Container Exports Down, Imports Up

U.S. ocean container shipments tell a tale of two forces, with exports down 23.4 percent year-over-year and 8.7 percent from March according to Cass Information Systems.

At the same time, import container shipments jumped 10.2 percent in April from the pervious month. The sharp increases in March and April are mirrored in the same period in 2012 and 2013.

Despite the recent growth, container imports have still declined 1.3 percent during 2014 and are only 8.6 percent higher than April.

According to Cass, much of the large drop can be attributed to new Chinese economic policy: six months ago the Chinese government began an economic reform program that places an emphasis on reducing imports.

Since December, U.S. exports to China have been declining and in April were 45 percent lower than a year ago.

The world’s second largest economy, China is also undergoing a transition from a rapidly expanding economy to a more stable economy.

At a projected 7.3 percent for 2014, the growth rate of its economy, according to Cass, will be the slowest in 24 years. China’s new import policy is being felt in major export commodities such as cotton, grain and scrap materials.

Category: General Update