The National Retail Federation (NRF)
has reported that US retail imports at retail container ports remain high but
port congestion is impacting operations.
The latest Global Port Tracker report by the NRF and
Hackett Associates has revealed US retail imports at the US’s largest retail
container ports should remain at near-record levels this month. It could see a
slight dip from last year’s unusually high numbers however as congestion slows
the movement of backed-up cargo.
NRF Vice President for Supply Chain and Customs Policy
Jonathan Gold explained: “The cargo is there for larger gains at several ports
but congestion issues are impacting fluid operations.”
He added: “Ships will eventually get unloaded but the
pressure is on for everyone to work together to get the containers out as
quickly as possible. Retailers are doing whatever it takes to make sure shelves
are well-stocked for the holidays, from bringing in merchandise earlier to
chartering their own ships. Consumers should be able to find what they need,
but it’s always safer to shop early than wait until the last minute.”
Hackett Associates founder Ben Hackett pointed
out: “Just when we thought things couldn’t get any worse with the
logistics supply chain we’ve been proven wrong.”
He added: “From power outages and port shutdowns in
Asia to backed-up ships and shortages of truck drivers in the US, there are few
positive signs that the movement of consumer goods or the supply of inputs
needed for industrial production is getting better.”
Hackett explained Covid-19 infections in Asia have
slowed the loading of US-bound ships, while shortages of equipment, labour and
outbound truck and rail capacity have continued to build congestion at US
ports. Close to 75 ships were waiting at anchor to enter the Ports of Los
Angeles and Long Beach recently, up from around 25 a month earlier, and backups
are spreading to East Coast ports as well.
The US ports covered by the Global Port Tracker
handled 2.27 million 20-foot Equivalent Units in August, which is the latest
month for which final numbers are available.
This was up 3.5% from July and up 7.8% from a year
earlier and tied March as the second-busiest month since NRF began tracking
imports in 2002.
Ports have not reported September numbers yet, but
Global Port Tracker has projected the month at 2.25 million TEU, which would be
up 6.7% year-over-year.
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While October is forecast at 2.21 million TEU. That
would be down 0.3% from the same time last year, when imports surged
dramatically as the economy reopened after the first wave of Covid-19 and
retailers rushed to meet pent-up consumer demand, but still the sixth-busiest
month on record as imports remain high. The year-over-year decline would be the
first since July 2020.
The congestion and disruption usually comes in the
middle of the “peak season” for shipping when retailers stock up on holiday
merchandise each year, but many retailers began bringing in holiday goods over
the summer to be sure sufficient inventory will be available.
November is forecast at 2.16 million TEU, which would
be up 2.9% year-over-year, and December is forecast at 2.1 million TEU, down
0.2%. January 2022 is forecast at 2.17 million TEU, up 5.7% from January 2021,
and February 2022 is forecast at 1.9 million TEU, up 1.4% year-over-year.
The first half of 2021 totalled 12.8 million TEU, up
35.6% from the same period last year. For the full year, 2021 is on track to
total 26 million TEU, up 18.1% over 2020 and a new annual record topping last
year’s 22 million TEU. Cargo imports during 2020 were up 1.9% over 2019 despite
the pandemic.