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Temporary Labor Agreements lead to surge in container cargo shipping imports: Insights from the Global Port Tracking Report
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Temporary Labor Agreements lead to surge in container cargo shipping imports: Insights from the Global Port Tracking Report

2025-01-20

The recently announced temporary labor agreement succeeded in averting a potential strike at East Coast and Gulf Coast ports, providing a much-needed respite for the shipping industry. However, imports at the country's major container ports have increased significantly and this trend is expected to continue. The main reason for the increase in imports was the looming possibility of tariff increases, which prompted foreign trade companies and importers to speed up production and ship goods ahead of possible price increases.

 

According to the latest Global Port Tracker report released by the National Retail Federation and Hackett Society, U.S. port throughput is expected to remain strong in the coming months. Throughput is expected to reach 2.16 million TEUs in January, up 10% year on year. This positive momentum is expected to continue into March, with throughput expected to reach 2.13 million TEUs, up 10.6% year on year.

 

Throughput is expected to decline slightly in February, with throughput expected to fall to 1.87 million TEU, down 4.5%. The decline was attributed to factory shutdowns during the Chinese New Year holiday, which usually affects shipping volumes. Nevertheless, the outlook for April and May remains positive, with throughput expected to reach 2.18 million TEU and 2.2 million TEU, up 8% and 5.9%, respectively.

 

U.S. ports covered by the Global Port Tracking System handled 2.17 million 20-foot equivalent units (one 20-foot container or its equivalent) in November, but the ports of New York and New Jersey have yet to report final numbers. That's down 3.2 percent from October, but up 14.7 percent from a year earlier.

 

As the shipping industry continues to evolve, the twin factors of avoiding labor disruptions and anticipating tariff changes are shaping a vibrant environment for U.S. ports. Foreign trade companies and stakeholders in the shipping industry need to remain agile to respond effectively to these developments. The Global Port Tracker Report is an important tool to understand these trends and prepare for the future of U.S. container shipping.

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