US’ retail imports to return to normal in 2022: NRF

After a year of unprecedented increases, imports at the US’ major retail container ports are expected to return to normal growth rates in 2022 but volumes will remain high, according to the monthly Global Port Tracker report by the National Retail Federation and Hackett Associates. Imports saw year-over-year growth as high as 65 per cent in some months during 2021.
High imports were the result of increased consumer demand, retailers’ efforts to stock up to mitigate supply chain challenges, and comparisons against periods early in 2020 when many stores were closed because of the pandemic. But increases returned to single digits by last fall and should remain there this year. Nonetheless, volumes of about 2.2 million Twenty-Foot Equivalent Units (TEUs) or more expected during most months in the first half of 2022 will be near-records.

“Even with the holiday season behind us, supply chain challenges continue,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “The huge increases in imports we’ve seen have levelled out, but volume is still at high levels. We hope the system will find a way to catch up, but there is much that remains to be done to clear out port backlogs and increase capacity throughout the supply chain. Amid all of this, the omicron variant is a wild card that could not only impact the supply chain workforce but once again drive more imports if consumers stay home and spend their money on retail goods rather than going out.”

“Economic indicators are giving us a paradoxical view of the direction of the US and global economies,” Hackett Associates Founder Ben Hackett said. “The atmosphere of uncertainty is likely to have an impact on demand going forward. We are already seeing short-term growth rates declining, and we believe trade growth is returning to normal levels reflective of economic factors. We do not expect that double-digit expansion of import volumes will continue in 2022.”

US ports covered by Global Port Tracker handled 2.11 million TEUs in November, the latest month for which final numbers are available. That was down 4.5 per cent from October but up 0.5 per cent year-over-year. Ports have not reported December numbers yet, but Global Port Tracker projected the month at 2.18 million TEUs, up 3.7 per cent year-over-year. A TEU is one 20-foot container or its equivalent.

Those numbers would bring 2021 to a total of 25.9 million TEU, a 17.9 per cent increase over 2020’s record high of 22 million TEU that was set despite the pandemic, as per the report.

January is forecast at 2.23 million TEUs, up 8.6 per cent year-over-year; February at 1.95 million TEU, up 4.2 per cent year-over-year; March at 2.19 million, down 3.3 per cent; April at 2.2 million TEU, up 2.5 per cent, and May at 2.32 million TEU, down 0.5 per cent.