Surge in Containerized U.S. Imports from China Spurred by U.S. Stimulus

NEWARK, N.J., July 13 /PRNewswire/ -- PIERS Global Intelligence Solutions trade data indicates that the second U.S. economic stimulus package for first-time home buyers led to a 20 percent increase of containerized U.S. imports from China during May, an 8.1 percent in April and an overall 12.2 percent year-to-date.  New homeowners purchasing furniture caused an 18 percent surge in furniture imports, but the increase is not expected to last.  

Today, China is importing and exporting goods at a record pace.  Overall container traffic moving through Chinese ports soared by 21.9 percent in May from a year earlier, hitting an all-time monthly high of 12.44 million TEUs.  Cargo backlogs and rising freight rates are heating up, primarily because of tight capacity, indicative of a peak season arriving two months early.  

According to Mario Moreno, PIERS Economist, "the tax credit for first-time home buyers appears to be the reason for the early increase in traffic.  Homeowners seeking to furnish their new residence are stimulating an increase in the furniture category."  

The data is consistent with the timing of the U.S. government incentive.  To qualify, homebuyers had to sign a purchase contract by April 30 and close the deal by June 30.  As a result, new home sales surged by 14.8 percent in April to an annual rate of 504,000, while plunging 33 percent in May.    

Imports of furniture from China increased in May to 114,000 TEUS up by 17,378 from the previous year.  June statistics are likely to reveal this trend of increased inbound shipments for furniture.  Even imports of blankets, sheets and towels are showing a significant increase of 32.8 percent over 2009.    

(Photo: http://photos.prnewswire.com/prnh/20100713/NY34017 )

(Photo: http://www.newscom.com/cgi-bin/prnh/20100713/NY34017 )

This upward trend in furniture imports is likely to reverse.  With unemployment remaining high, credit conditions tight and no new housing stimulus on the horizon, the positive trend is unsustainable for the foreseeable future.

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PIERS is the primary source of U.S. waterborne trade information and a leader in global trade solutions. Launched over 30 years ago by The Journal of Commerce as the Port Import Export Reporting Service, its first venture in electronic information, PIERS quickly became the standard reference on container trade for the maritime industry. A roster of over 6,000 private industry, trade association, and domestic and foreign government clients, representing more than 40 countries, relies on PIERS to translate trade data into meaningful intelligence that guides their global business strategies. For more information visit www.piers.com or call 800-952-3839.

About UBM Global Trade

UBM Global Trade provides proprietary data, news, business intelligence and analytical content supporting commercial maritime, rail, trucking, warehousing and logistics industries worldwide. The company's portfolio of more than 100 online, print and interactive workflow business solutions includes The Journal of Commerce, JoC Events, PIERS Global Intelligence Solutions and an array of international trade and transportation databases and directories. UBM Global Trade, a subsidiary of United Business Media Limited, is headquartered in Newark, N.J., with offices throughout the U.S., and in Canada and Hong Kong. For more information, explore www.ubmglobaltrade.com or call 800-221-5488 (+(+1-973-848-7250 outside the U.S. and Canada).

SOURCE PIERS Global Intelligence Solutions