Peak shipping season is about to begin and the West Coast ports are still breaking records, according to the latest edition of the monthly Global Port Tracker issued by the National Retail Federation (NRF) and Hackett Associates. The news comes as labor talks continue between the International Longshore and Warehouse Union and the Pacific Maritime Association.
“Cargo volume is expected to remain high as we head into the peak shipping season, and it is essential that all ports continue to operate with minimal disruption,” says NRF Vice President for Supply Chain and Customs Policy Jonathan Gold. “Supply chain challenges will continue throughout the remainder of the year, and it is particularly important that labor and management at West Coast ports remain at the bargaining table and reach an agreement.”
On July 1, more than 150 organizations — including The Toy Association — signed a letter to President Biden urging the administration to work with both parties to ensure a new contract is signed without further disruption to the supply chain.
While inflation has been cooling some consumer demand and some retailers are having issues with excess inventory, record imports continue. The most recent data from May reflects a 2.7% rise in imports to U.S. ports versus the same period last year. The 2.4 million Twenty-Foot Equivalent Units (TEU = one 20-foot container or its equivalent) was a 6% increase from April and set a new record for the number of containers imported in a single month since NRF began tracking imports in 2002, topping 2.34 million TEU in March.
The current wave of increased imports is believed to be due to retailers bringing in merchandise early to counter any potential labor strike paired with a surge following the spring COVID-19 lockdowns that impacted several manufacturing hubs in China.
