U.S. companies are stocking up on orders from China in order to get ahead of new tariffs, and shipping and logistics businesses are preparing for increased volume prior to holiday season, The Wall Street Journal reports.
The rush to get goods to the U.S. has brought an early peak season for seaports, the Journal reports. Additional costs for importers and distribution complications could grow across supply chains in the coming months as more orders are being placed.
According to the Commerce Department, overall goods imports to the U.S. rose 10.3 percent in the third quarter. Private inventories reportedly contributed more than 2 percent in the overall growth rate, driving strong results at many cargo-handling operations.
According to The Wall Street Journal, companies have had to bring goods in without a clear view on the demand that comes with shipping later, pushing more goods in crowded warehouses. Currently, the rate of available warehouse space fell for the 33rd straight quarter to just 7.1 percent.
Some operators have said that customers are starting to adjust their global supply chains in response to new potential tariffs, however, Trump is expected to meet with Chinese President, Xi Jinping, in November to discuss trade disputes.
Until that meeting happens, shipping lines that work trans-Pacific trade lanes are maintaining their capacity during what used to be slower weeks of the year, the Journal reports. Carriers are also adding extra container-handling equipment to cope with the additional volumes.