United States import container volumes are expected to continue their upward trend until at least the first half of 2024.
This is according to data released by Descartes Systems Group, a software provider for logistics businesses, which showed that container import volumes had the largest month-on-month growth in seven years in January.
DSG’s February Global Shipping report highlighted a 7.9% increase in overall container import volume in the U.S. in January 2024 compared to December. The report reflected an almost 15% increase in imports from China with most of the volume shipped to the ports of Los Angeles and Long Beach.
The strong growth brought container volumes back up to levels last seen in 2023 and even slightly above January 2019 levels, before the pandemic. Import volumes rose by almost 10% year-on-year to 2.27 million TEU in January, which was 9.6% higher than volumes recorded in January 2019.
Descartes executive vice president industry and services, Chris Jones said imports were driven by strong volumes from China. However, he warned that weather and geopolitics were starting to affect delivery times.
“The combined effect of the Panama drought and the conflict in the Middle East is beginning to impact transit times, particularly at the top East and Gulf coast ports,” Jones said.
Descartes warned that global supply chain performance could be impacted throughout 2024 by the limits of transits through the Panama Canal, disruptions to routes through the Red Sea and Suez Canal, and labour negotiations at U.S. Atlantic and Gulf Coast ports.
The National Retail Federation has also forecast a strong start to 2024 with a predicted more than 5% rise in import container volumes for the first half of 2024 compared to the same period last year.
NRF vice president for supply chain and customs policy, Jonathan Gold said US retailers are working to mitigate the impact of delays and increased cost.
