Major ports projected to score near-record import volume in August
A longshoremen strike might occur in fall at East and Gulf coast.
Major U.S. ports are projected to handle near-record import volumes in August, according to the National Retail Federation (NRF). The NRF's Global Port Tracker, which analyzes data from the nation's busiest ports, forecasts that the ports will handle 2.3 million twenty-foot equivalent units (TEUs) in August, up 1.6% from July and 4.5% from August 2021.
The NRF said the projected increase in import volume is due to several factors, including strong consumer demand, the ongoing COVID-19 pandemic, and the war in Ukraine. The pandemic has led to increased demand for goods, while the war in Ukraine has disrupted supply chains and led to higher prices for some goods.
The NRF also warned that a potential longshoremen strike on the East and Gulf coasts could disrupt the flow of goods and lead to even higher prices. The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX), which represents shipping companies, are currently in negotiations over a new contract. The current contract expires on September 30, and if a new agreement is not reached, the ILA could go on strike.
A longshoremen strike would have a significant impact on the U.S. economy. The ports affected by the strike handle about 40% of the nation's imports. A strike would slow down the flow of goods into the country, which could lead to shortages of some goods and higher prices.
The NRF is urging the ILA and the USMX to reach a new agreement before the current contract expires. A strike would be disruptive and costly for both the economy and consumers.
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