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Consumer Spending, Trade Concerns Fuel US Cargo Volume Surge
The National Retail Federation reported that cargo volume surged at major U.S. ports in the first half of the year. Retail imports will reach 10.2 million 20-foot equivalent units, representing an increase of 3.8% over the same period last year.
The group says the increase is largely being driven by consumer spending and a growing concern among manufacturers and retailers about U.S. trade policy. Strong U.S. economic growth is resulting in more goods flowing through supply chains, and companies are also trying to get ahead of expected new tariffs by ramping up orders for parts and products from overseas. Goods from China accounted for 46% of all container imports to the U.S. during the first five months of the year, reports shipping analyst Alphaliner.
The surge is reflected in numbers reported by the U.S.’s main port of entry for goods from Asia, the ports of Los Angeles and Long Beach. Container imports there rose 2.3% year over year in May, and exports were up 7.9%, the highest monthly volume of loaded containers since last November. Through May 2018, imports at the SoCal ports were up 4.6% over the same period last year.
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