Monthly inbound cargo volume at major U.S. container ports is expected to approach record levels as retailers expedite shipments ahead of a potential strike at East and Gulf Coast ports, the National Retail Federation (NRF) announced Thursday, according to gCaptain.
“Retailers are concerned by the possibility of a strike at ports on the East and Gulf coasts because contract talks have stalled,” said Jonathan Gold, NRF Vice President for Supply Chain and Customs Policy. “Many retailers have taken precautions, including earlier shipping and shifting cargo to West Coast ports.”
The contract between the International Longshoremen’s Association and the United States Maritime Alliance, covering East Coast and Gulf Coast ports, is set to expire on September 30. With negotiations at an impasse, the ILA has threatened to strike if a new contract is not reached by the deadline. The NRF has continued to urge both parties to return to the negotiating table. Rising freight rates have also prompted importers to ship earlier.
“We hope to see both sides resolve this issue before the current contract expires because retailers and the economy cannot afford a prolonged strike,” said Gold. “This comes on top of ongoing disruption issues, including attacks on commercial vessels in the Red Sea. Vessel diversions have led to increased shipping times and costs, as well as equipment shortages and congestion in Asian ports.”
U.S. ports covered in the NRF’s Global Port Tracker report, produced by Hackett Associates, handled 2.16 million TEU in June, a 3.6% increase from May and a 17.7% increase year over year, bringing the first half of 2024 to 12.1 million TEU, up 15% from the same period in 2023.
“Importers are continuing to grow their inventories and are shifting cargo to the West Coast as a precaution against potential labor disruptions,” Hackett Associates Founder Ben Hackett said. “We calculate that the shift has pushed the West Coast share of cargo we track to above 50% for the first time in over three years.”
While ports have not yet reported July’s numbers, Global Port Tracker projected that volume surged to 2.34 million TEU, up 22.1% year over year and the highest level since the record of 2.4 million TEU set in May 2022. August is also forecasted to total 2.34 million TEU, up 19.2% year over year. Projections for the coming months show more increases in TEU volumes: September at 2.16 million (up 6.5%), October at 2.09 million (up 1.7%), November at 1.98 million (up 4.4%), and December at 1.94 million (up 3.5%), leading to a total of 24.9 million TEU for 2024, up 12.1% from 2023.
These numbers would bring U.S. container imports in 2024 to 24.9 million TEUs, up 12.1% from 2023, marking the third-highest annual U.S. import volumes behind 2022 and 2021.
The import numbers come as NRF forecasts that 2024 retail sales – excluding automobile dealers, gasoline stations, and restaurants to focus on core retail – will grow between 2.5% and 3.5% over 2023.
Source: Port News
