Increase In Imports Expected at U.S. Ports With Looming Tariffs and Potential Strike, NRF Says

The Global Port Tracker report released today by the National Retail Federation (NRF) and Hackett Associates details an expected surge in imports from now until next spring due to an imminent increase in tariffs and potential strike at container ports in the East and Gulf coasts.

“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,” says Jonathan Gold, NRF vice president for supply chain and customs policy. “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.”

The possibility of a strike arose after talk breakdowns between the International Longshoremen’s Association and the U.S. Maritime Alliance. NRF rallied trade associations to send a letter to both organizations, petitioning for negotiation. 

“Prospects of reaching a quick agreement on the key sticking point of automation are not looking good,” says Ben Hackett, founder of Hackett Associates, referring to the port labor contract. “The window to frontload goods on vessels arriving before a potential strike is quickly closing. Then there are issues as President-elect Trump promises to increase tariffs when he takes office. It is not clear whether this will actually take effect immediately or whether it will take time to implement the tariffs, but shippers are moving up as much cargo as they can before then.”

Global Port Tracker documented 2.25 million Twenty-Foot Equivalent Units handled by U.S. ports as of October, up 9.3% year over year.