Posted on July 12, 2022
Imports set another record high this spring as the nation’s major container ports worked to reduce congestion and retailers stocked up before dockworkers’ West Coast labor contract expired, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.
“Cargo volume is expected to remain high as we head into the peak shipping season, and it is essential that all ports continue to operate with minimal disruption,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Supply chain challenges will continue throughout the remainder of the year, and it is particularly important that labor and management at West Coast ports remain at the bargaining table and reach an agreement.”
The contract between the International Longshore and Warehouse Union and the Pacific Maritime Association expired July 1, but cargo operations are continuing. NRF and more than 150 groups wrote to President Biden last week asking the administration to work with both sides to avoid disruption.
Ports saw a surge in activity this spring as a slowdown in cargo from Chinese factories closed by COVID-19 gave them a chance to clear built-up congestion. Retailers bringing in seasonal merchandise and importing other goods early to avoid any problems related to the contract negotiations may have also contributed to volume.
“Congestion of ships waiting to berth on the West Coast has eased, and we expect to see the same on the East Coast as carriers begin to return to their normal patterns of port calls,” Hackett Associates Founder Ben Hackett said. “After a short period of decline, freight rates are on the rise again as congestion in Europe and idle vessels there take capacity out of circulation.”
