An ongoing surge of retail-related imports had the Port of Charleston handling more cargo in November than in any previous month, but it’s another statistic — an increase in loaded exports — that could be an early sign of a snarled supply chain starting to untangle.
Charleston’s port terminals handled 250,711 containers measured in 20-foot increments during November — a 21 percent increase over the same month a year ago and 1,915 containers better than the previous record set in March.
Imports made up more than half of last month’s cargo tally, as U.S. consumers continued a buying binge on furniture, clothing, electronics and other goods that started during the pandemic and shows no signs of letting up.
“The sustained, robust demand for consumer goods continues to drive record-breaking cargo volumes and retail imports at the Port of Charleston,” Jim Newsome, president and CEO of the State Ports Authority, said in a written statement.
The number of containers loaded with exports bound for foreign countries also increased in November after months of flat or lower year-over-year comparisons. There were 67,639 loaded exports last month — the highest figure since the fiscal year started on July 1.
“It is a good sign to see strong loaded exports in November as we work to have a better balance of imports and exports,” Newsome said. “We are seeing a recovery of basic containerized export commodities, as well as diversions of exports from other gateways where there is more congestion. It is a bit early to know what it signifies long term as the supply chain remains under great strain, but this is a positive trend.”
Charleston’s port matches the national trend of gains in numerous export categories, suggesting that a recovering global economy is beginning to boost demand for U.S. products, according to a report Tuesday by the Commerce Department. Growth in exports helped the U.S. reduce its trade deficit in October, the most recent data available, to $67.1 billion — the lowest figure in six months.
The strong rebound in exports is seen by economists as evidence that global supply chains are starting to recover, and they believe smaller trade deficits this quarter could give a solid boost to overall U.S. economic growth, according to a report by The Associated Press.
The trade deficit report follows another sign that there may be light at the end tunnel — U.S. manufacturing output rose in October to its highest level since March 2019, according to the Federal Reserve. Economists with Wells Fargo called the report “the first sign of a thaw in the supply chain crisis.” But they also warned: “It is way too early to say that things are materially improving, but it is a welcome sign that 2022 could bring with it a return toward stability.”
Empty container exports also continue to show strong growth at Charleston’s port, as shipping lines look to quickly reposition boxes that can be sent to Asia and then filled with U.S.-bound consumer goods. There has been a nearly 21 percent increase in empty boxes leaving Charleston this fiscal year.
The SPA’s inland ports in Greer saw a 28 percent year-over-year increase in container moves in November to 14,384 while the maritime agency’s second inland port in Dillon had 2,245 cargo boxes transferred between trucks and trains. There were 14,600 vehicle exports — primarily BMWs built at the German automaker’s Upstate plant — from Columbus Street Terminal in November.
Charleston’s terminals, which have largely avoided the congestion seen at ports on the West Coast and Savannah, recently experienced a brief backlog of ships anchored off the coast due to a temporarily closed berth and a Thanksgiving holiday labor shortage. All of those vessels — which numbered eight at their highest count — had been cleared as of Dec. 6, more than a week ahead of the SPA’s initial estimate.
Reach David Wren at 843-937-5550 or on Twitter at @David_Wren_
