September import cargo surge in US ahead of potential port strike: NRF

The looming expiration of the labour contract between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance, set for September 30, has retailers bracing for possible disruptions. The NRF has urged both parties to reach an agreement to avoid significant impacts on the economy, consumers, and retailers, NRF said in a press release.

“This is a critical time as retailers prepare for the all-important holiday season, and we need every port in the country working at full capacity,” NRF vice president for supply chain and customs policy Jonathan Gold said. “Many retailers have brought cargo in early and shifted to alternate ports as a precaution, but it is vital that labour and management at the East Coast and Gulf Coast ports actually sit down at the negotiating table and bargain in good faith for a new contract so we can avoid a disruption of any kind when their contract expires. A strike would be another blow to the supply chain as it continues to face challenges, and to the nation’s economy at a time when inflation is finally coming down and the Fed is poised to lower interest rates.”

July saw US ports handling 2.32 million twenty-foot equivalent units (TEU), an increase of 8.1 per cent from June and 21 per cent year-over-year, marking the highest July on record. August's figures are yet to be released, but projections place it at 2.37 million TEU, continuing the upward trend. September is forecast to see a 14 per cent year-over-year rise, reaching 2.31 million TEU.

This surge in imports is set against NRF's forecast of 2024 retail sales growth between 2.5 per cent and 3.5 per cent compared to 2023. Should these predictions hold, 2024 could see sustained import volumes above 2 million TEU for seven consecutive months, a streak not seen since 2022.

While ports remain active, concerns over a labour strike continue to loom, potentially disrupting this crucial period of import activity.

“Import levels are being impacted by concerns about the potential East and Gulf Coast port strike,” Hackett Associates founder Ben Hackett said. “This has caused some cargo owners to bring forward shipments, bumping up June-through-September imports. In addition, some importers are weighing the decision to bring forward some goods, particularly from China, that could be impacted by rising tariffs following the election.”

Fibre2Fashion News Desk (KD)