Walmart, Target, and Shein retailers started back-to school sales early in order to prevent Amazon.com Prime Day from stealing U.S. sales for backpacks and computers. This helped advance the peak ocean-shipping season by two-months and increase already high freight rates.

Stephanie Loomis is Rhenus Logistics’ head of ocean freight in the Americas. She said: "It appears that this year July is actually the peak of the (season) instead of the beginning." About half of U.S. imports are made by retailers. Ocean shipping accounts for about 80% global trade. Since late last year when Houthi rebels attacked the Suez Canal trade shortcut, cargo ships have been moving faster than usual. Denmark's A.P. Moller-Maersk is a leading container shipping company. On Wednesday, it said that disruptions in the Red Sea have affected its entire global network, not just those trade routes from Europe and Far East. Nike executives said that they imported athletic shoes and apparel to the U.S. during the quarter of March-May, which they had originally planned for June-August. Matt Priest, CEO of the Footwear Distributors and Retailers of America industry group, says that members of the group, which accounts for 95% of U.S. shoe sales, have also accelerated their shipments. Industry experts say that some importers also have accelerated timelines in order to avoid higher costs due to new tariffs on electric-vehicle battery and computer chip imports, or to avoid disruptions during dockworker labor negotiations on the U.S. East Coast. According to Drewry World Container Index, the early surge in demand pushed the cost of shipping a standard 40 foot (12 metre) container from Shanghai to New York up to almost $10,000. This is double what it was back in February.

This has led to fears that a prolonged period of high rates could lead to further price increases for Americans who are already feeling the pinch from inflation.

Halloween in July

According to Descartes Systems Group, a supply-chain software company, U.S. container exports increased 11.9% and 10.4% respectively in May and June. These increases were due to major retailers scheduling back-to school sales earlier in order to compete with Amazon's Prime Day on Tuesday and Wednesday of this week. The e-commerce company said that it was their biggest event ever. Amazon encourages its sellers position inventory at least one month before a sale event.

Gene Seroka is the executive director of Los Angeles' busiest port. He said, "Now, we're starting to see fall fashion, Halloween, and end-of-year holiday products moving along the supply chain." Some of these goods are already available in stores. Home Depot will begin selling outdoor Halloween decor this week, including "Skelly", a 12-foot robotic skeleton. Seroka anticipates robust imports for July. It notes that 63 ships are on their way to the Los Angeles/Long Beach port complex compared to 52-55 typically. Priest says logistics executives are attempting to prevent a repetition of supply-chain disruptions caused by former President Trump’s China tariffs and pandemic, as well as the Red Sea attack. Priest, referring specifically to post-traumatic disorder, said that the last few years had created PTSD. Early peak ocean shipping may also bring an end to the soaring prices that are causing some shippers to fear a return to record container freight rates.

Judah Levine is the head of research for Freightos. This international freight booking platform and payment system. Reporting by Lisa Baertlein, Los Angeles; Arriana McCLymore, Siddharth Cavale and Rod Nickel in New York. Editing by Richard Valdmanis & Rod Nickel.