U.S. container import volume grew by 0.4% in December 2023, reaching 2,107,012 TEUs. Year-over-year, the volume increased by 9.2%, and it’s 10.6% higher than December 2019. However, compared to 2022, there’s an 11.7% decrease, reports Descartes.
Regional Variances
- West Coast ports saw decreases in import volume, while East and Gulf Coast ports experienced increases.
- Notably, the Port of Houston had the highest volume increase, while Long Beach and Los Angeles had significant decreases.
Country-Specific Changes
- Chinese imports increased slightly by 0.6% in December 2023 but remained 21.5% lower than the peak in August 2022.
- China’s share of total U.S. container imports was 37.4% in December, down from 41.5% in February 2022.
Market Share Shifts
- Top East and Gulf Coast ports collectively increased their volume share to 44.9%, while top West Coast ports decreased to 39.7%.
- The top 10 ports, however, saw a slight decrease in share, down to 84.5%.
Port Transit and Panama Drought
- Overall port transit delays increased in December 2023, particularly for top West Coast ports.
- The Panama drought’s impact on U.S. container imports was mixed, with Gulf Coast volumes recovering, but transit delays increased.
Potential Future Disruptions
Middle East Conflict
- Attacks on shipping in the Red Sea escalated in December, impacting the Suez Canal’s global container shipping volume.
- No immediate impact in December, but potential effects may be seen in January 2024 numbers.
Labor Disruption Warning
- Potential labor disruption at South Atlantic and Gulf Coast ports in 2024 due to the expiration of the ILA-USMX agreement in September.
2024 Supply Chain Risk Factors
- Descartes highlights key metrics to watch, including monthly TEU volumes, port transit times, the continuing impact of the pandemic, the economy, Panama Canal-based trade flow, the Middle East conflict, and ILA/USMX contract negotiations.
Recommendations
Short-term
- Monitor COVID variant spread, ocean shipments, Panama Canal situation, Middle East conflict, inflation, and geopolitical conflicts.
Near-term
- Companies importing from Asia should reconsider trade moved away from West Coast ports.
- Evaluate the impact of extended rerouting for cargo moving through the Suez Canal.
Long-term
- Evaluate supplier and factory location density to mitigate reliance on over-taxed trade lanes and regions prone to conflict.
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Source: Descartes
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