“Imports have usually dropped off significantly by this time of year, but we’re still seeing numbers that could have set records in the past,” Jonathan Gold, NRF vice president for supply chain and customs policy, said. “Part of this is driven by consumer demand in the strong economy, but retailers also know that tariffs on the latest round of goods are set to more than double in just a few weeks.
If there are shipments that can be moved up, it makes sense to do that before the price goes up.”
Ben Hackett, founder of Hackett Associates, said, “President Trump’s trade war with China and the threat of even higher tariffs in 2019 have created a mini boom in imports and businesses have rushed to bring goods into the country ahead of the tariffs. We are clearly in a politically motivated trade environment.”
October was estimated at 1.89 million TEUs, up 5.5 percent year-over-year. November is forecast at 1.81 million TEUs, up 2.8 percent, and December at 1.79 million TEUs, up 3.8 percent. January is forecast at 1.81 million TEUs, up 2.8 percent year-over-year; February at 1.7 million TEUs, up 0.4 percent year-over-year, and March at 1.59 million TEUs, up 3.3 percent, according to the Global Port Tracker.
Imports set a monthly record of 1.9 million TEUs in July ahead of 10 percent tariffs on $200 billion in goods from China that took effect in September and are scheduled to rise to 25 percent in January. While not overall records, October, November and December’s numbers are each the highest on record for those months, according to the Global Port Tracker. Before this year, the highest monthly number on record was 1.83 million TEUs set in August 2017.
While cargo numbers do not correlate directly with sales, the imports mirror this year’s strong retail sales. NRF forecast last week that 2018 holiday season retail sales — excluding automobiles, restaurants and gasoline stations — will increase between 4.3 percent and 4.8 percent over last year. Retail sales for all of 2018 are forecast to be up at least 4.5 percent over 2017.
The Global Port Tracker said the first half of 2018 totaled 10.3 million TEUs, an increase of 5.1 percent over the first half of 2017. The total for 2018 is expected to reach 21.4 million TEUs, an increase of 4.4 percent over last year’s record 20.5 million TEUs.