Despite forecasts of slowed growth globally and in the United States, carriers expect a rebound in US imports in the second half of the year.
During a trade conference held in Newport, Rhode Island, MSC’s US Executive Vice President, Allen Clifford, said that the company intends to add more vessels serving US ports. According to a report by the Journal of Commerce (JOC), Clifford anticipates “a return to seasonal shipping patterns in August and September could follow a mid-summer lull in import demand.”
Speaking at the conference, Clifford said, “In the second half of the year, there will be an uptick in cargo.” However, he believes this uptick "will not equal what it was in 2021 and 2022.”
Nevertheless, he highlighted, “We’re preparing for [a rebound] with our vessels, chassis, containers and everything else."
Similarly, Eric Hsieh, President of Taiwan's major shipping liner Evergreen, expressed an optimistic outlook for the second quarter. Commenting on the carrier’s 2022 financial results, Hsieh said, “The shipping industry might face a difficult off-season in the first quarter of 2023, but improvements could be recorded in the second quarter, with a more robust market recovery potentially materializing in the second half of the year.”
He further noted, “Freight levels have rebounded over the past three weeks, and cargo volumes have increased. We expect the usual peak period in Q3 will materialise, and if the Russia-Ukraine war ends, it will catalyse consumption.”
One of the reasons behind this positive view could be retailers’ wish to boost consumption among their customers. Industry experts believe retail shippers intend to launch new products to attract shoppers. They expect an increase in orders in April and May, which in turn would increase vessel capacity utilisation.
In the meantime, data released by research firm Descartes reflected signs of a rebound in US imports in March, where imports reached nearly 1,850,00 TEU marking a 6.9% increase from February. Interestingly, the rebound was not necessarily driven by increased cargo flow between China and the US. Descartes reported, that March imports from China declined by around 46,500 TEU month-on-month, but they were counterbalanced by imports increase from Thailand, South Korea and Japan.
