The threat of a strike by longshore workers at U.S. ports could swell import container traffic to “a near-record surge” as shippers look to get holiday goods ashore in August.
Fresh off June’s early peak shipping season for end-of-year holiday merchandise, the latest Global Port Tracker indicates container traffic approaching record monthly levels as retailers bring in merchandise ahead of a potential job action at East Coast and Gulf Coast ports this fall, according to the report by the National Retail Federation and Hackett Associates.
The contract between the International Longshoremen’s Association and the United States Maritime Alliance expires on Sept. 30. Negotiations have stalled, and the ILA has threatened a walkout if a new contract is not agreed to by then.
“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. 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 June early peak came in the face of ongoing supply chain disruptions caused by attacks on commercial vessels in the Red Sea by Yemen-based Houthi rebels, with longer sailing times for diverted vessels, as well as equipment shortages and congestion at Asian ports, and higher shipping costs.
The trade group said it has continued to urge both sides to return to negotiations.
“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.”