U.S. import demand is falling off a cliff, and February may see the biggest drop in three years!

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 U.S. container ports will drop sharply in February, hitting the lowest level since March 2020.

Jonathan Gold, NRF's vice president for supply chain and customs policy, said that as the U.S. economy slows and consumers worry about rising interest rates and high inflation, retailers are importing fewer goods, and import cargo volumes at ports have slowed as a result.

Although February is a slow month, we saw imports fall to the lowest level in three years. Retailers remain cautious as they deal with inflation and economic recession. "Gold added.

Ben Hackett, founder of Hackett Associates, said: "The economic environment in 2023 is reminiscent of 2020, when various industries were shut down due to the outbreak. However, at present, there is still great uncertainty in the economy. On the one hand, import freight volumes are declining and the economy is in a contradiction between rising employment and wages; on the other hand, high inflation and rising interest rates are threatening a recession."

The report shows that in December 2022, U.S. ports handled a total of 1.73 million TEUs, down 2.6% from the previous month and down 17.1% from the same period last year. In 2022, U.S. ports handled a total of 25.5 million TEUs, down 1.2% from the annual record of 25.8 million TEUs set in 2021. Ports' handling volume increased significantly in the first half of 2022, but fell sharply in the second half of the year.

Ports have not yet reported numbers for January 2023. But Hackett Associates predicts that U.S. ports will handle 1.78 million TEUs in January, down 17.6% year-over-year. The forecast for February is 1.57 million TEUs, down 25.6% from the same month last year, which would be the lowest since May 2020, as many factories in Asia and most U.S. stores were closed due to the pandemic. In the first half of 2022, U.S. ports are expected to handle a total of 10.9 million TEUs, down 19.4% from the first half of 2022.

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