Import activity at West Coast ports continues to anticipate robust consumer demand despite rising prices and the first hint of a pause caused by the resurgence in the coronavirus at the end of the year.
Seaports in Los Angeles, Long Beach, Oakland and Seattle/Tacoma handled 22.2% more containers in December 2020 than were processed in December 2019. That’s a positive sign for the economy and a sign of what looks to be a successful transition to digital shopping, particularly at a time when the pandemic is raging.
The recent flattening of what looked to be an improving trend in exports is perhaps a more concrete assessment of the foreign demand for U.S. goods than is the optimistic case presented by imports.
The number of loaded export containers processed by West Coast seaports declined by 3.5% in December relative to the year before. That’s the 23rd consecutive month of negative export growth since January 2019, and that was preceded by nearly two years of decelerating growth.
Attempts to bandage the damage to U.S. trade over the past four years will not be as simple as the boosting consumer demand for imports. Reestablishing lost market share will take time, and there are intellectual property and security concerns to consider as well.
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