Regardless of whether labor disputes snarl operations at the nation’s largest container ports, cargo import volume is expected to increase 8.5 percent this month over September 2011 as retailers bring in products for the holidays, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.
Such imports grew just 3 percent through the first six months of the year, but are forecast to grow 4.2 percent for the full year as imports surge over the next two months in preparation for the holidays.
“Retailers are bringing in more merchandise for the holiday season this year,” said NRF Vice President for Supply Chain and Customs Policy Jonathan Gold. “The question at some ports is whether longshoremen will be on the docks to unload it. Regardless of what happens with contract talks, retailers have contingency plans in place to ensure that merchandise reaches store shelves in time and that there is no disruption for shoppers.”
Talks between the International Longshoremen's Association and United States Maritime Alliance broke down in August, and at least one major ILA local has authorized a strike if a new contract for East Coast and Gulf Coast ports isn't agreed on by the time the current pact expires September 30. Labor and management have agreed to meet again next week under the supervision of the Federal Mediation and Conciliation Service. Retailers are considering a variety of contingency plans, including diverting cargo to West Coast ports, which are represented by a separate union and not affected.
Importers anticipating a strike placed orders early to ensure that their goods would arrive in time, and are most likely also switching deliveries for the East Coast to the West Coast instead, said Ben Hackett, founder of Hackett Associates, which authors NRF’s monthly Global Tracker report.
