New data projects more than two million twenty-foot equivalent units (TEUs) worth of ocean imports to the U.S. in May, signaling an early start to the peak shipping season.
According to data from the National Retail Federation, monthly U.S. ocean imports are expected to crest the two million TEU mark by the end of May, before topping out at 2.1 million TEUs in August. The peak shipping season tends to kick off in August in a typical year, as retailers begin preparing for the holiday shopping season. This year, though, that ramp-up appears slated to arrive months earlier.
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Booking and payments platform Freightos suggests that this could be the result of “pulled-forward demand,” to head off potential delays from the Red Sea crisis, as well as concerns over East Coast port labor negotiations. CNBC reports that East Coast ports currently face a May 17 cutoff date to agree to local contracts with workers, so that a master contract can be drawn up with the International Longshoremen’s Association. In the Red Sea, Houthi rebel attacks on vessels have continued to strangle critical supply lanes, as ships have been forced to detour thousands of miles south around Africa’s Cape of Good Hope.
Shipping rates have also risen steadily as the situation in the Red Sea has continued. According to Freightos, ex-Asia rates to Northern Europe bumped up from $4,000 forty-foot-equivalent units (FEUs) to $4,151 between May 8 and May 15. Ex-Asia rates to the Mediterranean increased from $5,000 FEUs to $5,179 FEUs over that same period.
