Report Finds US Container Imports Could Approach Monthly Record

 

The threat of a strike by longshore workers at U.S. ports could lead to a surge in import container traffic, potentially nearing record monthly levels as retailers rush to bring holiday goods ashore. Following an early peak in June, driven by the end-of-year holiday shipping season, the latest Global Port Tracker report, from the National Retail Federation (NRF) and Hackett Associates, suggests that import volumes may spike again in August.

This anticipated increase comes as retailers aim to avoid potential disruptions from a strike at East Coast and Gulf Coast ports. The contract between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance is set to expire on September 30, and negotiations have stalled. With the ILA threatening a walkout if a new contract isn’t reached, many retailers are taking precautions by shipping goods earlier and diverting cargo to West Coast ports.

Jonathan Gold, NRF’s vice president for supply chain and Customs policy, emphasized the industry’s concern, stating, “Retailers are worried about the possibility of a strike because contract talks have stalled. Many have already started earlier shipping and rerouting to the West Coast. A prolonged strike would be detrimental to both retailers and the economy.”

The June peak in container traffic occurred despite ongoing global supply chain challenges, including disruptions from attacks on commercial vessels in the Red Sea, equipment shortages, and congestion at Asian ports. These factors have contributed to longer sailing times and increased shipping costs.

Hackett Associates founder Ben Hackett noted that importers are building inventories and shifting cargo to the West Coast as a precaution against labor disruptions. This shift has resulted in the West Coast handling over 50% of tracked cargo for the first time in more than three years. The NRF continues to urge both sides to return to negotiations to avoid further complications.

 

Source:

https://www.freightwaves.com/news/report-finds-us-container-imports-could-approach-monthly-record