Import Cargo Expected to Rise as Retailers Prepare for Holiday Season
Import cargo at the nation’s ports is expected to rise this month as retailers begin to prepare for the holiday season, according to the National Retail Federation.
Cargo should rise 3.6% in August from the same time last year and increase 4.2% for the year, according to the monthly Global Port Tracker report released by NRF and Hackett Associates.
“Consumers might be out buying back-to-school supplies, but toys and sweaters are starting to show up on the docks,” Jonathan Gold, NRF vice president for supply chain and customs policy, said in a statement.
“There are still some lingering congestion issues, but retailers are working with their supply chain partners to make sure all of that merchandise flows smoothly to store shelves,” Gold said.
Retailers are paying less to transport merchandise as ocean carriers use more large-capacity ships. The increased capacity has driven down rates, but some lines are canceling voyages to counteract the trend, Ben Hackett founder of Hackett Associates, said in a statement.
“We are seeing complete chaos on the high seas in terms of the amount of capacity available and the level of spot freight rates,” Hackett said in a statement.
“One has to wonder why carriers cannot match supply to demand. The end result will likely be a highly volatile situation of freight rates moving up and down,” Hackett said.
The report covers the ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Hampton Roads, Charleston, Savannah, Port Everglades and Miami on the East Coast, and Houston on the Gulf Coast.
