Who Would Have Thought That Retail Imports Would Set a Record in 2020?
The National Retail Federation’s (NRF) Vice President for Supply Chain and Customs Policy Jonathan Gold said nobody would have thought last spring that 2020 would be a record year for retail imports, what with the coronavirus creating such havoc on the economy. But despite the pandemic, retail imports appear to be headed toward a record for the year and remain at high levels as 2021 begins, according to the NRF’s Global Port Tracker report conducted by research and consulting firm Hackett Associates.
“It was clearly an unpredictable year, [but] consumers and retailers once again proved their resilience in the face of unprecedented challenges,” Gold said. “Thanks in part to government stimulus, retail sales saw strong growth during 2020 even with the pandemic, and import numbers show retailers expect the economic recovery will continue during 2021.”
But there are some issues. With high import volumes over the past few months, ships carrying goods from Asia have backed up at West Coast ports in particular, and there have been shortages of shipping capacity and equipment including chassis and empty containers, NRF said.
“With COVID-19 accelerating across the country, the pandemic is causing logistics problems beyond the congestion at the ports,” Hackett Associates Founder Ben Hackett said. “With large numbers of people infected by the virus and unable to report for work, the supply chain is potentially facing challenges to find enough workers for goods distribution.”
U.S. ports covered by Global Port Tracker handled 2.11 million Twenty-Foot Equivalent Units (TEU) in November, the latest month for which final numbers are available. That was up 24.5% year over year but down 4.9% from October’s 2.21 million TEU, which set the record for the largest number of containers handled during a single month since NRF began tracking imports in 2002. A TEU is one 20-foot container or its equivalent.
December was projected at 2.02 million TEU, down 17.3% year over year but still one of only six times in nearly 20 years that the monthly total has hit the 2 million TEU mark. If the December number holds up once actual data is available, 2020 will have ended with a total of 21.9 million TEU, up 1.5% from last year and breaking the previous annual record of 21.8 million TEU set in 2018.
Imports during the last half of 2020 set a string of records, including an all-time high of 8.3 million TEU for the July-October peak season when retailers rush to bring in merchandise for the winter holidays each year.
January is forecast at 1.96 million TEU, which would be up 7.7% from a year ago and the busiest January on record.