“While imports will decline year-over-year most months during the remainder of this year, that is largely because of high volumes seen last year as retailers rushed to bring in merchandise ahead of scheduled tariff increases,” according to the monthly Global Port Tracker report released Thursday by the National Retail Federation and Hackett Associates.
Hackett Associates founder Ben Hackett said the threatened new 10% tariffs on goods from China, including apparel and footwear, which President Donald Trump said he would impose on Sept. 1, would not likely have an immediate impact on import volumes. But an increase to 25% “would have a significant impact and would cause us to lower our trade projections further,” Hackett said.
“Even with virtually everything America imports from China soon to be subject to tariffs, it isn’t quick or easy for retailers to change their supply chains,” Jonathan Gold, vice president for supply chain and customs policy at NRF, said. “And even if sourcing eventually shifts away from China, it will simply come from other countries.”
U.S. ports covered by Global Port Tracker handled 1.8 million Twenty-Foot Equivalent Units in June, down 2.9% from May and 3% below year-ago levels. A TEU is one 20-foot-long cargo container or its equivalent.
July cargo imports were estimated to have fallen 2.6% year-over-year to 1.86 million TEU. August shipments are forecast to rise 0.6% to 1.91 million TEU, while declines are seen in September of 1.1% to 1.85 million TEU, and October of 6.2% to 1.91 million. Finishing the year, November cargo hitting U.S. ports is seen rising 1.8% to 1.84 million TEU, while December shipments are forecast to decline 7.9% to 1.81 million TEU.
The August and October numbers would be the highest monthly volumes since 1.96 million TEU last December, tying for the third-highest month on record behind that and the all-time record of 2 billion TEU set last October, Global Port Tracker noted.
The first half of 2019 totaled 10.5 million TEU, up 2.1% over the first half of 2018, and 2019 is expected to reach 21.7 million TEU. That would come within 0.4% of last year’s record 21.8 million TEU, which was up an unusually high 6.2% over 2017.
Global Port Tracker covers the U.S. ports of Los Angeles-Long Beach and Oakland, Calif., and Seattle and Tacoma, Wash., on the West Coast; New York-New Jersey; Port of Virginia; Charleston, S.C.; Savannah, Ga,; and Port Everglades, Miami and Jacksonville, Fla., on the East Coast, and Houston on the Gulf Coast.
Editor’s Note: This story was reported by FN sister magazine Sourcing Journal. For more, visit Sourcingjournal.com.