Retailers: Import cargo to grow despite supply-chain disruptions

U.S. imports at the nation's major container ports are continuing to increase despite recent supply-chain disruptions, including the Port of Baltimore's shutdown following the March 26 collapse of the Francis Scott Key Bridge, according to the National Retail Federation (NRF).

Next month’s inbound cargo volume at the nation’s major container ports is expected to top 2 million units for the first time since fall 2023 as imports grow despite new supply chain challenges, according to the Global Port Tracker report released yesterday by the NRF and Hackett Associates.

"U.S. imports are continuing to increase despite another disruption impacting U.S. ports," said NRF Vice President for Supply Chain and Customs Policy Jonathan Gold in a press release.

Retailers were already adjusting to the limited use of the Panama Canal due to drought and disruptions in the Red Sea due to Houthi attacks on commercial shipping.

"While it is not expected to have a national impact, the tragic collapse of the Francis Scott Key Bridge shows the ongoing need for flexibility and resiliency in every company’s supply chain," Gold said. "We are monitoring the situation closely as retailers who are affected adjust their shipping plans to ensure cargo is getting to where it needs to be."

Baltimore is not included in Global Port Tracker’s national totals because its data is reported later than other ports, but the shutdown is having a regional impact, as cargo that would normally go there is being diverted to other East Coast ports, according to NRF. The port handled 48,000 20-foot equivalent units (TEUs) — one 20-foot container or its equivalent — in January.

"The Baltimore bridge accident will likely shift container imports and exports to New York/New Jersey, Virginia and other surrounding ports until a shipping channel is cleared, perhaps as soon as within a couple of months," said Hackett Associates founder Ben Hackett.

U.S. ports covered by Global Port Tracker handled 1.96 million TEUs in February, the latest month for which final numbers are available. That was down 0.3% from January but up 26.4% from the same month last year, when many Asian factories were closed for the Lunar New Year holiday.

The Key Bridge collapse and Baltimore port shutdown is affecting freight railroads. For example, Norfolk Southern Railway, one of two Class Is that serve the port, estimates a $50 million to $100 million impact on its revenue in in second-quarter 2024, the company announced yesterday.

In addition to collaborating with its customers, NS' response to the bridge collapse include the launch of a new dedicated service to facilitate the flow of freight between the Elizabeth Marine Terminal at the Port of New York and New Jersey and the Seagirt Marine Terminal in Baltimore. The U.S. Army Corps. of Engineers announced last week that the port is expected to reopen fully by the end of May.