May gain projected at major U.S. ports as dockworkers negotiate new contract

Import volume at the nation’s major ports is projected to increase 3.5 percent in May to 1.44 million 20-foot equivalent units (TEUs) as negotiators prepare to begin talks on a new contract for West Coast dockworkers, according to the monthly "Global Port Tracker" report released yesterday by the National Retail Federation (NRF) and Hackett Associates.

"We're expecting a lot of cargo to move through the ports this summer and we want to make sure there aren’t any supply chain disruptions that would impact the cargo flow," said NRF Vice President for Supply Chain and Customs Policy Jonathan Gold in a press release. "We hope there won’t be any issues, but the sooner labor and management can agree on a new contract, the better it will be for everyone who relies on the West Coast ports."

Representatives of the Pacific Maritime Association and International Longshore and Warehouse Union are scheduled to begin negotiations next week on a new contract to replace one that expires June 30. West Coast ports handle more than two-thirds of U.S. retail container cargo annually, including the bulk of cargo shipped from Asia.

Global Port Tracker estimates April volume — the exact figure isn't yet available — at 1.38 million TEUs, which would represent a 6.1 percent year-over-year increase. In addition to the May forecast, the report projects the following near-term volumes, with anticipated year-over-year gains in parentheses: 1.43 million TEUs in June (5.6 percent); 1.49 million TEUs in July (3 percent); 1.5 million TEUs in August (0.8 percent); and 1.44 million TEUs in September (0.1 percent).

Total volume in the first half is expected to increase 5.1 percent to 8.2 million TEUs versus the same 2013 period, according to Global Port Tracker.