This week:
- Numerous retailers and direct importers are decreasing inventories after two years of carrying excess stock, as they start planning for an increase in purchasing in 2024.
- The short-term contracts for loads traveling from India to the U.S. East and West Coasts have dropped more than 10% in November.
- Constrained capacity has created a surge in Asia to North America air cargo rates.
- The Port of Virginia saw a 4% year-over-year drop in cargo volumes in October.
- Cargo volumes at the Port of Savannah fell around 19% in year-over-year margins in October.
As Imports Drop, U.S. Warehouses Shed Inventory
Numerous retailers and direct importers are decreasing inventories after two years of carrying excess stock, as they start planning for an increase in purchasing in 2024, according to reporting by the Journal of Commerce.
Experts say that they’re cautiously optimistic about imports next year, as they see signs of possible movement.
“Everyone we have spoken to has finally gotten their excess inventory down, so potentially there could be a surge of imports,” David Bennett, chief commercial officer at forwarder Farrow, told the Journal.
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Contract Rates On India-U.S. Route Drop Despite Mitigation Efforts
The short-term contracts for loads traveling from India to the U.S. East and West Coasts have dropped more than 10% in November, according to data acquired by the Journal of Commerce via freight forwarders.
This is despite an uptick in blank sailings that were announced for November, which was designed to help the ongoing problem.
Despite the mitigation efforts not producing the results desired, there is some optimism for trade recovery on the route via container volumes, which saw a 5% month-on-month increase.
“The growth in merchandise exports is a good sign as this has happened despite weak demand and moderation in commodity prices,” A. Sakthivel, president of the Federation of Indian Export Organizations, told the Journal.
Asia To North America Air Cargo Rates See Surge
Constrained capacity has created a surge in Asia to North America air cargo rates, according to experts.
Air cargo rates jumped 7% from Asia to both North America and Europe, despite volume drops, due to bad weather and little belly capacity.
“That Asia Pacific to North America rates are up significantly despite a fall in tonnages may reflect several factors, including operational disruptions caused by severe snow at Alaska’s Anchorage Airport and continuing limits on passenger belly hold capacity between China and the US,” Netherlands-based air freight analyst WorldACD stated in its weekly report.
Experts say that there is little sign of a traditional peak season emerging.
Port Of Virginia Sees October Cargo Drop, But Increase From Before Pandemic Years
The Port of Virginia saw a 4% year-over-year drop in cargo volumes in October, but the volumes were an improvement from what the port saw that month in 2019, prior to the pandemic.
Despite the drop from 2023 compared to 2022, the port saw a 15% increase in cargo volumes from the same month in 2019. The 306,574 total TEUs in October were also a 13% increase from the volumes in September 2023.
The port is also getting a $59.9 million investment from plastics and polymers company Katoen Natie Norfolk, according to a press release from the Virginia Economic Development Partnership. That’s seen as a positive outlook for the future.
“This announcement shows the confidence Katoen Natie has in the port’s ability to safely and sustainably move its cargo to world markets for years to come,” Stephen A. Edwards, CEO and executive director of the Virginia Port Authority, said in a press release. “This company is a valued port user, and we welcome the opportunity to work with the Katoen Natie team to ensure even greater success.”
Port of Savannah Cargo Volumes Tumble 19% This October Compared To 2022
Cargo volumes at the Port of Savannah fell around 19% in year-over-year margins in October, although the port said in a press release that 2023 was its fourth-busiest October ever and a 5% increase over the same month in 2019.
The port also announced that its dock renovations and crane commissioning is complete, opening all berths.
“For the first time in two and a half years, all berths are open at Garden City Terminal for faster, more efficient cargo handling,” said Georgia Ports Authority President and CEO Griff Lynch in a press release. “We appreciate our customers’ patience during the renovation of Berth 1, and look forward to providing the world-class vessel service they have come to expect from GPA.”
Photo by Rinson Chory on Unsplash
