August edition of Descartes’ Global Shipping Report shows signs of supply chain normalization, states a Logistic Management news source.
July Global Shipping Report
The new edition of the July Global Shipping Report, which was recently issued by Waterloo, Ontario-based Descartes, a provider of logistics based on-demand, software-as-a-service offerings presented mixed readings, to a certain extent.
The is the 24th edition of the Global Shipping Report, going back to its debut in August 2021.
From June to July, Descartes reported that U.S.-bound container import volumes saw a 5.1% increase, to 2,187,810 TEU (Twenty-Foot Equivalent Units), which it said is consistent with import gains seen in non-pandemic years, for Peak Season. On an annual basis, import volume was off 13.6% annually and was off 0.5% compared to July 2019, prior to the pandemic. This sequential gain topped readings for the same period in 2021 and 2022, which came in at 2.0% and 2.1%, respectively.
Port transit times
The report observed that while volume was up, port transit times hovered near their lowest-recorded levels going back to when Descartes started tracking that data.
“The U.S. West Coast labor situation continues to progress slowly in the right direction, while the Canadian West Coast situation had an eventful month that ended positively,” stated the report. “The August update of the logistics metrics Descartes is tracking shows continued consistency with 2019 results and signs that key challenges to global supply chain performance in 2023 have stabilized.”
For the top 10 U.S. ports, Descartes found that July U.S. container volume increased by 88,987 TEU, or 5.0%, with nine posting gains, led by the Port of Savannah and the Port of New York/New Jersey up 47,900 TEU and 43,169 TEU, respectively, while the Port of Los Angeles was the lone top 10 port with a decrease, down 68,874 TEU, or 15.9%.
Looking at ports by region, Descartes observed that the volume share for the top West Coast ports was down, driven by the significant July volume decrease at the Port of Los Angeles. And it said that from June to July, total import container volume for the top West Coast ports was down 4.1% to 38.3%, with top East and Gulf Coast ports’ share up 4.1% to 46.4%.
China accounted for 37.5% of total June U.S. container imports
U.S.-bound imports out of China rose 4.7%, from June to July, to 819,837 TEU, following a mere 0.3% May to June gain, while remaining well below the 18.3% gain seen in August 2022. Descartes said that China accounted for 37.5% of total June U.S. container imports, marking a 0.4% gain, remaining down from a total high in February 2022, at 41.5%.
Following China, Germany and South Korea were next in terms of percentage gains, from June to July, with Germany up 12.8%, to 7,763 TEU, and South Korea up 12.5%, to 11,418 TEU.
July port transit delays were in line with June, according to the report, with Descartes noting that it represents one of the lowest months for the segment since it began tracking this data.
The Port of Tacoma saw the largest June to July increase, at 2.2 days, with the Port of Tacoma showing the largest decrease, at 2.2 days.
“The increase in July U.S. import container volume is consistent with the peak season patterns we would see pre-pandemic,” wrote Chris Jones, EVP Industry Descartes, in the report. “Despite the increase in import container volume to almost 2.2 million TEU, port transit times remained close to last month’s low levels which is good news for importers.”
Jones added that the U.S. West Coast labor situation continues to progress slowly in the right direction, while the Canadian West Coast situation had an eventful month that ended positively.
“The August update of the logistics metrics Descartes is tracking shows continued consistency with 2019 results and signs that key challenges to global supply chain performance in 2023 have stabilized,” noted Jones.
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Source: Logistics management