The latest global shipping report from Descartes Systems Group reveals significant month-over-month growth in US container imports during January 2023, potentially signaling a rebound after months of decline. The data provides crucial insights into evolving supply chain dynamics and port performance across the United States.
Key Findings from Descartes' 19th Global Shipping Report
The February 2023 edition of Descartes' monthly report, based on data from its logistics software platform, highlights several noteworthy trends:
- Notable Import Growth: US container imports reached 2,068,943 TEU in January, marking a 7.2% increase from December's 1,929,032 TEU. This represents the largest December-to-January growth in six years.
- China's Resurgent Exports: Imports from China surged 11% month-over-month to 762,967 TEU, though still down 24% from August 2022 levels.
- Diverging Port Performance: Most major US ports saw increased volumes, with Long Beach, Houston, New York/New Jersey, Los Angeles, and Tacoma showing the strongest gains. Savannah was the only top-10 port to experience a decline.
- Ongoing Supply Chain Pressures: Despite the import rebound, challenges including port congestion, labor issues, and global economic uncertainty persist.
January's import volume nearly matched pre-pandemic January 2019 levels (just 0.3% lower), while showing a 16.1% year-over-year decrease from January 2022.
Analyzing the Import Rebound
Drivers Behind the Growth
Several factors contributed to January's import increase:
- Seasonal Patterns: December typically represents an import trough before January's restocking cycle begins.
- Economic Resilience: Strong US consumer demand continues to fuel import needs despite global headwinds.
- Inventory Replenishment: Businesses appear to be rebuilding inventories in anticipation of future demand.
- Chinese Production Recovery: The end of China's zero-COVID policy has enabled manufacturing and export capacity to rebound.
Port-Specific Dynamics
The report reveals significant variation among US ports:
- West Coast Recovery: Long Beach (+14.4%) and Los Angeles (+2.8%) show improving volumes after 2022's declines.
- Energy-Driven Growth: Houston's 22.4% surge likely reflects increased US energy exports.
- East Coast Stability: New York/New Jersey's 6.4% growth indicates sustained demand for East Coast gateways.
- Congestion Challenges: Savannah's decline highlights ongoing operational difficulties at some ports.
Market Share Shifts
The report tracks notable changes in port market concentration:
- West Coast ports regained 0.5% market share (now 38.6%), continuing a recovery from October's 36.6% low.
- East Coast/Gulf Coast ports saw a 0.3% decline to 45.2%.
- Top 10 ports collectively gained share (84.0% vs. 83.6%), though remain below early 2022's 86.6% peak.
Expert Perspective
Chris Jones, Descartes' Executive Vice President of Industry and Services, noted the surprising strength of January's rebound: "Given prevailing economic concerns, seeing imports hold steady with 2019 levels is noteworthy. The 7.2% month-over-month growth aligns with US GDP growth trends."
Jones emphasized that while the data suggests stabilization, multiple factors could disrupt 2023 supply chains, including:
- Ongoing West Coast labor negotiations
- Global economic volatility
- Geopolitical tensions affecting trade flows
Strategic Implications for Businesses
The report suggests several proactive measures for supply chain managers:
- Diversify Supply Networks: Reduce reliance on single sources or transportation routes.
- Optimize Inventory Strategies: Balance stock levels to meet demand without overcapitalization.
- Accelerate Digital Transformation: Implement technologies that enhance supply chain visibility and responsiveness.
- Strengthen Partner Collaboration: Work closely with logistics providers to navigate ongoing challenges.
As global supply chains continue evolving, this data provides valuable benchmarks for assessing recovery trajectories and identifying emerging opportunities in international trade flows.