Global Maritime Focus
Special Report
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Some shippers are also looking to move cargo ahead of another potential work stoppage at East and Gulf coast ports if the International Longshoremen ’ s Association ( ILA ) and US Maritime Alliance ( USMX ) are unable to reach a final deal before the Jan . 15 expiration of the tentative contract extension that got the union back to work after a three-day strike in early October .
“ Neither of these developments is good for retailers , their customers or the economy ,” Jonathan Gold , vice president for supply chain and customs policy at the National Retail Federation ( NRF ), said in the latest Global Port Tracker ( GPT ) report , published monthly by Hackett Associates and the NRF .
In response , US retailers have upped their import projections for November and December by more than 350,000 TEUs , according to the November GPT report . The report forecasted year-over-year increases in total US imports of 13.6 % in November and 6.1 % in December , up from 0.9 % and 0.2 %, respectively , in the October report .
Less than a week after the November GPT report was released , the ILA broke off talks with the USMX due to what the union characterized as a proposal from management to introduce semi-automated equipment that would eliminate longshore jobs .
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‘ Chipping away ’
Trans-Pacific ocean volumes have exceeded prior-year levels for 12 straight months , thanks in part to frontloading ahead of the first ILA strike . From January through September , the latest month for which data is available , containerized US imports from Asia have spiked 18.1 % compared with the same nine months last year , according to PIERS , a sister product of the Journal of Commerce within S & P Global .
“ It ’ s likely that there ’ s going to be some capacity constraints until the end of the year .”
Continued volume strength in the fourth quarter has extended the traditional trans-Pacific peak season , keeping a floor under rates and creating operational bottlenecks — primarily on the railroads — in Southern California .
December 2 , 2024 | Journal of Commerce 19