Retailers starting back-to-school sales early cause early peak in ocean shipping

From Investing.com: 2024-07-19 06:08:30

Retailers like Walmart, Target, and Shein are starting back-to-school sales early to combat Amazon’s Prime Day, causing an early peak in ocean shipping. The shipping industry usually handles 80% of global trade and retailers contribute to half of U.S. container import volumes.

Houthi rebel attacks near the Suez Canal last year forced cargo vessels to detour around Africa, causing goods to move earlier. Major importers like Nike have accelerated shipments to avoid higher costs or disruptions. The off-contract cost of sending a container from Shanghai to New York now nears $10,000.

U.S. container imports grew over 10% in May and June, as retailers raced to prepare for Amazon’s Prime Day. Fall fashion, Halloween, and holiday goods are now moving through the supply chain. Home Depot is already starting to sell its Halloween decor lineup, with more imports expected in July.

The early peak in ocean shipping may lead to a decrease in freight rates after July and August. Some are hopeful for easing demand starting in September. Logistics executives aim to avoid the supply chain disruptions caused by past events like the pandemic and Trump’s tariffs on China.



Read more at Investing.com: Retailers’ early US back-to-school sales hasten peak ocean shipping season By Reuters