On account of supply chain difficulties, US retail imports are predicted to decline in Q3. Retailers should be on the lookout for labour problems that are still developing at ports in western Canada, as well as a prospective Teamsters strike against United Parcel Service (UPS), notwithstanding the tentative contract deal that has been reached at West Coast ports.
The National Retail Federation (NRF) and Hackett Associates expressed worry last month about continued disruptions and how they would affect the forthcoming holiday season.
Jonathan Gold, NRF vice president for supply chain and customs policy, warned that while the temporary accord agreed at West Coast ports last month provided relief, supply chain impediments are still there.
While the ongoing port strike in Canada’s Prince Rupert and Vancouver may not have a significant impact on the US, Gold said that it may have an impact on US retailers who depend on item shipments through Canada. He also voiced worry about the possible impact on other ports.
He added: “The ability to move goods from US ports to stores could be impacted if UPS and the Teamsters don’t resolve their differences before their contract expires at the end of the month.”
Around 1.93 million Twenty-Foot Equivalent Units (TEU) were handled by US ports in May, an 8.5 per cent increase over April, according to Global Port Tracker. However, there was a 19.3 per cent decrease from the previous year.
Although port data for June has not yet been released, Global Port Tracker anticipates 1.86 million TEU, a 17.5 per cent reduction from the same month last year. As a result, the first half of 2023 is anticipated to total 10.6 million TEU, a 22 per cent decrease from the corresponding period in 2022.
Global Port Tracker has not yet announced its projection for the entire year, but it is anticipated that the third quarter would tally 5.9 million TEU, down 8.3 per cent from the year before.
