Imports Keep Flowing In Spite of Challenges
Despite disruptions to ports and shipping routes in the U.S. and Middle East, the nation’s cargo traffic has felt little in the way of interruptions, according to supply chain experts at the National Retail Federation and Hackett Associates.
The collapse of the Francis Scott Key Bridge in Baltimore in late March along with the continued threat of attacks on cargo ships in the Red Sea have led global shippers to find solutions to these challenges. But these issues have had little impact on the overall flow of goods into the U.S.
“U.S. imports are continuing to increase despite another disruption impacting U.S. ports,” said Jonathan Gold, vice president of Supply Chain and Customs Policy with the NRF. “As retailers have adjusted to limits on the use of the Panama Canal and the Red Sea, we now face the shutdown of the Port of Baltimore to vessel traffic. While it is not expected to have a national impact, the tragic collapse (in Baltimore) shows the ongoing need for flexibility and resiliency in every company’s supply chain.”
Ben Hackett, founder of Hackett Associates, said the Baltimore bridge accident will likely shift container imports and exports to New York/New Jersey, Virginia and other surrounding ports until a shipping channel is cleared.
As of April 9, the Port of Baltimore has been closed to vessel traffic since a container ship struck the Key Bridge on March 26, collapsing the span and blocking the only shipping channel into the harbor. Baltimore is not included in Global Port Tracker’s national totals because its data is reported later than other ports, but the shutdown is having a regional impact and cargo that would normally go there is being diverted to other East Coast ports. The port handled 48,000 Twenty-Foot Equivalent Units – one 20-foot container or its equivalent – in January.
Overall, U.S. ports continue to show year-over-year growth. Traffic at major U.S. ports in February were up 26.4% year-over-year. March cargo traffic is projected to 11% year-over-year. April is forecast at 1.93 million TEU, up 8.4% year-over-year, and May at 2.04 million, up 5.5% and the highest level since 2.06 million last October. June is forecast at 2 million TEU, up 8.9%; July at 2.04 million TEU, up 6.6%, and August at 2.09 million TEU, up 6.9%.
The first half of 2024 is expected to total 11.7 million TEU, up 11% from the same period last year. Imports during 2023 totaled 22.3 million TEU, down 12.8% from 2022.