Imports to US reach consecutive record highs
Imports to US ports set a second all-time monthly record high this summer as retailers brought in merchandise for the busy holiday season, and are continuing at unusually high levels this month.
That’ according to the monthly Global Port Tracker report that has been released by the National Retail Federation and Hackett Associates.
“When imports break records two months in a row, it’s hard to see that as anything other than a good sign about what retailers expect in consumer demand,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said.
“Consumers are buying more, and everybody from dockworkers to truck drivers is trying to keep up. We hope this is a sign of a strong holiday season for retailers, shoppers and our nation’s economy.”
Ports covered by Global Port Tracker handled 1.8mn Twenty-Foot Equivalent Units in August, the latest month for which after-the-fact numbers are available.
The volume was the highest recorded since NRF began tracking imports in 2000, topping the previous record of 1.78mn TEU set just one month earlier in July.
The record before that had been 1.73mn TEU in March 2015. August was up 1.4% over July and 5.6% over August 2016. A TEU is one 20-foot-long cargo container or its equivalent.
September was estimated at 1.65mn TEU, up 3.7% from last year, and October is forecast at 1.72mn TEU, up 2.8%. While not a record, the October number would be one of only six times in the report’s history that any month has hit 1.7mn TEU or higher.
November is forecast at 1.62mn TEU, down 1.7% from last year, and December is forecast at 1.59mn TEU, up 1.3%.
Growth has slowed from the first half of the year but 2017 is expected to total 19.8mn TEU, topping last year’s previous record of 18.8mn TEU by 5.4%. That compares with 2016’s 3.1% increase over 2015. The first half of 2017 totalled 9.7mn TEU, up 7.5% from the same period in 2016.
January 2018 is forecast at 1.64mn TEU, down 2% from January 2017, and February is forecast at 1.58mn TEU, up 10% from the same month in 2017.
The import numbers come as NRF is forecasting that 2017 retail sales will grow between 3.2 and 3.8% over 2016 and that this year’s holiday sales will grow between 3.6 and 4%.
Cargo volume does not correlate directly with sales because only the number of containers is counted, not the value of the cargo inside, but nonetheless provides a barometer of retailers’ expectations.
“The volume of containers imported through August continues to grow and we expect this to continue through October before a slack period arrives as the holiday season inventory build-up comes to an end,” Hackett Associates Founder Ben Hackett said.
“We do expect growth in imports to slacken off in the coming year, but it will still remain positive.”