U.S. Container Imports Continue to Rise amid Supply Chain Challenges

U.S. ports handled 2.08 million TEU in May, a 3% increase from April and a 7.5% year-over-year rise, the highest since August 2022.

“Lulls between supply chain challenges seldom last long, and importers are currently looking at issues including high shipping rates, unresolved port labor negotiations, and continuing capacity and congestion issues from ongoing disruptions in the Red Sea,” said Jonathan Gold, NRF Vice President for Supply Chain and Customs Policy. “Despite all of that, we’re experiencing the strongest surge in volume we’ve seen in two years, and that’s a good sign for what retailers expect in sales. Consumers can rest assured that retailers will be well-stocked and ready to meet demand as we head into the back-to-school and holiday seasons.”

Ben Hackett of Hackett Associates highlighted that impacts from attacks in the Red Sea have exceeded expectations due to insufficient capacity for longer voyages. Also, political support for broader tariffs and concerns over East Coast/Gulf Coast dockworker contracts are shifting cargo to West Coast ports, driving up shipping costs and affecting consumers.

“The risks to global trade growth continue to increase,” Hackett said. “We are in a volatile situation with multiple pressures on the movement of goods, underpinned by continued inflationary pressures.”

Global Port Tracker projections point to significant year-over-year increases in TEU volume for June through November, with the highest growth in July (15.5%) and a slight decline in October (-0.5%).

The first half of 2024 is expected to total 12.04 million TEU, up 14.4% from the same period last year. Imports during 2023 totaled 22.3 million TEU, down 12.8% from 2022.