The ILA has continued to threaten to strike if a new contract is not reached
WASHINGTON – The nation’s major container ports are expected to see another busy month in September ahead of a potential labor strike at East Coast and Gulf Coast ports, according to the Global Port Tracker report released today by the National Retail Federation and Hackett Associates.
Critical time
“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.
Alternate ports
“Many retailers have brought cargo in early and shifted to alternate ports as a precaution, but it is vital that labor 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.”
The contract between the International Longshoremen’s Association and the United States Maritime Alliance covering East and Gulf Coast ports is set to expire on September 30. The ILA has continued to threaten to strike if a new contract is not reached by then.
NRF last week renewed its call for both sides to come to an agreement before the contract expires, with NRF President and CEO Matthew Shay saying a disruption “would significantly impact retailers, consumers and the economy.”
“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.”
8.1% increase
It is noteworthy that In July, the US ports tracked by Global Port Tracker handled 2.32 million TEUs, marking an 8.1% increase from June and a 21% rise from the previous year, making it the busiest July on record.
For August, Global Port Tracker forecasts 2.37 million TEUs, which represents a 20.9% increase year-over-year and the highest level since the 2.4 million TEUs recorded in May 2022.
Furthermore, September’s forecast is 2.31 million TEUs, up 14% from the previous year; October is projected at 2.08 million TEUs, up 1.3%; November at 1.92 million TEUs, up 1.6%; and December at 1.89 million TEUs, up 0.9%. This would bring the total for 2024 to 24.98 million TEUs, a 12.3% increase from 2023.
Also, the first half of 2024 saw 12.1 million TEUs, a 14.8% rise over the same period in 2023. January 2025 is anticipated to see 1.96 million TEUs, a slight 0.3% decrease year-over-year.
The import figures align with NRF’s forecast that core retail sales—excluding automobile dealers, gasoline stations, and restaurants—will grow between 2.5% and 3.5% in 2024 compared to 2023.
