North American container imports are expected to drop to their lowest level since early 2021, maritime consultancy Hackett Associates said, as weakening demand drives freight rates lower.

While TEU imports in North America are still up a healthy 3.6 per cent in the first eight months of 2022, a 2.9 per cent decrease is projected for the second half (H2) of 2022, with that number projected to fall 9.6 per cent in the first half (H1) of 2023. North American container imports are expected to drop to their lowest level since early 2021.

“The growth in US import volume has run out of steam, especially for cargo from Asia,” said Ben Hackett, partner at Hackett Associates. “The declining demand is forcing significant cuts in ship capacity being offered by carriers, and the historical peak season increase in shipments has not appeared, adding to the woes of carriers.”

Freight rates have continued to descend as liners attempt to maintain healthy vessel utilisation in a slowing market to sustain market share.

Platts, part of S&P Global Commodity Insights, assessed the key Far East-US Pacific Coast trade route at $2,000/forty-foot equivalent units (FEU) October 10, down 52.3 per cent on the month and at the lowest value since May 29, 2020.

S&P Global projects rates on the Platts Container Rate 13 — North Asia-to-West Coast North America — route to slide further in the fourth quarter and into the new year before levelling out in February. North Asia to US West Coast rates for October-January are projected to reduce by an average 9 per cent per month and settle at a low of $1,500/FEU in January before rebounding to an average $1,650/FEU in Q2 2023.

US Atlantic Coast ports outperformed those on the Pacific Coast during August, when combined loaded import volumes fell 8.7 per cent month-on-month to 1.21 million TEUs. US East Coast ports notched 106,000 TEUs of additional imports during the period, a 9.9 per cent increase on the year.

Fibre2Fashion News Desk (NB)