Cargo imports at major U.S. ports are expected to hit their highest levels in almost a year during August 2023.

U.S. ports are expected to handle 2.03 million TEU during August, a 10.2% year-on-year drop, according to a Global Port Tracker report released by the National Retail Federation (NRF) and Hackett Associates. That would mark the first time U.S. ports have handled over 2 million TEU since October 2022.

After August, U.S. ports are not expected to handle more than 1.99 million TEU through the remainder of 2023. The NRF predicts the U.S. will handle 1.97 million TEU in September, 1.99 million TEU in October and 1.92 million TEU in both November and December.

U.S. ports are projected to handle 22.3 million TEU during 2023, a 12.8% year-on-year decrease. It would also be the second straight year U.S. cargo imports have declined from their annual all-time high of 25.8 million TEU in 2021.

“Port and package-delivery labor negotiations that threatened the supply chain at the beginning of the summer have been resolved and retailers are now focused on preparing for the all-important holiday season,” said Jonathan Gold, NRF vice president for Supply Chain and Customs Policy. “There are always supply challenges to be faced, but holiday merchandise is flowing into the country, and we expect to see a smooth shipping season ahead of the winter holiday shopping season.”

Downward-trending import patterns and shifting supply chains suggest global trade is entering a new era where Western countries and China do more business with their political allies and less with each other, according to The Wall Street Journal. Analysts believe that global trade will grow slightly in 2023 but come up short of yearly average growth rates in 2024 based on these emerging trends.