Posted on December 12, 2024
Retailers are under pressure from threats on two fronts heading into January as they frontload cargo imports in a bid to avoid the potential pain of a resumed East and Gulf coast dockworker strike and of broad tariffs being proposed by the incoming Trump administration, according to a report from the National Retail Federation (NRF) and Hackett Associates.
The report forecasts that the nation’s major container ports are expected to see a continued surge in imports through next spring, as importers rush to beat the impact of a container port strike as soon as January 15 and of tariff hikes as soon as January 20, researchers said.
“Either a strike or new tariffs would be a blow to the economy and retailers are doing what they can to avoid the impact of either for as long as they can,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a release. “We hope that both can be avoided, but bringing in cargo early is a prudent step to mitigate the impact on our industry, consumers and the nation’s economy. We call on both parties at the ports to return to the table, get a deal done and avoid a strike. And we call on the incoming administration to use tariffs in a strategic manner rather than a broad-based approach impacting everyday consumer goods.”
That elevated concern is growing as talks have broken down between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance, leaving the potential for a renewed strike starting January 15, when the current contract extension reached after a three-day strike in October will expire.
Likewise, logistics transportation providers have seen their stocks sink and retailers have predicted rising consumer prices in response to campaign speeches and social media posts from President-elect Donald Trump.
By the numbers, U.S. ports covered by NRF and Hackett’s “Global Port Tracker” report handled 2.25 million twenty-foot equivalent units (TEUs) in October, although the Port of Miami has yet to report final data. That was down 1.2% from September but up 9.3% year over year.
Ports have not yet reported November’s numbers, but Global Port Tracker projected the month at 2.17 million TEU, up 14.4% year over year. December is forecast at 2.14 million TEU, up 14.3% year over year. That would bring 2024 to 25.6 million TEU, up 14.8% from 2023. In comparison, before the October strike and November’s elections, November had been forecast at 1.91 million TEU and December at 1.88 million TEU, while the total for 2024 was forecast at 24.9 million TEU.
The report provides data and forecasts for the U.S. ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Port of Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast, and Houston on the Gulf Coast.
