April 2024 Containerized Imports Surpass March 2024 and April 2023

In April 2024, U.S. container import volumes increased 3.0% from March and 9.3% when compared to the same month last year, consistent with a strong and resilient economy in the face of global instability.  

After a significant decline in March 2024, April’s Chinese imports bounced back, regaining volumes seen in April 2023. Port transit delays continue to improve across the board as there has been little impact on East and Gulf Coast import volumes from either the Panama drought or the Middle East conflict, which continues to escalate and broaden.  May’s update of logistics metrics monitored by Descartes reinforces the success seen in the first quarter of 2024. Despite strong U.S. container imports, global supply chain disruptions are still expected throughout the year ahead because of ongoing conditions at the Panama and Suez Canals, upcoming labor negotiations at U.S. South Atlantic and Gulf Coast ports, the Middle East conflict, and reduced U.S. port capacity caused by the collapse of the Francis Scott Key Bridge in March.  

Versus April 2023, TEU import volume was up 9.3%, demonstrating exceptional year-over-year performance (see Figure 1). April 2024 U.S. container import volumes ticked up from March 2024, increasing 3% to 2,208,849 twenty-foot equivalent units (TEUs). However, in our previous report we noted the effects of the Chinese Lunar Year which impressed upon March’s growth. The effect of this likely softened April’s growth from March 2024. Compared to pre-pandemic April 2019, volume was up 15.1%. 

Figure 1: U.S. Container Import Volume Year-over-Year Comparison 

Source: Descartes Datamyne™

The March to April transition has seen strong growth in the previous six years if we ignore the impact of the pandemic (2020 - 2022) (see Figure 2). Some of this can be attributed to the impact of the Chinese Lunar New Year in March. However, in 2024, the growth month-over-month appears more muted, possibly more due to a very strong March performance than a weak April. 

Figure 2: March to April U.S. Container Import Volume Comparison 

Source: Descartes Datamyne™ 

For the top 10 U.S. ports, container import volume in April 2024 pushed higher with an increase of 72,454 TEUs (3.9%) versus March 2024 (see Figure 3). The ports of Long Beach (up 56,640 TEUs), Los Angeles (up 38,508 TEUs), Norfolk (up 13,615 TEUs), and Tacoma (up 10,841 TEUs) experienced the greatest container volume increases from March. The port of Oakland posted the largest decline, falling 6,833 TEUs (-9.2%). In this report, Descartes has moved Philadelphia into this month’s Top 10 as volumes at the port of Baltimore are no longer qualified to be among the group. 

Figure 3: March 2024 to April 2024 Comparison of Import Volumes at the Top 10 U.S. Ports 

Source: Descartes Datamyne™ 

Chinese imports into the U.S. recaptured ground in April as imports rebound from this year’s Chinese Lunar New Year to 757,141 TEUs. Compared to the August 2022 high of 1,003,725 TEUS, April 2024 Chinese imports in are down 24.6%, narrowing the gap slightly from March 2024 (down 30.5%) (see Figure 4). The top two commodity codes (HS-2s) continued to be consumer-oriented goods such as HS-94 (Furniture, Bedding, etc.), HS-39 (Plastics and Articles Thereof). China represented 34.3% of the total U.S. container imports in April, an increase of 1.8% from March, and down 7.2% from the high of 41.5% in February 2022. 

Figure 4: April 2023 – April 2024 Comparison of U.S. Total and Chinese TEU Container Volume  

Source: Descartes Datamyne

For the top 10 countries of origin (CoO), U.S. container import volume in April 2024 gained 77,351 TEUs, a 5.24% increase from March. Imports from Vietnam (down 3,573 TEUs) and South Korea (down 3,661 TEUs) experienced the greatest volume decrease while China (up 61,865 TEUs), Japan (up 9,730 TEUs), and Taiwan (up 9,566 TEUs) represented the largest volume increases (see Figure 5). 

Figure 5: March 2024 to April 2024 Comparison of U.S. Import Volumes from Top 10 Countries of Origin 

Source: Descartes Datamyne

In April 2024, container import volume share at West Coast ports gained considerably from March as East and Gulf Coast were up only slightly. Comparing the top five West Coast ports to the top five East and Gulf Coast ports in April 2024 to March 2024 showed that total container import volume at the top West Coast ports increased to 42.8% (up 8.4%) of total container import volume, and the top East and Gulf Coast ports decreased slightly to 43.9% (down 2%). Compared to smaller ports, share at the top 10 ports in April 2024 increased to 86.7%, up 2.9% versus March 2024 (see Figure 6). 

Figure 6: Volume Analysis for Top Ports, West Coast Ports and East and Gulf Coast Ports  

Source: Descartes Datamyne

April 2024 port transit delays improved for the top ports (see Figure 7) except the Port of Norfolk, VA, which increased slightly over March’s delay average. The Port of Tacoma, WA saw the largest decline in delays (2.8 days) followed by Houston (1.7 days).  

Figure 7: Monthly Average Transit Delays (in days) for the Top 10 Ports (Feb. 2024 – Apr. 2024) 

Source: Descartes Datamyne™

Note: Descartes’ definition of port transit delay is the difference as measured in days between the Estimated Arrival Date, which is initially declared on the bill of lading, and the date when Descartes receives the CBP-processed bill of lading.

In April, the Panama Canal Authority (ACP) announced maintenance work at the Gatun locks from May 7–15, reducing transit capacity from 20 slots to 17 per day at the Panamax locks for the duration of the work. Following completion, ACP will increase the number of transits from 24 to 32 as water levels have continued to improve, reducing the effect of the sustained drought on the canal’s capacity. The increase in slots will still be shy of the normal operating capacity of 36. 

The attacks and ongoing threats on shipping in the Red Sea by the Houthi from Yemen continue to force shippers to divert cargo that would traditionally move through the Suez Canal to longer and more expensive shipping lanes. Shipping concerns will likely increase if the Middle East is further destabilized.  

With 214,245 TEU volume, Gulf Coast ports fell slightly in April compared to March (down 5.3%) (see Figure 8). The softer volumes at East and Gulf Coast ports also meant that port transit times improved.  

Figure 8: May 2023 to April 2024 U.S. Gulf Coast Container Imports 

Source: Descartes Datamyne™

Unsurprisingly, the Port of Baltimore fell dramatically from March (-35,578 TEUs; -3,454.2%). The recent collapse of the Francis Scott Key Bridge has nearly shut down all the port’s capacity. It is likely that the Port of Norfolk captured some of Baltimore’s volume with 13,615 TEU of month-over-month growth. However, a considerable amount of Baltimore’s volume is still unaccounted for and it’s difficult to say how the displaced volume is affecting other ports. It's likely that some of the affected importers are still weighing alternative trade routes. Descartes expects further growth at other East Coast ports over the coming months as goods find their way through alternative channels. 

The potential severity of trade disruption stemming from the expiration of the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) agreement is currently unknown. The agreement is scheduled to expire at the end of September 2024 and, if no resolution is reached, labor action could disrupt operations at these ports. ILA leadership has communicated that they do not intend to extend the current agreement and have advised members to brace for the possibility of a coast-wide strike in October 2024. There have been no indications of progress from either organization. 

U.S. container import volume increased in April 2024 and maintained a strong position when compared to pre-pandemic 2019 statistics for the same period. The economy continues to exceed expectations, with impressive import volumes. However, challenges with the Panama Canal, an escalating conflict in the Middle East, pending ILA contract negotiations, and recent infrastructure challenges at the Port of Baltimore, point to potential trade flow disruptions. Here’s what Descartes will be watching in 2024 to see if global supply chain performance will continue to improve: 

• Monthly TEU volumes between 2.4M and 2.6M. This level will continue to stress ports and inland logistics until infrastructure improvements are made. April U.S. container import volumes remained manageable, near 2.2M TEUs. 
• Port transit wait times. If they decrease, it’s an indication of improved global supply chain efficiencies or that the demand for goods and logistics services is declining. April transit delays reflected considerable improvement and stability across the board. 
• Continuing impact of the pandemic. The spread of COVID subvariants continues to add uncertainty to the trajectory of the pandemic and impact supply chains in unpredictable ways as different countries are affected at different times and for different durations. New COVID variants are causing infection rates to rise. The impact on supply chains and logistics resources has yet to be observed but developments need to be closely monitored throughout the year.   
• The economy. The U.S. is an import-driven economy, so economic health is an important indicator of container import volumes. As of May 6^th, the Federal Reserve borrowing rate remained at 5.3% (as of April 5th) to slow inflation which remains at March’s reported 3.8% until updated CPI data is released May 15^th. Job growth remains strong, and the unemployment rate has remained favorably low. Yet, consumers continue to spend as the inflation adjusted personal consumption expenditures of durable goods was up slightly again in March (latest available numbers), and still near the high for the last two years.  
• Panama Canal-based trade flow. Although water levels are improving, maintenance work in May at the Panama Canal Gatun locks will reduce capacity by 3 transit slots May 7^th through 15^thbefore increasing total transit capacity from 24 to 32 slots. Furthermore, the potential strike of the International Longshore and Warehouse Union (ILWU) anticipated later in 2024 could accelerate the redirection of the one million TEUs that shifted from the West Coast ports during the pandemic. Container volume in April at top East Coast ports was up slightly while top Gulf Coast Ports were slightly down. With exception to Norfolk, VA, top East and Gulf Coast port transit times were down. 
• Middle East conflict. Attacks on shipping in the Red Sea by Houthis from Yemen are continuing to influence carriers to forego the Suez Canal, extending transit times, and negatively impacting global shipping capacity. The impact of diversions away from the conflict is still minimal on volumes or transit delays for the East and Gulf Coast ports.  
• ILA/USMX contract negotiation. A potential strike on the South Atlantic and Gulf Coasts could disrupt U.S. container imports later in 2024. Given the current Panama Canal situation, shifting volume to West Coast ports could be extremely challenging or significantly extend transit times. No progress was cited in March. 

April 2024 U.S. container import volumes were up compared to March 2024. Port transit times continued to improve in April compared to March delays. Although, it is unclear where volume from the distressed port of Baltimore is being directed, East coast ports are expected to capture some of the volume as shipments find their way back to shore. Ongoing issues in Panama and the Middle East are creating pressure on global supply chains that could cause disruptions throughout 2024. Descartes will continue to highlight key Descartes Datamyne, U.S. government and industry data in the coming months to provide insight into global shipping.  

Short-term: 

• Monitor East Coast port volumes to further assess displaced volumes resulting from the closure of the Port of Baltimore. 
• Track the Panama Canal situation as Gatun locks undergo maintenance work, restricting transit capacity, while anticipating increased capacity later in the month. 
• Track the Middle East conflict as carriers have begun to divert shipping around Africa, and this will impact shipping capacity and timeliness. 
• Track the spread of COVID variants to determine when they will hit critical parts of the supply chain, especially in China. 
• Track ocean shipments and carrier performance as there is still a considerable gap between original ETAs and actual ones.   
• Evaluate the impact of inflation and the Russia/Ukraine and Israel/Hamas conflicts on logistics costs and capacity constraints. Ensure that key trading partners are not on sanctions lists.  
• Evaluate the potential impact of an ILA strike in October 2024 on South Atlantic and Gulf Coast ports to determine alternate ports or trade lanes. 

Near-term:  

• For companies importing from Asia, reevaluate trade that was moved away from West Coast ports. 
• For companies that have cargo moving through the Suez Canal, evaluate the impact of extended rerouting. 

Long-term:  

• Evaluate supplier and factory location density to mitigate reliance on over-taxed trade lanes and regions of the globe that have the potential for conflict. Density creates economy of scale but also risk, and the pandemic and subsequent logistics capacity crisis highlights the downside. Conflicts do not happen “overnight” so now is the time to address this potentially business disrupting issue.  

Note: This report uses the initial compiled release of U.S. Customs and Border Protection (CBP) data and is subject to revision later by CBP. The revised data can be seen in Descartes Datamyne.