China volumes, tariff anxiety helps surging US container imports challenge '22 record

Yahoo

2 days ago

Containerized imports through U.S. ports surged to more than 2.6 million twenty foot equivalent units in July, as peak-season demand and tariff pressures left volumes just short of the monthly record.
China import volumes also staged a recovery through the busiest American ocean container gateways.
Volume totaled 2,621,910 TEUs, up 18.2% from June and 2.6% higher than July 2024, according to data compiled by Descartes Datamyne, and just 555 TEUs short of the all-time record set in May 2022.
Descartes cited strong seasonal demand and suspected frontloading of shipments as importers maneuvered amid trade policy shifts.
The report termed as 'mild' port transit delays accompanying the sharp growth in import volumes from the previous month, 'indicating that infrastructure is continuing to perform under elevated volumes.'
China imports rocketed to 923,075 TEUs, up 44.4% m/m and the highest level since January. China's share of U.S. imports was 35.2% in July, from 28.8% in June, but below the 41.5% peak seen in February 2022.
Imports were clearly pressured by the Trump administration's end to the de minimis exemption allowing imports under $800 to enter duty-free, as well as ongoing uncertainty over tariffs. Flat-rate fees of $80–$200 per item are expected to be enacted for less expensive imports. The report also credited the recovery to seasonal demand and pull-forward of shipments by importers ahead of the mid-October expiration of the 30% temporary tariff rate on Chinese imports.
Tariffs ranging from 10% to 41% were enacted by the U.S. on August 1, covering more than 60 countries including the European Union, Canada, Japan, and South Korea, while India was hit with a 25% levy as of August 7. A universal duty of 50% was set for copper.
Container volumes increased 19.3% compared to pre-Covid July 2019, the report said, indicating long-term structural growth in import demand.
Import volumes in July were up 18.2% to 404,235 TEUs from June, above the 11.2% month-over-month gain in 2024 and the strongest m/m since early 2021.The report pointed out that 'tariff timing, not just seasonal demand cycles, is increasingly shaping U.S. import volumes.'
The top 10 U.S. ports saw container volumes improve 20.4% m/m month-over-month, a net gain of 379,578 TEUs with substantial increases at both West Coast and East/Gulf Coast ports.
Miami led all major ports with a 35.5% monthly improvement, followed by Houston, 34.2%, Oakland, 31.3%, and Savannah, 25.2%. The busiest U.S. gateways, Long Beach and Los Angeles, were up 24.1% and 18.0%, trailed by New York-New Jersey, 14.7%, and Charleston and Norfolk, each at 12%. Tacoma volumes gained by just 1.7%.
Punitive fees on China-linked vessels set to take effect later this year are leading some lines to shuffle tonnage, which may have some effect as container flows as carriers bypass secondary ports and shippers leverage transshipments through other hubs as they re-configure supply chains.
Despite the robust July increase, China imports were off 9.8% from the all-time high set in July 2024 of 1,022,913 TEUs.
Descartes said the broad recovery by product category showed that long-term sourcing shifts are a work in progress.
Furniture and bedding, plastics, and machinery remained the top three categories by volume, accounting for more than 38% of China-origin TEUs. Other segments included toys and sporting goods, electric machinery, and vehicles and parts.
Elevated tariffs, intensified customs enforcement, and the June enactment of a 40% U.S. tariff on transshipped exports from Vietnam make a forecast uncertain. 'Without a deeper tariff rollback or broader trade agreement, China's share of U.S. containerized trade may face renewed pressure,' the report stated.
Imports from China showed substantial increases at the top 10 U.S. ports, by 262,126 TEUs overall, a 42.9% m/m gain. Houston led all ports with a 122% spike, followed by Savannah, 90.2%, New York-Newark, 69.5%, Charleston, 78.9%, Norfolk, 51.4%, and Oakland, 53.9%. The U.S. ports closest to China – Los Angeles, 33.6%, and Long Beach, 26.7%, – also recovered well, while Tacoma, 10.2%, and Seattle, 14%, though lesser import destinations, saw gains. The report said broad-based growth after months of contraction underscores the change in trans-Pacific routing strategies to match fluid policy signals.
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