Retailers are importing extra merchandise this month ahead of a potential strike at East Coast and Gulf Coast ports this fall, which could push monthly inbound cargo volume at the nation’s major container ports up to a near-record surge, according to the Global Port Tracker report released today by the National Retail Federation (NRF) and Hackett Associates.
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. But the NRF says that negotiations have broken down and the ILA has threatened to strike if a new contract is not reached by then.
“Retailers are concerned by the possibility of a strike at ports on the East and Gulf coasts because contract talks have stalled,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a release. “Many retailers have taken precautions including earlier shipping and 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.”
The pressure comes on top of ongoing disruption issues including the attacks on commercial vessels in the Red Sea. Vessel diversions there have already led to increased shipping times and costs, and have led to equipment shortages and congestion in Asian ports, NRF and Hackett said.
“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.”
U.S. ports covered by Global Port Tracker handled 2.16 million twenty-foot equivalent units (TEUs) in June, the latest month for which final numbers are available. That was up 3.6% from May and up 17.7% year over year. That brought the total for the first half of 2024 to 12.1 million TEU, up 15% over the same period in 2023.
Ports have not yet reported July’s numbers, but Global Port Tracker projected that volume shot up 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 forecast to also total 2.34 million TEU, up 19.2% year over year. If trends continue, those numbers would bring 2024 to 24.9 million TEU, up 12.1% from 2023.
Global Port Tracker, which is produced for NRF by Hackett Associates, provides historical data and forecasts for the U.S. ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Port of Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast, and Houston on the Gulf Coast.
