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8/9/2024
Inbound cargo volume at the nation’s major ports could reach a near-record surge this month as retailers bring in merchandise ahead of a potential strike at East and Gulf coast ports in fall, according to the latest Global Port Tracker report issued by the National Retail Federation (NRF) and Hackett Associates.
The report forecasts that import volume in August will soar 19.2% year over year to 2.34 million 20-foot equivalent units (TEUs).
The contract between the International Longshoremen’s Association (ILA) and United States Maritime Alliance covering East and Gulf coast ports is set to expire on Sept. 30. Negotiations have broken down and the ILA has threatened to issue a strike if a new contract isn’t reached, according to the NRF, which has continued to urge both parties to return to the negotiating table. Rising freight rates have also prompted importers to move their goods earlier.
“Many retailers have taken precautions, including shifting cargo to West Coast ports. We hope to see both sides resolve this issue before the current contract expires because retailers and the economy cannot afford to see a prolonged strike,” said NRF Vice President for Supply Chain and Customs Policy Jonathan Gold in a press release. “This comes on top of ongoing disruption issues, including the attacks on commercial vessels in the Red Sea.”
NRF and Hackett Associates calculate that the import shift has pushed West Coast ports’ share of cargo to more than 50% for the first time in over three years.
U.S. ports covered by Global Port Tracker handled 2.16 million TEUs in June, up 3.6% from May’s level and 17.7% from June 2023’s mark. That brought the first-half total to 12.1 million TEUs, up 15% compared with the same 2023 period.
Ports monitored by the report haven’t yet reported July import figures, but Global Port Tracker projected that volume shot up 22.1% year over year to 2.34 million TEUs.
Global Port Tracker projects that import volume will increase 6.5% in September to 2.16 million TEUs; inch up 1.7% in October to 2.09 million TEUs; rise 4.4% in November to 1.98 million TEUs; and ratchet up 3.5% in December to 1.94 million TEUs.