Sharp Rise in US Imports from China, Driving 11% Total Increase

The U.S. is seeing a sharp rise in imports from China, thanks to reopened factories post-Lunar New Year. Here's what's happening:

• Quick Stats:
  • Major Increase: Imports to top two million units by May, a first since last fall.
  • Total Forecast: About 11.7 million TEUs expected in the first half of 2024, up 11% from last year.

Growth Despite Challenges

Imports are booming despite hurdles like droughts affecting the Panama Canal and unexpected incidents like the Baltimore Port shutdown.

Ports Adjusting to New Realities

With Baltimore out of the picture, ports like Virginia are picking up the slack. This has even spiked local trucking costs as Norfolk truckers "charge a premium on dray rates," according to Drayage.com’s Jason Hilsenbeck.

Looking Ahead

Potential Long-Term Changes

Experts suggest more cargo might shift back to the West Coast due to ongoing East Coast challenges. Paul Brashier of ITS Logistics hints that this unplanned increase in demand will drive dray trucking rates upward.

While the U.S. deals with these shifts, the resilience of the American consumer keeps import numbers high. In other words, we just keep shopping.

Source: CNBC