US ports handle 2.25 mn TEUs in October, up 9.3% YoY, down 1.2% MoM

The likelihood of another strike in the US’ East Coast and Gulf Coast container ports next month and the newly elected President Trump’s plans to increase tariffs could lead to continued surge in imports through next spring across major container ports in the country, according to the Global Port Tracker report released by the National Retail Federation and Hackett Associates.

“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,” said Jonathan Gold, vice president for Supply Chain and Customs Policy at NRF. “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.”

Talks have broken down between the International Longshoremen’s Association and the US Maritime Alliance, leaving the potential for a strike after the current contract extension reached after a three-day strike in October expires January 15, NRF said in a press release.

NRF led a coalition of trade associations last week, urging both the parties mentioned above to resume negotiations. Meanwhile, Donald Trump has announced plans to implement broad tariff increases after his inauguration on January 20.

Ben Hackett, founder of Hackett Associates, said retailers are under pressure as they frontload cargo to avoid both the disruption of the strike and higher costs from the tariffs.

“Prospects of reaching a quick agreement on the key sticking point of automation are not looking good,” said Hackett, referring to the port labour 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 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.”

Ports have not yet reported November’s numbers, but Global Port Tracker projected the month at 2.17 million TEU, up 14.4 per cent year over year. December is forecast at 2.14 million TEU, up 14.3 per cent year over year. That would bring 2024 to 25.6 million TEU, up 14.8 per cent from 2023. 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 release added.

January 2025 is forecast at 2.2 million TEU, up 12 per cent year over year; February at 1.87 million TEU, down 4.1 per cent because of fluctuations in the timing of Lunar New Year shutdowns at Asian factories; March at 2.17 million TEU, up 12.7 per cent, and April at 2.15 million TEU, up 6.6 per cent.

ALCHEMPro News Desk (SG)