests fluctuations influenced heavily by tariff-related import timing shifts. For exact 2023 import cargo volumes, a dedicated 2023 Global Port Tracker report would be necessary.
In conclusion, the first half of 2023 saw a decrease in import cargo volumes at major U.S. ports compared to previous years. The Global Port Tracker report predicts an increase in import cargo volume through summer, but volumes will remain below record-setting levels seen during the pandemic.
- The decline in import volumes during the first half of 2023 might be mitigated by optimistic policies aimed at restarting trade after the pandemic.
- The editorial, published in the Journal of Global Trade, discusses the potential role of AI in predicting financial risks associated with the war in Ukraine and its impact on import-export policies.
- The labor union and the port management are currently discussing new policies to ensure efficient labor management and prevent potential disruptions in trade, such as work stoppages.
- In the second half of 2023, the continued decline in import cargo volumes could create financial challenges for import-dependent industries, necessitating government support and intervention.
