Imports at many important container ports around the United States have slowed from pre-holiday peak but remain at unusually high as importers continue to bring in containers before tariffs are set to increase in January, these figures are due corresponding to the monthly Global Port Tracker report released on Nov. 9 by the National Retail Federation and Hackett Associates and reviewed by A1 Worldwide Logistics.
“Imports have usually dropped off significantly by this time of year, but we still see numbers that could have set records in the past,” NRF vice president for Supply Chain and Customs Policy Jonathan Gold said.
“Part of this is driven by consumer demand in the strong economy, but retailers also know that tariffs on the latest round of goods are set to more than double in just a few weeks. If there are shipments that can be moved up, it makes sense to do that before the price goes up.”
October logistic throughput was estimated at 1.89 million TEU, up 5.5% YOY. November numbers are forecast at 1.81 million TEU, up 2.9%, and December at 1.78 million TEU, up 3.7%. Jan 2019 is forecast at 1.81 million TEU, up 2.8% over Jan 2018; Feb at 1.8 million TEU, up 0.5% YOY, and March at 1.58 million TEU, up 3.2 %.
Import brokers set a monthly record of just over 1.8 million TEU in July ahead of 10% tariffs on $200 billion in goods from China that took effect in September and are scheduled to rise to 25% in January as Trump’s aggressive tariffs take effect.
“President Trump’s trade war with China and the threat of even higher tariffs in 2019 have created a mini-boom in imports and businesses have rushed to bring goods into the country ahead of the tariffs,” Hackett Associates Founder Ben Hackett said. “We are clearly in a politically motivated trade environment.”
While logistics numbers do not relate precisely with sales, the imports mirror 2018’s strong retail market. NRF recently forecasted that total 2018 holiday season retail sales are expected to increase 4.3 % and 4.8% over last year. Retail sales for all of 2018 are forecast to be up at least 4.5% over 2017.
The rate to ship an ocean container from China to the U.S. is now roughly twice as high as it was this time last year, shipping analysts said, as demand is picking up. “Capacity is insufficient,” said Philip Damas, director of Drewry Supply Chain Advisors Ltd. “Importers are not very happy because they’re struggling to get their cargoes moved in time [and] the prices are twice what they usually are.”
Have questions about how your business is going to handle these tariffs? Give us a call at (305) 821-8995 or send us an email at info@a1wwl.com
The tech revolution has taken over every industry, and the Supply Chain is no exception. With the arrival of digitalization, the Logistics & Supply Chain industry is going through a transformation. A1 Worldwide Logistics knows that as logistics become the backbone of every industry like retail, eCommerce, FMCG, hospitality, and healthcare. Businesses are aligning their strategies concerning the ongoing and upcoming logistics trends, i.e., Robotics, Artificial Intelligence (AI) and Machine-Learning algorithms. With these recent technological innovations, logistics companies are endeavoring to stay ahead of the curve and in front of their competitors. Based on A1 Worldwide Logistics observation of the past two years, here are some trends that shaped the logistics industry in 2018 and beyond:
Blockchain- The Blockchain technology first made its presence felt in the logistics in 2017 and has rapidly expanded to every facet of the industry. With the unparalleled security and transparency it offers, blockchain is an ultra-secure way to store and transmit transactional data. Also, it improves credibility with foolproof transactions. For example, if a customer’s ID is available digitally through a blockchain-based application, he cannot falsify it at the time of delivery. Likewise, a unique blockchain enabled registration number of every vehicle can be mapped to an outstanding delivery job. According to recent studies, By 2022, 27% of global companies will be conducting or using artificial intelligence and blockchain based automation applications in transactional procurement
The rise of Elastic Logistics-Elastic logistics refers to the flexibility to increase and reduce capacities to better align demands within the supply chain at any given timeframe. Elastic automation solutions increase the agility and elasticity of the logistics infrastructure to meet market fluctuations cost-effectively. It is not strictly a “one size fits all” solution. However, it provides a highly customizable answer to requirements like cost control, warehouse management, geographic restrictions, distributions channels, priority deliveries, and much more. The interaction of demand and supply defines the day-to-day operations in the logistics & supply chain industry.
Data-driven Logistics Driving Pre-emptive Logistics-. By anticipating the needs and analyzing data-patterns, companies can predict the demand, plan and align their logistics operations well in advance. In the ever-changing business world, staying ahead in delivering the right service at the right time is the key, and data-driven logistics will only help enhance the future of logistics. Companies are adopting big-data algorithms, data-visualization techniques, and smarter analytics to boost process efficiency and service quality by shortening the delivery times.
Overall, the trend is moving toward simplifying cumbersome processes; eliminate mundane and repetitive tasks to enhance the effectiveness of the organization and improving customer. A1 Worldwide logistics is here to guide your business in everything logistics related. Whether you are shipping electronics across town or sending a yacht to Singapore, we make it easy. Send us an email at info@a1wwl.com or call us at (305) 821-8995 and we’ll help you discover the right logistics solution for your business.
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