Imports at United States container ports hit a new record this spring, and congestion at two major ports is beginning to ease, according to the National Retail Federation (NRF).
Import volume for the first half of 2021 is expected to be a third higher than last year as the economy continues to recover from the pandemic, according to the monthly Global Port Tracker report from NRF and Hackett Associates.
“Despite the continuing pandemic, most consumers are in good financial health and aren’t hesitating to spend,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a press release. “More spending translates into more merchandise arriving at our ports as retailers continue to meet increasing demand. The cargo surge that began last fall doesn’t show any sign of stopping.”
U.S. ports handled 2.27 million TEU (one 20-foot container or its equivalent) in March, up 21.2 percent from February and a new record for the number of containers seen during a single month since NRF began tracking imports in 2002.
U.S. gross domestic product also grew at an annual rate of 6.4 percent in the first quarter and some economists are predicting 13 percent in the second quarter.
“Growth that fast is a clear indication that U.S. economic output has almost recovered to its level before the pandemic struck,” Hackett Associates Founder Ben Hackett said. “Retail sales numbers show consumers are spending a large portion of their stimulus checks as well as savings that accumulated while staying home rather than going out and income from new jobs. This is turning out to be a year of super growth that will act as the driver of the global economy.”
In addition to the increased volume, congestion at the Ports of Los Angeles and Long Beach – the nation’s largest ports – has begun to ease as carriers have shifted vessels to the Pacific Northwest or to the East Coast via the Panama Canal, according to Hacket.
However, some ships are still facing delays to unload as ports work at capacity, and COVID-19 infections continue to impact employees.
“Shortages of containers and other equipment and operational issues also continue to slow down the supply chain,” NRF said.
While April data is not yet available, NRF and Hackett project a surge of 34.5 percent from 2020 to 2.17 million TEU.
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