March U.S.-bound imports set a new record, reports Panjiva

The most recent batch of United States-bound import data, for the month of March, which was recently issued by global trade intelligence firm Panjiva, was better than good, with the firm reporting that imports topped the 3 million mark for the first time.

Total March U.S.-bound import shipments—at 1,274,802—rose 53.2% annually, and containerized freight imports—at 3,017,140 TEU (Twenty-Foot Equivalent Units) were up 50.5% annually. On a year-to-date basis through March, shipments are up 33.4%, to 3,618,519, and imports are up 28.2%, to 8,302,820.

Panjiva said that the import gains partly reflect disruptions caused to imports at the outset of the COVID-19 pandemic, adding that with March shipments up 36.9%, when compared to March 2019, indicates that the current import surge is not what it called a timing artifact.

On the product side, for March, Panjiva reported the following import numbers:

• consumer discretionary products increased 63.3%, following February’s 38.2% annual gain;
• healthcare and consumer staples increased 58.8% and 30.1%, respectively;
• total industrial imports were up 50.3%; and
• IT shipments were up 42.0%

In terms of origin locations, Panjiva said that imports from China were up 177% annually, far outpacing February’s 23.8% annual gain, with imports out of Vietnam next at 78.4%. Imports out of Europe were only up 1.2% annually, which Panjiva said suggests that much of the import expansion has been paced by both West Coast ports and consumer goods.

Panjiva Research Director Chris Rogers said in an interview that March was indeed a banner month for import growth, with ports and shippers getting every container in that they can, while dealing with congestion, and driven, in large part, by retailers struggling to keep up with existing demand, coupled with rebuilding inventories, too. More of the same level of activity is expected for April, he added.

“This is a data record in a month that is typically meant to be an off-peak month,” he said. “It is usually a time for port maintenance and time off, but there is a lack of down time now, to be sure, given what is happening with demand.”

For certain retail products, though, the outlook could be viewed as a little bit cautious, as once the services economy more fully reopens and people are traveling more, that is likely to bring in more consumer money and could subsequently lead to a rapid turnaround in demand, with the caveat that that this level of activity varies significantly from state-to-state in the U.S. and country-to-country globally.

Addressing imports originating out of China, Rogers called its February growth both unusual and exceptional.

“We often see double-digit annual growth in January and February, due to the timing of the Lunar New Year,” he said. “This is a very meaningful gain. Some regions have not seen that type of growth—like Europe and the U.S.—and that is interesting as Trans-Atlantic shipping rates hit a record high, driven by the network disruptions caused by the issues in the Suez Canal and also inherent demand growth. These are crazy times. April is likely to be the same, given how many ships are still trapped off shore. We may see more of what the underlying picture looks like as we get into June, ahead of the peak shipping season.”

What’s more, shippers now are needing to make decisions right now about contract rates and what they are willing to pay for container shipping and also how much they need to order for the upcoming holiday shopping season, with orders in around May for manufacturing and in July for September delivery, he said.

“That process is just getting underway, and most supply chain operators are facing significant uncertainty right now,” he said.