It is reported that the number of imported containers handled by U.S. ports in June reached a record high, making it the country's highest-ever import volume in June. At the same time, there is also a growing body of data and analysis that shows that U.S. demand for Asian exports is slowing.
According to the McCown report, June's top 10 U.S. port imports rose 5.9 percent year-over-year to 2.165 million TEU, outpacing April (5.1 percent) and May (3 percent) year-over-year increases.
freight traffic continues to shift eastward. Imports at major East Coast and Gulf Coast ports rose 9.7 percent year-over-year to 1.086 million TEU, driven by double-digit growth at the Port of New York-New Jersey, Port of Houston, and Port of Savannah, while imports at West Coast ports rose 2.3 percent year-over-year to 1.078 million TEU.
The report's author, John McCown, said the June East and West Coast freight shifting trend continued to accelerate, with the result that ships currently waiting for berths in New York and Houston ports are as many as those in Los Angeles and Long Beach ports.
There were 140 container ships waiting offshore in North American ports as of Tuesday morning, according to MarineTraffic's position data and the latest ship queue list. Of those, 37 percent were in West Coast ports, 63 percent were in East Coast and Gulf of Mexico ports, and there were long lines near the Port of Savannah, the Port of New York-New Jersey and the Port of Houston.
McCown said port congestion has evolved from primarily affecting the West Coast to all coastal areas. He also pointed out that the congestion in US ports is mainly due to the inability to transport containers from the terminal, rather than from the ship.
U.S. port imports continue to grow at the same time, more and more evidence data and analysis show that the United States to Asia export demand for goods slowed.
The FreightWaves Snoar's bookings index to U.S. ports (based on vessel departure dates) fell sharply in May and remained subdued in June and July. As of Tuesday, the index was down 32 percent from May 1 and 33 percent from a year earlier.
S & P Global Commodities reported on Monday that there was "ample room" for ships leaving Asia for North America ". A shipping company source said that some people are now predicting a mild peak season.
Ben Nolan, shipping analyst at Stifel, said: "The demand for container traffic still far exceeds the capacity of the terminal infrastructure. The question is, can traffic keep growing as consumers switch from goods to services? We don't think so." Given that there are so many bottlenecks throughout the supply chain, Nolan expects that the correction in freight rates could be gradual, and shipping lines should reap huge rewards along the way.
Trans-Pacific shipping consultant Jon Monroe said the drop in freight rates on trans-Pacific routes was due to U.S. shippers delaying or canceling overseas orders. "Many retailers suspended orders or slowed their purchases in June and July and are expected to receive their orders again in August. The warehouses are full and beneficiary shippers have already overspent and overordered in the first quarter of this year."
The U.S. Census Bureau reported on Friday that the adjusted retailer inventory-to-sales ratio reached 1.2 in May, the highest level since February 2021. Earlier, large retailers such as Wal-Mart and Target said they had excess inventory, and Target also announced that it would sell goods at reduced prices, eliminate excess inventory and cancel purchase orders.
Shippers of low-value furniture and household goods saw the biggest drop in orders, a Boston freight forwarder said. But he said high-end home goods retailers were still ordering, as were fashion and clothing shippers. "They 've slowed down their purchases and I think it's going to be temporary. There's a lot of demand, it's just not as frothy." "Orders could easily pick up again in August or September," he said.
In addition, growing inflationary pressures have reduced consumers' disposable income and the amount of money available for discretionary purchases. U.S. consumer spending on goods fell 0.7 percent in May, with spending on durable goods down 3.2 percent and spending on non-durable goods and trade in services rising.
source: search air network