Imports at major US ports to slow significantly in H2 2022: NRF

US ports covered by Global Port Tracker handled 2.25 million Twenty-Foot Equivalent Units (TEU)—one 20-foot container or its equivalent—in June, the latest month for which final numbers are available. That was down 5.9 per cent from May’s 2.4 million TEU—the largest number of containers imported in a single month since NRF began tracking imports in 2002—but up 4.9 per cent year over year. June’s results brought the first half of the year to 13.5 million TEU, a 5.5 per cent increase year over year.

“Retail sales are still growing, but the economy is slowing down and that is reflected in cargo imports,” NRF vice president for supply chain and customs policy Jonathan Gold said. “Lower volumes may help ease congestion at some ports, but others are still seeing backups and global supply chain challenges are far from over. Our biggest concern is the potential for disruption because of separate labour negotiations at the West Coast ports and the freight railroads. Concluding both sets of negotiations without disruption is critical as the important holiday season approaches.”

The contract between the International Longshore and Warehouse Union and the Pacific Maritime Association expired July 1, and many retailers brought in cargo early and shifted to East and Gulf Coast ports to avoid any potential disruptions related to contract negotiations, with early shipments helping drive second-quarter volumes. The freight railroads and their union are now working with a Presidential Emergency Board to resolve their contract discussions, which have been ongoing for two years. In addition, the Port of Oakland was briefly shut down in late July amid protests by independent truckers over a new state law aimed at eliminating independent owner-operators, the report said.

Ports have not yet reported July’s numbers, but Global Port Tracker projected the month at 2.26 million TEU, up 3.2 per cent year over year. August is forecast at 2.2 million TEU, down 3 per cent; September at 2.15 million TEU, up 0.4 per cent; October at 2.13 million TEU, down 3.9 per cent; November at 2.06 million TEU, down 2.7 per cent, and December at 2.03 million TEU, down 3 per cent.

Those numbers would bring the second half of the year to 12.8 million TEU, down 1.5 per cent from the same period last year. But 2022 overall is expected to total 26.3 million TEU, up 2 per cent from last year’s annual record of 25.8 million TEU.

The cargo data comes as NRF continues to forecast that 2022 retail sales will grow between 6 per cent and 8 per cent over 2021. Sales were up 7 per cent during the first half of the year.

ALCHEMPro News Desk (KD)