Surge of imports to US continues as possible East Coast port strike looms

Descartes Systems group

10/09/2024 18:28

By Lisa Baertlein
       LOS ANGELES, Sept 10 (Reuters) - Imports of U.S.
container cargo in August jumped 12.9% from a year ago as a
summer volume surge delayed cargo at major ports and anxiety
builds over a threatened longshore worker strike on the East
Coast and Gulf of Mexico on Oct. 1, trade data provider
Descartes Systems Group  DSG.TO  said on Tuesday. 
    U.S. seaports processed almost 2.5 million 20-foot
equivalent units in August. That was 3% less than in July, when
imports hit a 26-month high. Volume above 2.4 million TEU
created bottlenecks and cargo backups in the early days of the
pandemic, according to Descartes, a supply-chain software
provider. 
    The International Longshoremen's Association represents
45,000 dock workers at three dozen U.S. ports from Maine to
Texas and handles almost half of the nation's ocean trade. 
    ILA said last week its members are prepared to hit the
streets if they do not have a new contract with the United
States Maritime Alliance (USMX) employer group in place when the
current six-year agreement expires on Sept. 30. 
    The two sides are at an impasse over issues ranging from
wages and benefits to automation.
    A.P. Moller-Maersk  MAERSKb.CO , the second-largest
container carrier and a member of USMX, told customers on
Tuesday that the possibility of a strike at ports including New
York/New Jersey, Houston and Savannah, Georgia, increases each
day without a settled contract in hand.
    "Should a general work stoppage occur on the U.S. Gulf and
East Coasts, even a one-week shutdown could take 4-6 weeks to
recover from, with significant backlogs and delays compounding
with each passing day," Maersk said.    
    A recent trend by U.S. retailers to push forward holiday
promotions suggests they have been rushing in seasonal goods to
mitigate the risk of cargo getting stranded during a strike.
    Walmart  WMT.N  and Target  TGT.N , two of the largest
container shipping customers, held early back-to-school sales to
fend off competition from Amazon.com's  AMZN.O  Prime Day. The
late timing of Thanksgiving this year is shortening the
Christmas shopping season and boosting the likelihood of early
promotions. 
    An increase in industrial-sector shipments also amplified
the early rise in incoming volume, trade researchers said. 
         

 (Reporting by Lisa Baertlein in Los Angeles, additional
reporting by Stine Jacobsen in Copenhagen
Editing by Matthew Lewis)
 ((lisa.baertlein@thomsonreuters.com))