US imports down 60% in May ’20 in the WORST ever trade year; Asian countries feel the brunt!

The year 2020 hasn’t been good for the world trade of apparels, and the hardest hit is obviously taken by the largest importer – the USA. The country was significantly down in its imports by 12.07 per cent on Y-o-Y basis to import US $ 17.85 billion worth of apparels in the first quarter of the year – January to March ’20, which is widely considered as the pre-COVID-19 time as against US $ 20.30 billion in the Q1 ’19.

In March-April-May ’20, the apparel import of the USA fell 40.43 per cent in values as compared to the same period of the previous year to clock US $ 11.25 billion, while the decline in March-May ’20 from January-March ’20 was 35.90 per cent, which is a severe fall on quarterly basis – all because of COVID-19 hitting the world after mid-March.

The fall in May ’20 was a whopping 60 per cent and the USA’s apparel import value shrunk to US $ 2.65 billion as against US $ 6.66 billion in the same month of the prior year, while on M-o-M basis, the USA’s import values tumbled by 22.13 per cent in May ’20 over April ’20.

Asian countries feel the brunt of the pandemic

The dismal apparel imports of the USA impacted Asian countries quite negatively. Most of these Asian countries were themselves facing lockdown; hence, factories were closed, so no previously placed orders were processed after mid-March till late May this year.

China lost big share in the US market in January to March 2020 and this loss clearly reflects that both Vietnam and Bangladesh gained share during this period, but India did not benefit from the shift. However, as COVID-19 hit these countries, March-April-May ’20 period remained more negative than expected.

Key observations of top five exporting destinations to the USA in Jan.-Mar. ’20; March-April-May ’20 and in months – April ’20 and May ’20 –

Vietnam gained till March’ 20 and fell badly in March-April-May ’20 quarter…

1. Vietnam took a solid dent in May ’20 and dropped by 41 per cent from May ’19. The monthly decline in Vietnamese shipment in May ’20 over April ’20 was 22.45 per cent.
2. The pandemic effects could be seen in Vietnam’s export value – US $ 805.34 million – which fell by 20 per cent in April ’20 over April ’19. Vietnam shipped US $ 184 million worth of more garments to the USA than China in April ’20.
3. Earlier in the period January to March ’20, Vietnam had seen a yearly growth of 4.50 per cent and managed to ship US $ 110 million more garments than China to the USA.
4. Vietnam constituted 18.93 per cent in overall import value of the USA in Q1 ’20 as against 15.93 per cent share in the same period of 2019.
5. Collectively in March-April-May ’20 period, Vietnam’s shipment values of apparels to the USA fell by 19.22 per cent to clock US $ 2.42 billion as compared to US $ 3 billion in the same period of the previous year.
6. The UVR of Vietnamese apparel shipment in March-April-May ’20 stood at US $ 3.32 as against US $ 3.16 in the same period of 2019. This is a 4.82 per cent yearly rise.

China’s revival (monthly) can be seen in its May ’20 shipment…

1. China’s apparel shipment to the USA declined by 60 per cent in May ’20 over May ’19 to US $ 723.68 million. Volumes too fell by 54 per cent on Y-o-Y basis to 393.31 million SME.
2. China’s May ’20 shipment over April ’20 registered a clear surge of 16.53 per cent and this indicates China has somehow managed to gradually start increasing its share in the US market as pandemic situation subsides.
3. In April ’20, China noted 59 per cent fall in its exports. The shipment value stood at US $ 621 million in the month which is US $ 895 million less than what China had exported to the USA in the same month of 2019.
4. China declined by 43.12 per cent to ship US $ 3.27 billion apparels to the USA in January-March period of 2020. This was the largest decline China had ever noted in the opening quarter of any year in its exports to the USA. March was the period when China saw relaxed lockdown and the industry was again ready to ship products.
5. This significant fall led to reduction in China’s share to 18.32 per cent in January-March ’20 from 28.32 per cent in the same period of 2019. The major reason for this disruption lies in the figures of March, as in this month, China tumbled by 52 per cent and was able to ship just US $ 572.36 million worth of apparels to the USA as against US $ 1.20 billion worth of shipment in March 2019, suffering a total loss of US $ 630.75 million.
6. The UVR of the Chinese shipment shrunk to below US $ 2 for the first time. With 16 per cent decline in unit prices on yearly basis in January to March ’20, China got US $ 1.91 per SME of the shipped apparels.
7. In March-April-May ’20 period, China’s apparel shipment values to the USA stood at just US $ 1.91 billion, a 57.81 per cent fall from the same period of the prior year.
8. The decline noted in Chinese shipment to the USA in March-April-May ’20 period was 40 per cent over January-March ’20

Bangladesh got no relief! Fall remains inevitable after a profitable Q1 ’20…

1. Bangladesh managed to increase its share to 9.38 per cent in January-March ’20 as against 7.77 per cent in January-March ’19 in total import value of the USA. The country clocked US $ 1.67 billion in its exports to the USA in this period, noting 6.73 per cent yearly growth.
2. Bangladesh also benefited in the first quarter with growth by 5.77 per cent to export 602.98 million SME garments to the USA worth US $ 1,674.62 million, upping 6.73 per cent on Y-o-Y basis.
3. However, in the very next period – March-April-May ’20, Bangladesh fell by 27.96 per cent from the same period of 2019 to clock US $ 1.09 billion and the decline as compared to January-March ’20 was 34.78 per cent.
4. The shipment started falling from April ’20 due to country-wide lockdown and the US buyers’ order cancellations.
5. The shipment sharply nosedived in May ’20 and Bangladesh reported its worst-ever performance in the US market as its apparel exports to its biggest destination declined from May ’19 by 68 per cent in values (US $ 168.45 million) and 66 per cent in volumes (60 million SME).

India’s misery continued, as it’s the worst hit Asian country in terms of exports to the USA…

1. India’s performance in May’20 remained worst among the top exporting destinations. The country shrunk by 84 per cent on yearly basis to ship apparels worth US $ 62.98 million and volumes decreased by 82 per cent to just 19.64 million SME.
2. India reported drastic fall of 71.43 per cent in its export values on M-o-M basis in May ’20 over April ’20.
3. The lockdown forced factories shutdown in India from late March and this resulted in drastic deceleration of 46 per cent in the country’s apparel export value to the USA, which stood at US $ 220.50 million in April ’20.
4. The start of 2020 wasn’t too good for India and apparel exports were down by 0.83 per cent on Y-o-Y basis in volume term (322.12 million SME) during January to March ’20, while the decline noted in values (US $ 1,141.15 million) was 1.50 per cent.
5. In March-April-May ’20 – the actual COVID-19 hit period – India was able to ship just US $ 664.36 million which is a fall of 44.65 per cent on Y-o-Y basis. The value significantly shrank from January to March ’20 period by 41.78 per cent and the huge negative gap in export value of India could easily be seen between both these quarters.

Y-o-Y % change in volumes of apparel exports to USA:

Y-o-Y % change in values of apparel exports to USA:

Y-o-Y and M-o-M % change in volumes of apparel exports to USA:
(Comparison between May ’20 over May ’19 and May ’20 over April ’20)

Y-o-Y and M-o-M % change in values of apparel exports to USA:
(Comparison between May ’20 over May ’19 and May ’20 over April ’20)