MAJOR US ports have suffered steep declines in inbound container volume in November, adding to concerns of a deeper slowdown in 2023, reports the Wall Street Journal.
Los Angeles and Long Beach, handled 566,522 laden TEU in November, down 26 per cent year on year, the lowest level since March 2020, when the Covid crisis crippled global trade.
These ports also handled 98,000 fewer inbound boxes last month than in November 2019 and imports have been below pre-Covid levels since September.
Los Angeles port executive director Gene Seroka said importers brought goods in early this year to avoid a repeat of last year's product shortages. They also diverted goods to Gulf Coast and east coast ports due to fears of a work slowdown as west coast dockers negotiated a new labour contract.
Imports are falling as major US retailers such as Costco Wholesale Corp, Walmart and Target pull back on orders. Company executives have said consumers are reining in spending on big-ticket items such as furniture and electronics because of rising interest rates and inflation.
US retail sales fell sharply in November, the US Commerce Department as shoppers spend less on electronics and clothing and more on groceries, healthcare and eating out.
November saw the greatest October-to-November imports decline across US ports since 2016 at 12 per cent, according to Descartes Datamyne, a data analysis group owned by supply-chain software company Descartes Systems Group.
The 1.95 million imported containers last month was 19.4 per cent down year on year, the lowest monthly volume since June 2020.
The downturn is reaching east coast ports, which have seen relatively strong trade as companies shipped around California's congested gateways.
Imported containers into Georgia's Port of Savannah fell 7.6 per cent in November compared with a year ago and inbound volumes at the nearby Port of Charleston, South Carolina, last month plummeted 21.8 per cent yeaar on year.
US import volumes are tumbling from record highs. US ports were swamped with import containers during the second half of 2021 and the first half of 2022 as retailers tried to keep up with rampant consumer demand and to restock depleted inventories.
Those inventory levels are now balancing out, according to Ben Hackett, founder of Hackett Associates and the author of the Global Port Tracker issued by the National Retail Federation. Mr Hackett said he expects ports over the next six months will see cargo declines "to a level not seen for some time".
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