Ocean Contain Imports Plunge; Port Disruptions may Impact Holiday Sales
Imports of ocean containers plunged 24.3 percent in October, after hitting a record high in September according to Cass Information Systems.
Exports, on the other hand, increased 7.1 percent after a seasonal September drop.
Severe work slowdowns, equipment capacity issues, and stoppages have contributed to extended delays at West coast ports, particularly LA/LongBeach and Oakland. These disruptions in the supply chain are worrying retailers, Cass noted, “who have been planning for a much better holiday season than we have seen in the past two years. There are major concerns that products will not reach their shelves in time for the traditional Black Friday sales that kick off the holiday shopping season.”
A 36.1 percent drop in imports from China was responsible for much of the decrease, however imports also fell off from six of the top ten countries included in the index. Ocean container export activity showed its biggest gain this year, rising 7.1 percent in October.
This is only the fourth time exports have risen in 2014, and current volumes are still 12.8 percent lower than the end of last year. Compared to the same month in 2013, October’s container exports are down 21.7 percent, largely due to weak global demand and a strong dollar. On the positive side, exports were up to nine of the U.S.’s top ten trading partners in October.
China’s GDP is strengthening and the European Union is expanding, so demand for goods should continue to rise, albeit slowly.
Category: Featured, General Update, Management
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
