Geopolitical tensions around the Suez Canal and dropping water levels at the Panama Canal might have suggested a decline in U.S. imports in January. However, new data from Descartes reveals that imports were surprisingly robust.
According to Descartes, the U.S. imported 2,273,125 twenty-foot equivalent units of containerized goods in January, marking a 7.9% increase from December and a 9.9% increase from the previous year. This growth is the largest month-over-month increase for January since 2017.
January is usually not a peak month for containerized imports, but there is typically a rush leading up to China’s Lunar New Year, during which manufacturing plants and port facilities shut down. The recent data indicates a 14.9% month-over-month rise in Chinese imports, reflecting the usual seasonal trends unlike the past year’s poor performance.
While West Coast ports were expected to benefit from the surge in Chinese imports, East and Gulf Coast ports were anticipated to struggle due to issues at the Panama Canal. Contrary to expectations, data shows mixed performance on the East Coast, with notable increases at ports like New York and New Jersey, Norfolk, and Baltimore. Despite this, other ports along the East and Gulf coasts saw sluggish activity in January.
Southern California ports experienced significant growth in Chinese imports, with Long Beach and the Port of Los Angeles seeing notable increases. As a result, major West Coast ports gained market share compared to East and Gulf Coast ports.
Looking ahead, Descartes highlighted potential risks for growth in 2024, including labor agreements, the health of the U.S. economy, rising port transit times, and disruptions in the supply chain due to new COVID variants. These factors could impact import levels in the coming year.
