Import Cargo Up in January

While a potential strike at East Coast and Gulf Coast ports has been avoided, the nation’s major container ports have already seen a surge in imports that is expected to continue because of potential increases in tariffs. That’s according to the latest Global Port Tracker report released by the National Retail Federation and Hackett Associates.

The International Longshoremen’s Association and the U.S. Maritime Alliance announced earlier this week that they had reached a tentative agreement on a new six-year labor contract, and that workers will remain on the job until the pact is ratified. A temporary contact extension reached in October was set to expire on Jan. 15 and the move avoided a possible strike on Jan. 16. The strike would have been the second in less than four months following a three-day walkout at the beginning of October.

“The new contract brings certainty and avoids disruptions, and we hope to see it ratified as soon as possible,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “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.”

January is forecast at 2.16 million TEU (Twenty-Foot Equivalent Units – one 20-foot container), up 10% year over year; February at 1.87 million TEU, down 4.5% because of Lunar New Year factory shutdowns in China; March at 2.13 million TEU, up 10.6%; April at 2.18 million TEU, up 8%, and May at 2.2 million TEU, up 5.9%.

Click here for more from the NRF/Hackett report.