With a pandemic-driven surge finally over, monthly import cargo volume at the nation’s major container ports has fallen below the 2 million twenty-foot equivalent unit (TEU) mark and should remain there through most of spring, according to the Global Port Tracker report released by the National Retail Federation (NRF) and Hackett Associates.
“Ports have been stretched to their limits and beyond but are getting a break as consumer demand moderates amid continued inflation and high interest rates,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Consumers are still spending and volumes remain high, but we’re not seeing the congestion at the docks and ships waiting to unload that were widespread this time a year ago. It’s good to escape some of the pressure, but it’s important to use this time to address supply chain challenges that still need to be resolved like finalizing the West Coast port labor contract.”
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Imports plummeted to a four-year low of 1.37 million TEU in March 2020 as Covid-19 prompted the temporary shutdown of much of the nation’s economy. But cargo soared after the shutdowns ended and pent-up consumer demand was unleashed that summer, topping 2 million TEU by that August and staying there all but one month until this winter.
“After nearly three years of Covid-19’s impact on global trade and consumer demand, import patterns appear to be returning to what was normal prior to 2020,” Hackett Associates Founder Ben Hackett said. “Nonetheless, as inflation eases and consumer spending returns, we project that growth will slowly return going into the second half of the year.”
