U.S. ports busier than ever as East-West shipping rebounds
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The pandemic and trade tensions slowed global trade to a crawl earlier this year. So it may be kind of surprising to learn that in the last few months, imports to the U.S. have been surging. A report out today from the National Retail Federation states import volumes may have hit record levels in August.
This year, the Port of Los Angeles went from handling the lowest container volumes it had seen in over a decade to taking in near-record levels of imports.
“August will be one of the best months we’ve had in our port’s history,” said Gene Seroka, the port’s executive director. “And September, right now, is looking to be looking very strong as well, from our forward indications.”
That’s because supply chains have started to come back. Big-box retailers are restocking shelves. Plus online shopping jumped over 30% in the second quarter.
“So those inventories have to be replenished,” Seroka said.
People have also been buying a lot of bulky items to set up home offices — desks, chairs and computer monitors. And that filled a lot of shipping containers, too.
Jonathan Gold follows supply chain policy for the National Retail Federation. He said this is also the time of year when retailers start preparing for the holiday season, when, during normal times, we buy each other a lot of stuff.
“Whether it’s apparel, consumer electronics, furniture, home goods, toys: all that comes from the Asia market,” Gold said.
But these are not normal times.
Dale Rogers, a professor of supply chain management at Arizona State University, said by building up their inventories, stores are betting that the consumer will feel comfortable buying things this holiday season.
“There’s a belief that the consumer is going to be there, ” Rogers said. “But they’re not necessarily there yet.”
Still, consumers have fewer ways to spend their money this year. Travel is still difficult, and restaurants have limited capacity.
Eswar Prasad, a professor of trade policy at Cornell University, said for those who have a holiday budget, “people have to spend their money on something.”
Prasad said when we can’t spend much on experiences and other services, we’re likely to spend more on goods.
COVID-19 Economy FAQs
What does the unemployment picture look like?
It depends on where you live. The national unemployment rate has fallen from nearly 15% in April down to 8.4% percent last month. That number, however, masks some big differences in how states are recovering from the huge job losses resulting from the pandemic. Nevada, Hawaii, California and New York have unemployment rates ranging from 11% to more than 13%. Unemployment rates in Idaho, Nebraska, South Dakota and Vermont have now fallen below 5%.
Will it work to fine people who refuse to wear a mask?
Travelers in the New York City transit system are subject to $50 fines for not wearing masks. It’s one of many jurisdictions imposing financial penalties: It’s $220 in Singapore, $130 in the United Kingdom and a whopping $400 in Glendale, California. And losses loom larger than gains, behavioral scientists say. So that principle suggests that for policymakers trying to nudge people’s public behavior, it may be better to take away than to give.
How are restaurants recovering?
Nearly 100,000 restaurants are closed either permanently or for the long term — nearly 1 in 6, according to a new survey by the National Restaurant Association. Almost 4.5 million jobs still haven’t come back. Some restaurants have been able to get by on innovation, focusing on delivery, selling meal or cocktail kits, dining outside — though that option that will disappear in northern states as temperatures fall. But however you slice it, one analyst said, the United States will end the year with fewer restaurants than it began with. And it’s the larger chains that are more likely to survive.
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