Monthly domestic-bound cargo volume at major American container ports is rising despite persistent supply chain challenges, according to the Global Port Tracker report released recently by the National Retail Federation 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 VP for supply chain and customs policy, Jonathan Gold, in a statement.
Hackett Associates founder Ben Hackett added background information about some of these supply chain challenges. They include attacks on shipping freights in the Red Sea which are forcing ships to take longer routes, political support for higher and broader tariffs on imported goods continue to expand, and worries over the failure to reach a new contract with East Coast/Gulf Coast dockworkers is shifting some cargo to the West Coast. The end results drive up prices for shipping and, in turn, consumers, said NRF.
“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,” said Gold. “Consumers can rest assured that retailers will be well-stocked and ready to meet demand as we head into the back-to-school and holiday seasons.”
U.S. ports covered by Global Port Tracker handled 2.08 million Twenty-Foot Equivalent Units (TEU) in May, the latest month for which final numbers are available. That was up three percent from April, 7.5 percent year-over-year, and was the highest number since 2.26 million TEU in August 2022.Ports have not yet reported June’s numbers, but Global Port Tracker projected that volume rose to 2.1 million TEU, up 14.5 percent year-over-year, said NRF. The first half of 2024 is expected to total 12.04 million TEU, up 14.4 percent from the same period last year. (SFA)
