12 Dec Trade Volumes Decline As Market Demand Softens
US imports from Asia have experienced a substantial decline, reaching their lowest level in 20 months in October, as demand in the eastbound trans-Pacific falls from the record highs reached earlier this year.
According to data from PIERS, Asian imports in October totalled 1.44 million TEU, down 11 percent from October 2021 and the lowest monthly volume since February 2021.
Whilst in previous years October had signified the final month of the trans-Pacific peak season, this year saw retailers ship their holiday merchandise early in anticipation of supply chain bottlenecks and potential disruptions, leading to the steep decline in import volume.
Congruently, imports from Asia remained higher for the period of January through to October than during the same period of 2021. Data from PIERS shows import volumes rose by 2.4 per cent compared with the same 10-month period last year, however October imports were up only 2 per cent from October 2019, a signal that demand may be returning to pre-pandemic levels.
Looking ahead to 2023, the Global Port Tracker report forecasts a 5.3 percent year-over-year decline in imports through the dozen US ports it covers in the second half of the year, with softening volumes to continue into 2023 as US consumers contend with inflation and high interest rates, all of which aligns with the significant decline retailers are forecasting for 2023.
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