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Imports Set New ‘Peak Season’ Record as Retailers Prepare for Holidays
Imports likely saw their busiest “peak season” on record this summer and fall as retailers replenished inventories and stocked up for the holiday season, according to the monthly Global Port Tracker report released on Monday by the National Retail Federation and Hackett Associates.
NRF’s Jonathan Gold says, “Peak season is the Superbowl of the supply chain world each year as retailers make sure they have enough merchandise on hand to satisfy demand during the holidays, and this is the busiest we’ve ever seen.”
Gold added, “Part of this surge was fueled by restocking after retail sales rebounded this summer and part could be making sure there aren’t shortages if we see panic buying again. The economic challenges of the pandemic aren’t over yet, but this clearly shows how an industry that has been under stress is fighting back in a positive way. Retailers don’t import merchandise they don’t think they can sell, so this is a good sign for the holiday season.”
U.S. ports covered by Global Port Tracker handled an estimated 8.1 million Twenty-Foot Equivalent Units (TEUs) from July through October, the peak shipping season when retailers rush to bring in merchandise for the winter holidays each year. While subject to revision once October numbers become final, that would be an increase of 6.1% over last year and would beat the previous record of 7.7 million TEU set in 2018.
Despite the new monthly records, 2020 is expected to total 20.9 million TEU, a drop of 3.4% from last year and the lowest annual total since 20.5 million TEU in 2017. The first half of 2020 totaled 9.5 million TEU, down 10.1% from last year.
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