Skip to content
Search AI Powered

Latest Stories

newsworthy

Coronavirus could crimp U.S. retail sales for February, study warns

Production expected to fall as Chinese government extends factory shutdowns beyond Lunar New Year, NRF says.

As the contagious coronavirus continues to rage across Asia, China has taken steps to curtail new infections by imposing quarantines on certain cities and factories, a move that could trigger a drop in imports by U.S. retailers.

February is already a slow month for imports every year, since many factories and warehouses close their doors during Lunar New Year celebrations. But that effect could be magnified in 2020, since the Chinese government has extended those factory shutdowns, according to the Global Port Tracker report released today by the National Retail Federation (NRF) and consulting firm Hackett Associates.


In response, imports at major U.S. retail container ports are expected to see a sharper-than-usual drop this month, the report found. "February is historically a slow month for imports because of Lunar New Year and the lull between retailers' holiday season and summer, but this is an unusual situation," NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a release. "Many Chinese factories have already stayed closed longer than usual, and we don't know how soon they will reopen. U.S. retailers were already beginning to shift some sourcing to other countries because of the trade war, but if shutdowns continue, we could see an impact on supply chains."

That turmoil would exacerbate an already tumultuous trade environment that has been roiled by the U.S.-China trade war, the group said. For example, U.S. ports covered by Global Port Tracker handled 1.72 million twenty-foot equivalent units (TEUs) in December, the latest month for which after-the-fact numbers are available. That was up 1.8 percent from November but down 12.4 percent from unusually high numbers at the end of 2018 ahead of a scheduled tariff increase that was ultimately postponed.

"Projecting container volume for the next year has become even more challenging with the outbreak of the coronavirus in China and its spread," Hackett Associates Founder Ben Hackett said in the release. "It's questionable how soon manufacturing will return to normal, and following the extension of the Lunar New Year break all eyes are on what further decisions China will make to control the outbreak."  

December's numbers brought 2019 to a total of 21.6 million TEU, a 0.8 percent decrease from 2018 amid the ongoing trade war but still the second-highest year on record. Imports during 2018 hit a record of 21.8 million TEU, partly due to frontloading ahead of anticipated 2019 tariffs.

January was estimated at 1.82 million TEU, down 3.8 percent from January 2019. February is forecast to be down 12.9 percent year-over-year at 1.41 million TEU and March is expected to down 9.5 percent year-over-year at 1.46 million TEU. Before the coronavirus outbreak, Global Port Tracker had forecast February at 1.54 million TEU and March at 1.7 million TEU.

While the duration of the coronavirus impact remains unknown, April is currently forecast at 1.82 million TEU, up 4.5 percent year-over-year; May at 2 million TEU, up 8.3 percent, and June at 1.95 million TEU, up 8.5 percent. Those numbers would bring the first half of 2020 to 10.47 million TEU, down 0.4 percent year-over-year.

Global Port Tracker, which is produced for NRF by Hackett Associates, covers the U.S. ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Port of Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast, and Houston on the Gulf Coast.

The Latest

More Stories

drone flying through warehouse

Robotic revolution

Robots are revolutionizing factories, warehouses, and distribution centers (DCs) around the world, thanks largely to heavy investments in the technology between 2019 and 2021. And although investment has slowed since then, the long-term outlook calls for steady growth over the next four years. According to data from research and consulting firm Interact Analysis, revenues from shipments of industrial robots are forecast to grow nearly 4% per year, on average, between 2024 and 2028 (see Exhibit 1).

market forecast for industrial robots - revenues graphEXHIBIT 1: Market forecast for industrial robots - revenuesInteract Analysis

Keep ReadingShow less

Featured

Freight Science dashboard screen
Freight Science

High-tech solution helps truckload carrier drive change

The trucking industry faces a range of challenges these days, particularly when it comes to load planning—a resource-intensive task that often results in suboptimal decisions, unnecessary empty miles, late deliveries, and inefficient asset utilization. What’s more, delays in decision-making due to a lack of real-time insights can hinder operational efficiency, making cost management a constant struggle.

Truckload carrier Paper Transport Inc. (PTI) experienced this firsthand when the company sought to expand its over the-road (OTR), intermodal, and brokerage offerings to include dedicated fleet services for high-volume shippers—adding a layer of complexity to the business. The additional personnel required for such a move would be extremely costly, leading PTI to investigate technology solutions that could help close the gap.

Keep ReadingShow less
indigo software screenshot WMS

Aptean adds British WMS vendor in latest acquisition

The Georgia-based enterprise software vendor Aptean today said it had acquired Indigo Software Ltd., a British provider of purpose-built warehouse management and logistics software solutions.

Terms of the deal were not disclosed, but Aptean said the move will add new capabilities to its warehouse management and supply chain management offerings for manufacturers, wholesalers, distributors, retailers, and 3PLs. Aptean currently provides enterprise resource planning (ERP), transportation management systems (TMS), and product lifecycle management (PLM) platforms.

Keep ReadingShow less
schneider app screenshot for owner operators

Schneider seeks more business with owner-operators

Transportation and logistics service provider Schneider National Inc. is reaching out to owner-operators, encouraging them to do more business with the Wisconsin company using an updated digital platform.

Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.

Keep ReadingShow less
trucks used by jillamy 3PL

Texas 3PL Mode Global acquires Jillamy’s freight brokerage arm

The Texas third-party logistics firm (3PL) Mode Global has acquired the freight brokerage business of supply chain service provider Jillamy, saying on Monday that the deal advances its strategy of expanding its national footprint.

Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.

Keep ReadingShow less