The July edition of the Global Shipping Report issued by Waterloo, Ontario-based Descartes, a provider of logistics based on-demand, software-as-a-service offerings, pointed to a mixed outlook for United States-bound container import volumes.
This the 47th edition of the Global Shipping Report, going back to its debut in August 2021.
June U.S.-bound container import volume—at 2,217,675 TEU (Twenty-Foot Equivalent Units)—was up 1.8% compared to May and down 3.5% annually, following a 9.7% sequential decline from April to May and a 7.2% annual May decline—with May volume seeing the impact of several months of import growth and a frontloading of imports, as the impact of new tariffs began to become apparent in May. For the first six months of the year, Descartes said that total imports were up 3.8% annually, although growth has slowed compared to earlier in the year.
The report explained that June’s sequential gains represent what it called a stabilization in import activity after May’s sharp decline and could also suggest that U.S. importers are adapting their supply chains amid ongoing trade volatility, with the pause on Liberation Day tariffs set to expire on July 9 [which was subsequently extended to August 1] and May’s U.S.–China 90-day trade truce set to expire on August 10, and a broader repeal of the de minimis exemption for low-value imports from all countries on the horizon.
“While U.S. container imports posted a small rebound in June, the effects of U.S. policy shifts with China in particular are visible for a second consecutive month,” said Jackson Wood, Director of Industry Strategy at Descartes. “As U.S. importers continue to assess and adapt their supply chains, two key trade deadlines—the July 9 expiration of the pause on sweeping Liberation Day tariffs and the August 10 expiration of the U.S.–China trade truce—may create further pressure on businesses to bolster supply chain resilience in the wake of a quickly fluctuating trade environment.”
U.S.-bound imports from China eked out a 0.4%, or 639,300 TEU, increase over May, while seeing a steep 28.3% annual decline, essentially continuing the sharp decline from May under increased tariffs and the removal of the de minimis exemption, on the heels of April front-loading, as importers moved to beat tariff deadlines. And the report also observed that China’s share of U.S. imports to a four-year low of 28.8%, below its February 2022 peak of 41.5%, as sourcing continues to diversify toward Southeast Asia and other regions.
That was made clear, as other top countries of origin, including several Southeast Asian nations, posted strong sequential volume growth, including Vietnam at 7.7% followed by Indonesia at 17.3%, Thailand at 8.6%, and Italy at 9.0%, suggesting continued momentum for diversifying sourcing strategies.
Other key findings in the report included:
- Container volumes at the top 10 U.S. ports were up 3.1%, or 55,733 TEU, from May to June, with the Port of Los Angeles up 29.1%, or 103,884 TEU, and the Port of Los Angeles up 29.1%, or 103,884 TEU, and on the other end, Savannah was down 16.9%, and followed by Houston, down 15.8%; and
- top West Coast ports rebounded sharply, increasing their volume share to 45.4%, up from 38.1% in May, and top East and Gulf Coast ports saw their share fall to 38.7%, a significant drop from the previous month’s 44.5%. The reversal suggests a partial rebalancing of trade flows reflecting the impact of the U.S.–China trade truce whereby tariffs on imports from China were reduced from the staggering 145% set in April to 30% effective mid-May. The report said this also aligns with modest gains in China-origin imports, which typically enter through Pacific-facing ports. Overall, the top 10 U.S. ports handled 84.1% of total imports in June, up from 82.6% in May.
Please click here to read the complete report.
