Retailers: Monthly import cargo rising despite challenges

Monthly inbound cargo volume at major U.S. container ports is continuing to rise despite supply chain challenges, according to a Global Port Tracker report released yesterday by the National Retail Federation (NRF) and Hackett Associates.

“Lulls between supply chain challenges seldom last long, and importers are currently looking at issues including high shipping rates, unresolved port labor negotiations and continuing capacity and congestion issues from the ongoing disruptions in the Red Sea,” said NRF Vice President for Supply Chain and Customs Policy Jonathan Gold in a news release. “Despite all of that, we’re experiencing the strongest surge in volume we’ve seen in two years, and that’s a good sign for what retailers expect in sales.”

Attacks on shipping in the Red Sea earlier this year have had an impact “beyond earlier expectations” due to lack of sufficient capacity to make up for longer voyages to avoid the region, said Hackett Associates founder Ben Hackett.

“The risks to global trade growth continue to increase,” he said. “We are in a volatile situation with multiple pressures on the movement of goods, underpinned by continued inflationary pressures.”

U.S. ports covered by Global Port Tracker handled 2.08 million 20-foot equivalent units (TEUs) in May, up 3% from April and 7.5% year over year. It was the highest monthly volume since 2.26 million TEUs were recorded in August 2022.

Volume in the first half of 2024 is expected to total 12.04 million TEUs, which would be a 14.4% gain from the same period last year.