We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Consumer spending drives V-shaped recovery from pandemic recession, Drewry says

Consumer spending drives V-shaped recovery from pandemic recession, Drewry says

E-commerce shopping soars as buyers find more cash in their pockets after shutdowns cancel costs of commuting, vacations, and entertainment.

drewry containers chart
October 16, 2020
Ben Ames
No Comments

Buoyed by red-hot e-commerce shopping, the volume of shipping containers moving through world container ports during the second quarter registered a far smaller decrease than predicted, dropping about 8% compared to the same period last year as opposed to the expected pandemic slump of 16%, the logistics consultancy Drewry Shipping Consultants Ltd. said today.

The results “confounded” expectations for the second quarter, and most likely the third quarter as well, the U.K.-based firm said in its latest “Container Forecaster” report, published at the end of September. “Trade always seems to find a way, even in the most inhospitable conditions,” Drewry wrote in the report. “Not quite a full recovery then, but first half port throughput performance was sufficiently good enough for us to upgrade the annual global forecast for this year to minus 3.3%, up from minus 7.3% as given in June.”

According to Drewry, the force behind the surprisingly strong trade statistic was consumer spending, as shoppers stuck at home during coronavirus pandemic shutdowns suddenly found their pockets full of money, due to “involuntary savings” gained from restrictions in commuting, vacations, entertainment, and fuel costs.

“We, along with most analysts, seriously under-estimated the addiction of Western nations to consumption, particularly when shielded from some of the harsh reality by huge government safety nets,” the Drewry report said. “We assumed wrongly that populations, fearing long-term job security, would hunker down and limit non-essential purchases. It discounted the resourcefulness of human spirit when faced with adversity and, perhaps more tellingly, the untapped potential of e-commerce.”

The Drewry report was backed up by a similar finding from Cass Information Systems Inc., whose “Cass Transportation Index Report” for September found that freight continues a strong rebound as the pandemic continues, with shipping volumes improving 7% from August to September and registering only 1.8% below last year's levels. Furthermore, Cass said it expects more positive news in the coming months due to that positive trajectory, lean inventories that need replenishing, and growing consumer confidence.

A third report released today provided deeper detail on the e-commerce boom, as the National Retail Federation (NRF) said that a strong rebound in apparel purchases led a continuing “V-shaped recovery” from the pandemic recession as retail sales accelerated their rate of growth in September and marked the fourth straight month of year-over-year gains.

Similar to the other research, the NRF pointed to a rise in shoppers’ spending money driven by changes in work and recreation patterns. “Retail sales are continuing to build on the momentum we’ve seen through the summer and have been boosted by an improving labor market, a rebound in consumer confidence, and elevated savings,” NRF Chief Economist Jack Kleinhenz said in a release.

“A significant number of people remain unemployed, but more are going back to work and that makes them confident about spending,” Kleinhenz said. “September retail sales reflect the support of government measures and elevated savings that is being spent now that consumers are shopping again. With less spending on personal services such as travel and entertainment outside the home, some of that money is shifting to retail cash registers. All in all, these numbers and other economic data show the nation’s economy remains on its recovery path.”

By the numbers, U.S. Census Bureau statistics showed that overall retail sales in September were up 1.9% seasonally adjusted from August and up 5.4% year-over-year. That was more than triple the 0.6% month-over-month increase and almost double the 2.8% year-over-year increase in August. Likewise, NRF’s own calculation of retail sales – which excludes automobile dealers, gasoline stations, and restaurants in order to focus on core retail – showed September was up 1.3% seasonally adjusted from August and up 12% unadjusted year-over-year. The year-over-year gain was more than double the 5.7% year-over-year increase in August.

#Retail sales growth speeds up as September marks fourth month of gains. https://t.co/FEVJIBXBCd pic.twitter.com/SUMTeOXbVo

— National Retail Federation (@NRFnews) October 16, 2020
Trucking Maritime & Ocean Omnichannel
KEYWORDS Cass Information Systems Inc. Drewry Shipping Consultants National Retail Federation
  • Related Articles

    Ports continue to rebound from spring lows

    Peak season to test retooled supply chains

    Contactless shopping, free returns, and a smooth delivery process rule the day this holiday season

Benames
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.

Recent Articles by Ben Ames

Walmart launches plan to build micro-DCs inside dozens of retail stores

UPS sells off its LTL and truckload arm for $800 million

Biden Administration names Oberman to chair Surface Transportation Board

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • Biden names dozens of senior leaders to DOT, including FMCSA and FRA

  • Outlook 2021: What’s in store for logistics supply chain?

  • Cushman & Wakefield Brokers Sale of 170 Acres plus Lease for 1MSF Build-to-Suit for Home Improvement Retailer in Commerce City, CO.

  • Thriving in the long haul: interview with Colin Yankee

Now Playing on DCV-TV

Sick agv demo thumbnail

Optimize Load Handling Tasks with Industrial Mobile Robots

DCV-TV 4: Viewer Contributed
Intelligent sensors detect the presence of goods, check for empty shelves, or the correct alignment on the mobile platform towards the freight. The solutions range from simple detection sensors, thorough measuring devices, and 2D LiDAR sensors.

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing