US Ports: Imports Set a Second Record High as Retailers Prepare for Busy Holiday Season
Imports 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, according to the monthly Global Port Tracker report released today 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 1.8 million 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 1.78 million TEU set just one month earlier in July. The record before that had been 1.73 million TEU in March 2015. August was up 1.4 percent over July and 5.6 percent over August 2016. A TEU is one 20-foot-long cargo container or its equivalent.
September was estimated at 1.65 million TEU, up 3.7 percent from last year, and October is forecast at 1.72 million TEU, up 2.8 percent. While not a record, the October number would be one of only six times in the report’s history that the monthly total has hit 1.7 million TEU or higher. November is forecast at 1.62 million TEU, down 1.7 percent from last year, and December is forecast at 1.59 million TEU, up 1.3 percent.
Growth has slowed from the first half of the year but 2017 is expected to total 19.8 million TEU, topping last year’s previous record of 18.8 million TEU by 5.4 percent. That compares with 2016’s 3.1 percent increase over 2015. The first half of 2017 totaled 9.7 million TEU, up 7.5 percent from the same period in 2016.
January 2018 is forecast at 1.64 million TEU, down 2 percent from January 2017, and February is forecast at 1.58 million TEU, up 10 percent 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 percent over 2016 and that this year’s holiday sales will grow between 3.6 and 4 percent. 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 buildup 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.”
Global Port Tracker, which is produced for NRF by the consulting firm Hackett Associates, covers the U.S. ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Hampton Roads, Charleston, Savannah, Port Everglades and Miami on the East Coast, and Houston on the Gulf Coast. The report is free to NRF retail members, and subscription information is available at www.nrf.com/PortTracker or by calling (202) 783-7971. Subscription information for non-members can be found at www.globalporttracker.com.
NRF is the world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private-sector employer, supporting one in four U.S. jobs – 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation’s economy.
Source: Hackett Associates