LM    Topics     Logistics    3PL

U.S.-bound imports and shipments remain solid in April, reports Panjiva


The ongoing elevated state of United States-bound imports remained firmly intact in April, according to data issued this week by global trade intelligence firm Panjiva.  

Total April U.S.-bound import shipments—at 1,188,688—headed up 5.3% annually and are up 25.3% on a year-to-date basis. And containerized freight imports—at 2,819,591 TEU (Twenty-Foot Equivalent Units) were up 25.5% annually and 27.6% year-to-date, following March’s 3,017,140 TEU, which marked the first time freight imports topped the 3 million TEU mark in a single month. Panjiva observed that the difference in April shipment and TEU growth was attributed to a surge of LCL shipments a year ago as PPE shipments got underway.

Even though containerized imports rose by an impressive 25.5% annually, it was well below March’s 51% annual gain, while posting a 19.3% annual gain compared to April 2019.  The firm explained that the 2019 comparison represents that a fundamental improvement in activity, rather than early-pandemic comparisons, are tied to the increase and not a timing effect.

What’s more, Panjiva noted that on a daily basis, the number of TEU being handled fell 3.7%, from March to April, at 94,000 TEU per day, a 3.5% increase compared to the last peak season through November 30, 2020, and also serving as a sign that pressure on ports may be waning after a March peak.

On the product side, for April, Panjiva reported the following import numbers:

  • consumer discretionary products were up 47.9% annually, following March’s 63.3% annual gain;
  • healthcare and consumer staples increased 44.4% and 24.1%, respectively  
  • consumer electronics increased 16.8% and were up 4.5% compared to April 2019;
  • furniture and household appliances were up 63.1% and 58.7%, respectively while seeing respective sequential declines of 4.2% and 8.4%, which Panjiva said is an indication that supply chain pressure may be alleviating;
  • industrial shipments were up 2.4%, well below March’s 50.3% annual gain; and
  • chemical materials were up 2.9% and imports of basic metals were up 22.3%

In terms of origin locations, Panjiva said that imports from China, including Hong Kong, were up 42.6% annually, and up 31% compared to April 2019, with imports out of Europe up 19.6% annually, a record high, and also up 17.8% compared to 2019.

Panjiva said that the disruptions from the Suez Canal in March may have contributed to April’s numbers, while rate increases recently implemented by major container lines serves as an indication that Transatlantic growth is likely to remain intact.

In an interview, Panjiva Research Director Chris Rogers explained that on a top level, even with April volumes down compared to March, import numbers remain close to historical levels.  

“Despite lower volumes, retail sales numbers remain really strong, and demand is still there,” said Rogers. “That is something many retailers have been expecting and is why we are still seeing full vessels coming over [to the U.S.]. We are seeing a bit of a shift in the consumer discretion rate while there has still been an elevated level of demand for home goods like furniture and household appliances and also a pickup in leisure goods. As people gear up for summer, in tandem with the reopening of the U.S., that will continue as people want stuff for vacations and not just staying at home. There is a change in mix there.”

On the industrial side, Rogers said there are some elements related to the slowdown in the rate of growth, for things like electrical components and machinery, among others, even though the growth rate remains very high compared to historical levels, albeit slower compared to previous months.

“It may very well be that we are seeing the crest of the wave in some regards,” he said. “Clearly, we need to be careful with year-over-year comparisons, due to the timing of the pandemic more than a year ago. Looking ahead, April, May, and June are viewed as off-peak, with April certainly not off-peak. May remains too early to tell. Port congestion is reduced but still there to a certain extent, so that needs to be worked through.”

What’s more, Rogers pointed to how container shipping lines are still confidently keeping rates high, with Hapag-Lloyd recently announcing a general rate increase (GRI), which suggests they don’t see any kind of material slowdown before the end of the year. And ZIM said it expects growth for the full year to be quicker than it was in the first quarter, making it feel like more of the same.”

Looking ahead, Rogers said risk factors may come into play later in the year, with the full reopening of things like leisure activities, with spending later in the year more geared towards services, which, at some point, could lead to some sort of slowdown.

“That will need to be seen, if it happens, as the holidays are still six months out,” he said. “Inflation is very much on the agenda, which is leading some companies to say costs are getting too high and they will need to pass those costs on to consumers or start trimming some activity. Companies are going to have to make decisions about what to do about that.”


Article Topics

News
Logistics
3PL
E-commerce
Global Trade
Transportation
Ocean Freight
3PL
E-commerce
Global Trade
Logistics
Ocean Freight
Ocean Shipping
Panjiva
Transportation
   All topics

3PL News & Resources

GXO heralds debut of GXO Connect in the UK
Q&A: Michael Farlekas, CEO, e2open
MHI issues annual State of the Industry report at ProMat 2023
6 River Systems rolls out mobile fulfillment app to extend picking options outside of its AMRs
February intermodal volumes see annual declines, reports IANA
Q&A: Adam Satterfield, CFO, Old Dominion Freight Line
DSV announces acquisitions of S&M Moving Systems West and Global Diversity Logistics
More 3PL

Latest in Logistics

GXO heralds debut of GXO Connect in the UK
Yellow, Teamsters union butting heads a year before contract deadline
Industry stakeholders call on White House to aid in West Coast port labor talks
How to make sure your warehouse automation gives a high ROI
Gain Greater Visibility With ERP & TMS Integration
Q&A: Michael Farlekas, CEO, e2open
Three layers of forklift safety: Promoting operating best practices
More Logistics

About the Author

Jeff Berman's avatar
Jeff Berman
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review and is a contributor to Robotics 24/7. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis.
Follow Logistics Management on FaceBook

Subscribe to Logistics Management Magazine

Subscribe today!
Not a subscriber? Sign up today!
Subscribe today. It's FREE.
Find out what the world's most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today.

March 2023 Logistics Management

March 14, 2023 · We speak with a number of logistics experts to capture their views on the overall impact that e-commerce is having on moving the nation’s freight. One thing is for certain: The current level and speed of churn has irrevocably altered the pattern so many had become accustomed to managing.

Latest Resources

How to make sure your warehouse automation gives a high ROI
Unlock Your Warehouse's True Potential with Automation - Learn the Essentials of Automating Your Warehouse for Maximum Return on Investment.
Gain Greater Visibility With ERP & TMS Integration
Three layers of forklift safety: Promoting operating best practices
More resources
 


Latest Resources

Warehouse/DC Automation & Technology: It’s “go time” for investment
Warehouse/DC Automation & Technology: It’s “go time” for investment
In our latest Special Digital Issue, Logistics Management has curated several feature stories that neatly encapsulate the rise of automated systems and...
Why accurate, real-time location data is a must for efficient operations
Why accurate, real-time location data is a must for efficient operations
Find out how next-generation workforce management apps use accurate, real-time location data to power successful operations in this webinar with Radar CEO...

Should you lease or buy your lift truck fleet?
Should you lease or buy your lift truck fleet?
Leasing critical equipment like lift trucks can offer flexibility, but some lease terms can be complex and costly if you’re not...
2023 State of the Third-Party Logistics (3PL) Industry Report
2023 State of the Third-Party Logistics (3PL) Industry Report
In this year’s Third-Party Logistics State of the Industry Report, you’ll learn about our top trends for the year and...
2023 Rate Outlook Webcast: Will shippers catch a break?
2023 Rate Outlook Webcast: Will shippers catch a break?
In this annual webcast, group editorial director Michael Levans hosts our panel of logistics and freight transportation analysts who share their insights...