US ports increase inbound cargo volume
Global Port Tracker has published a report on the state of the US shipping sector. According to the report, inbound cargo volumes continue to grow. However, supply chain challenges could threaten market development.
The key event for the sector in 2024 was the conflict in the Red Sea. This forced global carriers to change their operational tactics quickly to avoid losing customers. As a result, companies had to take longer flights to prevent the troubled region. This led to other difficulties, including a shortage of container capacity.
According to Ben Hackett of Hackett Associates, other factors also pressure the sector. Among them:
- Rising tariffs on imported goods. The US government supports this trend, which has a negative impact on the functioning of the market.
- Contractual problems with port operators on the East Coast and the Gulf of Mexico. Uncertainty is forcing operators to move cargo to other West Coast ports.
These difficulties are driving up shipping prices, putting additional pressure on consumers.
Hackett notes that the risks are not only increasing for the US shipping market. The global sector is facing similar challenges that are affecting operations’ stability. Negative pressures include:
- high inflation rates
- geopolitical conflicts;
- high freight rates;
- labour shortages in ports;
- low throughput capacity on key routes;
- congestion on popular routes.
However, despite the serious challenges, the sector has seen strong growth in cargo volumes. In 2024, it reached its maximum for the last two years. Carriers owe this result mainly to retailers. The latter are optimistic about increased sales and are stockpiling goods. Retailers are seriously preparing for the seasonal and holiday rush to meet consumer demand.
The situation in US ports
The Global Port Tracker report states that US ports handled around 2 million twenty-foot equivalent units (TEUs) in May. This was up 3% on the previous month and 7.5% on May 2023.
In June, cargo volumes rose to 2.1 million TEUs. This was 14.5% higher than in the same period last year. In July, the terminals handled 2.21 million TEUs. Analysts are forecasting inbound cargo volumes of around 2.05 million TEUs for October. In November, volumes are likely to fall to 1.96 million TEUs.
