U.S. container imports have climbed in 2022 as consumer demand increases, defying soaring inflation.
Total container imports reached 2.4 million 20-foot equivalents, or TEU, in June, up from 2.2 million in June 2021, according to Panjiva. A TEU is a 20-foot-long cargo container or its equivalent.
The outlook for import volume for the rest of the year looks uncertain as inflation, fuel costs and consumer spending influence import volumes.
"The two big factors are how well consumer spending holds up and how retailers manage their inventories," said Daniel Hackett, partner at international trade consulting firm Hackett Associates.
Higher imports
Maritime imports to the U.S. totaled $132.78 billion in May, the highest month since at least April 2019, according to Panjiva.
Total imports in 2022 were $601.25 billion as of July 22, which was the highest amount during the same time period since at least 2016.
Imports were high as major U.S. ports worked to reduce congestion and as retailers stocked up before the West Coast labor contract expired for dockworkers, according to the National Retail Federation. Although the contract between the International Longshore and Warehouse Union and the Pacific Maritime Association expired July 1, cargo operations are continuing.
"Cargo volume is expected to remain high as we head into the peak shipping season, and it is essential that all ports continue to operate with minimal disruption," said Jonathan Gold, vice president for supply chain and customs policy at the National Retail Federation.
Congested U.S. ports had a chance to clear up during the spring amid a slowdown in cargo from Chinese factories facing COVID-19 closures, according to the federation.
Looking ahead
Overall, imports are expected to increase only slightly in 2022 compared with 2021, with growth in the 2%-3% range, Hackett said.
Price increases, especially at the gas pump, will likely result in changes to discretionary spending over the coming months, Hackett said. A slowdown in the housing market should also decrease purchases of new appliances.
"There will be a change in the mix of cargo that retailers bring in, but we are also projecting that the total volume will decrease in the second half of this year and moving into 2023," Hackett said.
Panjiva is the supply chain research unit of S&P Global Market Intelligence, a division of S&P Global Inc.