U.S. Port Volumes Rise as Retailers Add Inventory Ahead of Holiday Season
August 22 2017 - 2:17PM
Dow Jones News
By Erica E. Phillips
U.S. retailers and manufacturers are stocking-up their
inventories with newfound confidence heading into this year's peak
shipping season, when imports typically tick up ahead of the
end-of-year holidays.
American ports took in the equivalent of 1.72 million 20-foot
containers in July, just shy of a record, according to preliminary
data from the National Retail Federation. Importers and logistics
firms attributed July's blockbuster growth to rising consumer
confidence, which hit its second-highest level since 2000,
according to the Conference Board. Shipments of auto parts,
furniture and back-to-school related goods were among the strongest
categories of growth, analysts with Panjiva, a trade data service,
said.
Midsummer through early fall is typically the peak season at
U.S. ports, as retailers stock up for the holidays. But in recent
years the usually-busy months have seen uneven or flat volumes as
retailers worked through excess inventories. Many ordered fewer
goods from overseas to slim-down their supply chains as more
customers shopped online. But import data this year shows retailers
are coming to the end of that process, and are now restocking to
match rising demand.
"We've imported more this year than in many years past," said
Mark Morales, owner of furniture-import business Charles Jacobsen.
Mr. Morales said his showroom in Culver City, Calif., is currently
"stacked to the rafters" with Asian antiques, the firm's specialty,
for its annual August sale.
Imports surged 15% in July at the neighboring ports of Los
Angeles and Long Beach, Calif., the nation's biggest port complex.
The Port of Savannah, Ga., the second largest East Coast port,
reported its busiest July ever and Houston's port saw a 13% jump in
loaded import containers year-over-year.
Southern California-based supply chain management group Unis Co.
is anticipating "another record-breaking Black Friday," according
to chief executive James Lin. Unis handles cargo ranging from
flat-screen TVs and electronics to industrial and automotive parts
for its customers, who usually begin ramping up imports this time
of year, Mr. Lin said.
Container imports to the U.S. come primarily from Asia, where
manufacturing costs are generally lower. In past years goods like
furniture and toys mainly came from China, but this year has seen a
swing toward even cheaper labor markets, said Chris Rogers, with
Panjiva. Imports from Vietnam rose 28.4% last month, compared with
a 10.2% rise for Chinese-made goods.
Manufacturers are also importing more parts, a sign they could
be planning to ramp up production at U.S. factories, Mr. Lin said.
Manufacturing growth has been sluggish, with an especially sharp
drop recently in auto manufacturing. A pickup in that sector would
drive the market for trucking and other freight-hauling
businesses.
"Many companies have announced U.S. factories they're trying to
get online" in the fourth quarter, Mr. Lin said. "It's [part of] a
transition plan into having domestic manufacturing."
Write to Erica E. Phillips at erica.phillips@wsj.com
(END) Dow Jones Newswires
August 22, 2017 14:02 ET (18:02 GMT)
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