Imports at
major US container ports are expected to remain strong in October, despite a
three-day strike last week that temporarily halted operations from Maine to
Texas.
The
port strike by members of the International Longshoremen’s Association, which
began on 1 October after contract negotiations stalled, ended after a tentative
agreement was reached on a wage increase and a short-term contract extension
until 15 January.
The National Retail Federation (NRF) and
Hackett Associates reported that whilst the disruption caused some temporary
logistics challenges, no major impact on the upcoming holiday season is
anticipated.
“It was a huge relief for retailers, their customers, and the nation’s
economy that the strike was short-lived,” said Jonathan Gold, NRF vice
president for supply chain and customs policy.
Ports across the country are working to
recover with import volumes expected to remain steady in October.
“The strike wasn’t without impacts –
retailers who brought in cargo early or shifted delivery to the West Coast face
added warehousing and transportation costs,” added Gold. “But the priority now
is for both parties to negotiate in good faith and reach a long-term contract
before the short-term extension ends in mid-January. We don’t want to face a
disruption like this all over again.”
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Hackett Associates founder Ben Hackett noted
that a surge in imports earlier this year was largely driven by precautionary
measures taken by wholesalers and retailers ahead of the port strike, rather
than an increase in demand.
“We may see some short-term congestion on
the West Coast but nothing significant, and East Coast delays should be
limited,” said Hackett.
In August, US ports handled 2.34m
Twenty-Foot Equivalent Units (TEUs), up 0.9% from July and 19.3% higher than
the previous year. September’s numbers are projected at 2.2m TEUs, with October
forecasted at 2.12m TEUs, up 3.1% year over year. Despite the brief strike, the
national port totals for October have not been significantly affected.
Looking ahead, the Global Port Tracker
forecasts continue to show strong volumes through the end of 2024 with an
anticipated 12.1% increase in total imports compared to 2023, reaching 24.9m
TEUs.
