US retailers rush imports
According to the FBR report, the worth of 39 importers was just Rs14.7 billion but they imported Rs201 billion worth of goods. photo: file
Retailers are fuelling a summer rush of imports to the United States (US) this year as companies guard against a potential strike by port workers and ongoing shipping disruptions from attacks in the Red Sea ahead of a shortened holiday shopping season.
Container imports and freight rates surged in July, signalling an earlier than usual peak season for an ocean shipping industry that handles about 80% of global trade. July is expected to be the peak for US retailers, which account for about half of that trade, and August is expected to be almost as robust, analysts said.
Companies that import toys, home goods and consumer electronics have brought forward holiday promotions to capture customers who are shopping earlier each season. "Retailers don't want to be caught back-footed," said Jonathan Gold, the National Retail Federation's (NRF) Vice President for supply chain and customs policy. Many shippers expedited holiday goods orders, with some putting Christmas items on the water as early as May, said Peter Sand, Chief Analyst at pricing platform Xeneta.
The influx is not a result of consumer spending, which has been tethered by stubborn inflation and high interest rates, experts said. Rather, it is a precaution against a potential US port strike and the late November 28 date for Thanksgiving this year, squeezing the peak shopping and delivery season running to Christmas Eve. In July US container imports registered the third-highest monthly volume on record with 2.6 million 20-foot equivalent units (TEUs), up 16.8% from a year earlier.