July 2024 U.S. Container Imports Break 2.5M TEUs 

The robust growth of U.S. container import volumes in 2024 continued, with July reaching the third highest monthly volume on record. July’s volume of 2,556,180 twenty-foot equivalent units (TEUs) was eclipsed by the first- and second-highest volumes in May 2022 (2,622,465 TEUs) and March 2022 (2,558,021 TEUs), respectively. Despite the increased volume in July, port transit time delays showed little impact with largely negligible improvement or decline. July 2024 volumes increased 11.2% over June 2024 totals, which is consistent with the rise that occurs in peak season in non-pandemic years.  

U.S. imports from China set a record high in July of 1,022,913 TEUs, exceeding the previous record set in August 2022 by 19,188 TEUs. Chinese imports in July represented a 14.7% increase over June totals and a 19.9% increase over July 2023. August’s update of logistics metrics monitored by Descartes reinforces the strength of U.S. container imports since the start of 2024. Despite strong volumes, global supply chain volatility is still expected during the second half of the year because of the Middle East conflict, stalled labor negotiations at U.S. South Atlantic and Gulf Coast ports, and reduced U.S. port capacity as container volumes slowly return to the Port of Baltimore since reopening in June.  

July 2024 U.S. container import volumes increased from June 2024, growing 11.2% to 2,556,180 twenty-foot equivalent units (TEUs). July volumes represent a 26-month high since the all-time high set in May 2022. This also marks the first time in 22 months that volumes have been above the 2.4 million TEU level that created port congestion and delays during the pandemic years. Versus July 2023, TEU import volume was up 16.8% year-over-year (see Figure 1) and 16.3% versus pre-pandemic July 2019. The growth in import volume over the first seven months of 2024 is 15.6% higher than the same period in 2019. 

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

Source: Descartes Datamyne™

The July 2024 volume increase over June 2024 is consistent with the rise in peak ocean shipping season in non-pandemic years. July 2024 volumes were also the highest of any July totals in the past six years, surpassing July 2022 imports by 25,274 TEUs.

Figure 2: June to July U.S. Container Import Volume Comparison

Source: Descartes Datamyne™ 

For the top 10 U.S. ports, container import volume in July 2024 increased 236,884 TEUs (+12.0%) versus June 2024 (see Figure 3). The ports of Los Angeles (up 69,476 TEUs) and New York/New Jersey (up 58,258 TEUs) experienced the greatest container volume increases from June. The ports of Houston (down 174 TEUs) and Oakland (down 652 TEUs) were the only ports that recorded a month-over-month decline, although these declines were negligible.

Figure 3: June 2024 to July 2024 Comparison of Import Volumes at Top 10 U.S. Ports

Source: Descartes Datamyne™ 

In July 2024, U.S. imports from China recorded a record high of 1,022,913 TEUs. Compared to the previous high set in August 2022 of 1,003,725 TEUs, July imports are up 1.9% (19,188 TEUs)(see Figure 4). July 2024 volumes were up 14.7% over June while recording an impressive 25% increase over July 2023. The top two commodity codes (HS-2s) continued to be consumer-oriented goods such as HS-94 (Furniture, Bedding, etc.) and HS-39 (Plastics and Articles Thereof). China represented 40% of the total U.S. container imports in July, an increase of 1.2% from June but still down 1.5% from the high of 41.5% in February 2022.

Figure 4: July 2023 – July 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 July 2024 increased 198,841 TEUs, an 11.7% increase from June (see Figure 5). China, Vietnam, and Hong Kong experienced the most volume growth, increasing 131,457 TEUs, 24,650 TEUs, and 18,741 TEUs, respectively. Imports from India experienced the greatest volume decrease, declining 8,945 TEUs. 

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

Source: Descartes Datamyne

In July 2024, container import volume share at West Coast ports grew from June as East and Gulf Coast ports remained flat. Comparing the top five West Coast ports to the top five East and Gulf Coast ports in July 2024 to June 2024 shows that total container import volume at the top East and Gulf Coast ports decreased slightly to 41.3% (down 0.1%) of total container import volume, and the top West Coast ports increased slightly to 45.5% (up 0.9%). Compared to smaller ports, the share at the top 10 ports in June 2024 grew slightly to 86.8% (up 0.7%) (see Figure 6).

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

Source: Descartes Datamyne

For the top 10 U.S. ports, overall transit time delays in July decreased from June, despite July TEU volumes reaching levels that have stressed ports and inland logistics in the past. Port transit delays at West Coast and East Coast ports were mixed in July 2024, with some ports seeing marginal improvements and others seeing marginally longer delays. The East Coast port of Charleston saw the greatest improvement, reducing delays by 2.9 days while the West Coast port of Tacoma reported the largest increase, with delays rising by 1 day compared to June (see Figure 7).

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

Recent rainfall has restored the Panama Canal to near-full operating depth. Gatun Lake has reached 84.4 feet, allowing approximately 36 vessels to transit the canal daily starting in September. This improvement follows last year’s severe drought caused by El Niño, which had significantly restricted canal operations. The Panama Canal Authority anticipates water levels to further rise to 86.1 feet by October, ensuring more stable daily transit slots and reducing previous disruptions. 

The attacks and ongoing threats 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. Severe weather at the tip of South Africa in July further disrupted transit through the region. Shipping concerns will likely increase if the Middle East is further destabilized. 

At 211,960 TEUs, July 2024 import volumes at the Gulf Coast ports fell for the second consecutive month. Compared to June, imports were down 2.3% (see Figure 8). Port transit time at the Gulf Coast ports remained stable in July.

Figure 8: July 2023 to June 2024 U.S. Gulf Coast Container Imports 

Source: Descartes Datamyne™

Following the reopening of the port in June, import volumes still lag behind their historic levels; however, July volumes were approximately four times greater than June totals. While July volumes at the port climbed 17,619 TEUs, they were still down 61.4% over July 2023 at 45,666 TEUs. In a recent interview, Johnathan Daniels, the port’s administrator, stated that he believes the port will recover by early 2025. 

The potential severity of trade disruption stemming from the expiration of the ILA and 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 South Atlantic and Gulf Coast 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.

U.S. container import volume broke 2.5M TEUs in July 2024, hitting a 26-month high and the third highest monthly volume on record. The economy continues to exceed expectations, however, elevated container import volumes, the ongoing conflict in the Middle East, pending ILA contract negotiations, and recovering trade flows at the Port of Baltimore point to potential trade 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. With July U.S. container import volumes eclipsing 2.5M TEUs, ports may be beginning to struggle.  
• 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. July 2024 transit delay changes were mixed at both West Coast and East Coast ports, with no clear indication of improving or declining performance.  
• The economy. The U.S. is an import-driven economy, so economic health is an important indicator of container import volumes. On July 25, the U.S. Bureau of Economic Analysis (BEA) announced its estimate for economic growth in the second quarter of 2024, reporting a growth rate of 2.8%. Following the July 31 Federal Open Market Committee (FOMC) meeting, the Federal Reserve borrowing rate remained at 5.3% to slow inflation which reduced in June by 0.1% from May’s reported 3.3%. According to the Bureau of Labor Statistics, the unemployment rate grew by 0.2% to 4.3% in July while employers added just 114,000 jobs—significantly below the average monthly gain of 215,000 over the prior 12 months. 
• Middle East conflict. Houthi attacks are continuing to influence carriers to forego the Suez Canal, extending transit times around the Cape of Good Hope—where severe sea conditions in July have exacerbated global shipping disruptions. The impact of diversions away from the conflict and weather-related disruptions is still minimal on volumes or transit delays for East and Gulf Coast ports.   
• ILA/USMX contract negotiation. A potential strike at South Atlantic and Gulf Coast ports could disrupt U.S. container imports later in 2024. 

July 2024 U.S. container import volumes were up significantly compared to June 2024 and the same month last year. Port transit delay times demonstrated no clear indication of growing worse, despite July’s considerably higher import volume. Concerns surrounding the Panama Canal have eased as heavy rain has enabled the port to restore normal operating daily transit capacity. Ongoing conflict in the Middle East is creating pressure on global supply chains that could cause disruptions throughout 2024, and stalled negotiations between the ILA and USMX could fuel disruption at South Atlantic and Gulf Coast ports later in the year. 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: 

• 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. 
• Monitor East Coast port volumes to assess the recovery of the Port of Baltimore. 
• Track the Middle East conflict as carriers divert shipping around Africa, impacting shipping capacity and timeliness.
• 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. 

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 caused by Middle East conflicts. 

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.