Import Cargo Surge Continues Into January

A tentative labor agreement has recently halted a potential strike at East Coast and Gulf Coast ports, but major container ports in the U.S. have already seen a surge in imports. According to the Global Port Tracker report from the National Retail Federation (NRF) and Hackett Associates, the surge is likely to continue due to increases in tariffs.

“The new contract brings certainty and avoids disruptions, and we hope to see it ratified as soon as possible,” says Jonathan Gold, NRF vice president for supply chain and customs policy. “But the agreement came at the last minute, and retailers were already bringing in spring merchandise early to ensure that they would be well-stocked to serve their customers in case of another disruption, resulting in higher imports. The surge in imports has also been driven by President-elect Trump’s plan to increase tariffs because retailers want to avoid higher costs that will eventually be paid by consumers. The long-term impact on imports remains to be seen.”

The International Longshoremen’s Association and the U.S. Maritime Alliance announced the agreement for a six-year labor contract. The temporary contract extension was due to expire Jan. 15 and was moved to avoid a strike, which would have been the second in less than four months.

“Just a few days ago, the clock was ticking down toward a possible strike at U.S. East and Gulf Coast ports, and an agreement that would avoid a shutdown appeared to be some way off,” says Ben Hackett, Hackett Associates founder. “We have narrowly averted a strike, but that doesn’t mean there hasn’t been an impact. Importers had already front-loaded cargo in anticipation of delays, giving a boost to imports in December and early January.”