US goods exports recovery in September supports container demand: Commerce

New York — An increase in US goods exports in September more than made up for a drop in imports last month, keeping underlying demand for containers strong, US Commerce Department data Oct. 28.

The US international trade deficit narrowed in September to $79.4 billion from $83.1 billion in August. The total value of exported goods in September rose by $3.2 billion to $122 billion, while imports fell by $500 million to $201.4 billion last month.

"Global trade is picking up as the dollar weakens," investment bank Jefferies said in a research note. "However, it is being accompanied by a sharp rise in ocean container freight charges and spot haulage/intermodal costs. With global trade resurging, inventory restocking and a surge in Christmas orders, transport and shipment costs are squeezing up."

Platts Container Index, a weighted average of 12 container rate assessments covering major shipping routes around the world, increased by 4.4% to $1,662.75/FEU during September.

Trade volumes still have some way to go before returning to levels from one year ago. US imports of consumer goods in September were up by 2% year on year at $55.6 billion, while auto imports increase 0.7% year on year.

But most major US export sectors were down sharply in September on a year-on-year basis. Capital goods fell by 16.3%, autos dropped 6.8% and consumer goods were down 10.2%.

"It will take several more quarters (in some cases, years) before regaining pre-COVID levels of activity. Even then, the path of output is likely to be lower than before the crisis," S&P Global Ratings said in a research note.