New York—The US trade deficit in goods widened 5.5% year on year to a new record in November at $84.82 billion as a lack of containers available for exporters contributed to an unequal growth rate compared with import volumes.
US goods exports were valued at $127.22 billion in November, up 0.8% from the previous month, but down 6.6% from November 2019, according to US Commerce Department data.US goods imports in November totaled $212.04 billion as restocking continued ahead of end-of-year holidays, up 2.6% from October and 5.5% from the same month a year ago.
The overall surge in import volumes from Asia in the second half of 2020, coinciding with a broad shift in consumer spending on goods instead of services amid the coronavirus pandemic, has overwhelmed ports particularly on the Pacific Coast, and led to a pile-up of containers.
Shipping lines responded by recycling the equipment as fast as possible back to Asia, where container spot rates have escalated to multi-year highs, inadvertently cutting off some US exporters from overseas markets.
US Federal Maritime Commissioners Carl Bentzel and Daniel Maffei sent a letter to the World Shipping Council earlier this month expressing their concern that shipowners were refusing to carry US export cargoes in their rush to reposition containers in Asia, but it was unclear if the government body would take regulatory action.
"It is imperative that we strive for a balanced trade to keep our supply chain fully effective and efficient while maintaining vital export opportunities for the US agriculture and manufacturing bases," the commissioners wrote.
Platts Container Rate 13—North Asia to West Coast North America—jumped 188% from a year ago to $3,900/FEU Dec. 29 amid a shortage of containers and carrying capacity in Asia. Backhaul rates from the US to Asia climbed 71% to $600/FEU over the same period.
