Ocean peak season is a crucial period for companies preparing to import freight ahead of the holiday shopping season. Traditionally spanning August to October, peak season has, in recent years, begun as early as June. This year, U.S. peak season has been marked by challenges, including tariffs, port strikes, and hurricanes.
Despite these disruptions, companies have largely managed to avoid significant impacts on holiday inventory levels, according to statistics outlined by project44.
Key takeaways:
- China remains a dominant player in global manufacturing, accounting for approximately 40.7% of all U.S. imports. From June to October this year, project44 data shows China making up 39% of tracked imports, representing a nearly 6% increase over the same period last year. This trend contrasts with the broader industry shift toward diversified manufacturing, which gained momentum following the COVID-19 lockdowns and associated supply chain disruptions.
- One explanation for the increase in imports from China is the introduction of new tariffs against Chinese imports. These tariffs went into effect in September, which meant some shippers pulled forward orders to avoid the additional tariffs on imports from China.
- Another notable shift is the nearly 4% decrease in import volume from Vietnam. In 2023, Vietnam accounted for 16% of peak season volume, following a steady upward trend since the early 2000s. This year, however, Vietnam's share has declined slightly for peak season. This decrease does not necessarily indicate reduced imports from Vietnam; it is likely offset by increased post-peak imports from China pulled forward due to the tariffs.
- Overall, loading port activity has remained stable year-over-year, with noticeable increases at Yantian, Shanghai, and Ningbo, China. Together, these ports account for nearly 30% of exports tracked by project44 from June through October, reflecting the rise in imports from China.
- Export dwell times at major loading ports for United States have remained relatively stable. Yantian, China recorded the longest median dwell at around seven days, while Vung Tau, Vietnam had the shortest at approximately two days.
- The Port of Long Beach saw the most significant increase in port of discharge this year, with volume up by 3% over 2023, now accounting for 23% of peak season shipments. When combined with Los Angeles, the Los Angeles/Long Beach area handles nearly 40% of U.S. imports from June through October. This trend reflects a return of import volumes to the West Coast after a period of increased activity at East Coast ports.
- In terms of dwell times, the ports of Los Angeles and Long Beach continue to experience the highest median import dwell times, despite challenges such as East Coast weather events and strikes.
“The 2024 ocean peak season has unfolded with some notable shifts in import patterns, influenced by factors such as tariffs, port strikes, and global trade dynamics. Despite these challenges, companies have maintained steady holiday inventory levels, with import volumes from China seeing a marked increase and Vietnamese volumes slightly declining. U.S. ports experienced moderate shifts in activity, with a renewed preference for West Coast ports, especially Long Beach, over East Coast options. Dwell times largely remained stable across major ports, signaling resilience within the supply chain despite external pressures. This season’s data suggests that while global logistics continue to evolve, supply chains are adapting effectively to maintain stability through peak demand periods,” according to project44.
