Containerized imports at all the
major retail container ports in the U.S. are witnessing a surge in import volumes. The increase in
container imports for the month of October is expected to be around 10 percent compared to last
year. Large retailers in the country are in the process of closing their annual shipping cycle for
holiday sales. The seasonal jump of nearly 10 percent has been reported in the Global Port Tracker
report for this month, which is issued by the National Retail Federation (NRF) and Hackett
Associates.
Some Bright News
NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said: "NRF's annual forecast
says retailers should see solid growth during the holiday season this year and these cargo numbers
back it up. Increased imports show that retailers have gauged the market and expect increased
sales."
By the Numbers
The number
of 20 ft. containers handled by the U.S. ports in August stood at 1.42 million. This
represented an increase of 3.3 percent over the same month in 2011, and 6.7 percent over July 2012.
The growth of import volumes was 8 percent over last year in the month of September, while the
forecast for October is 9.9 percent over the same month last year. Just think where America would be
at if it was not in a recession.
America is not Collapsing Outright
The three busiest months of the year for container imports at U.S. ports are in August, September,
and October. These are the months when the nation's retailers import merchandise to meet the
seasonal demand for the Christmas season. However, it is important to note that growth in import
volumes does not necessarily mean an equivalent growth in year on year retail sales. According to
the estimates of NRF, the sales volume during the holiday season is expected to stand at $586
billion this year, which is about 4.1 percent higher than last year. That is remarkable considering
how many people are either out of work or are underemployed.
Keep on Trucking
The drop in monthly container import volumes will be seen from the month of November, but it is
still expected to stay above the volumes during the same month last year. The forecast for November
and December is 1.32 million and 1.28 million, respectively.
Higher Inventories
Ben Hackett, founder of Hackett Associates, said: "Inventories are up, which could be due to lack of
demand but it could also be due to pre-stocking in anticipation of the dock strike that didn't come.
Either way, it is within a narrow range of movement and it does not suggest that we are sliding into
another recession." Ben may not be looking at the big picture or all the numbers. Either way,
America should be on fire right now but it is not because of excessive regulations and burdensome
taxes. There are many companies who are sitting on the sidelines until America gets on the right
path.