The global shipping crisis rages on, and with it comes a continued spike in retail imports at major U.S. ports.
According to the latest update from the National Retail Federation (NRF) and Hackett Associates’ monthly Global Port Tracker, this spring has seen record numbers of freight containers making their way through the system. The mass quantities of freight — including toys and games — are expected to continue as retailers and manufacturers bring in seasonal merchandise early in an effort to mitigate future cost increases and more supply chain issues that could loom on the horizon.
“Retailers are importing record amounts of merchandise to meet consumer demand, but they also have an incentive to stock up before inflation can drive costs higher,” says NRF Vice President for Supply Chain and Customs Policy Jonathan Gold. “Whether it’s freight costs or the wholesale cost of merchandise, [the] money retailers save is money that can be used to hold down prices for their customers during a time of inflation. In addition, retailers are preparing for any potential disruptions because of the West Coast port labor negotiations, which are set to begin next week.”
The report notes that consumer spending is outpacing income growth.
While final numbers for April have not yet emerged, the Global Port Tracker reports that U.S. ports handed 2.34 million Twenty-Foot Equivalent Units (TEU), which sets a record for the highest number of containers important in a single month since the NRF began tracking imports 20 years ago.
While the overall U.S. retail sales numbers for the toy industry have yet to emerge for the first four months of 2022, the Q1 earnings season has proven to be a promising sign for the months ahead with strong growth from all major toymakers.
