U.S. imports fall back to pre-pandemic levels, expected to fall 22% year-on-year in the first half of the year

It is learned that according to the latest monthly global port tracking report released by the National Retail Federation (NRF) and Hackett Associates, the import cargo volume at major US container ports in the first half of 2023 will drop 22% compared with the same period last year.

The report comes amid disruptions at major West Coast ports as the Pacific Maritime Association (PMA) and the International Warehouse and Longshore Union (ILWU) have failed to reach a new labor agreement after more than a year of negotiations.

“Retailers are entering their busiest shipping season of the year,” said Jonathan Gold, NRF’s vice president of supply chain and customs policy. “As they work to secure holiday merchandise, the last thing retailers and other shippers want is continued disruptions at ports.”

If the PMA and ILWU cannot reach an agreement and operate smoothly and efficiently, retailers will have no choice but to continue shipping goods to ports on the East Coast and Gulf Coast. Jonathan Gold further stated.

On Monday (June 5), NRF urged the White House to intervene in labor negotiations at West Coast ports after terminals at the Port of Oakland and the Port of Long Beach stopped operating. Jonathan Gold emphasized: "We will continue to urge the government to intervene to help the two sides reach an agreement to end the terminal disruptions and enable the ports to resume normal operations. In the past two years, we have encountered inevitable supply chain problems. Now, we still can't avoid it."

“The decline in container import demand now runs counter to continued growth in consumer demand,” said Ben Hackett, founder of Hackett Associates. “While strong employment and personal income growth have boosted consumer spending, import container freight volumes have returned to 2019 levels and are not expected to increase in the short term.”

The report showed that U.S. ports handled a total of 1.78 million TEUs (a 20-foot container or its equivalent) in April, up 9.6% from March but down 21.3% from the same period last year.

Ports have not yet reported data for May, but Global Port Tracker forecasts 1.84 million TEU for the month, down 23% year-over-year. June is forecast to be 1.91 million TEU, down 15.3% from the same month last year. Overall, major U.S. container ports will handle 10.5 million TEU in the first half of 2023, down 22.3% from the first half of 2022.

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