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U.S. Imports Rise As Longshoreman Contract Remains Unresolved

Import volume at U.S. ports is expected to reach 1.47 million containers in September, a slight decrease from the 1.53 million high in August, according to the Global Port Tracker report from the National Retail Federation (NRF) and Hackett Associates. However, the total anticipated volume is higher than the five-year average for September, which is 1.42 million containers.

Retailers are stocking up early to prepare for the upcoming holiday season in the event that contract negotiations break down and a dockworker strike ensues.

The six-year agreement between the Pacific Maritime Association and the International Longshore and Warehouse Union expired in July. A tentative agreement on health benefits was developed in August but the two sides are negotiating on other issues as dockworkers continue to operate.

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“The negotiations have made progress and retailers have been stocking up, but there’s still cargo that needs to arrive before the holiday season kicks off,” said Jonathan Gold, VP for Supply Chain and Customs Policy for the NRF. “Retailers are making sure that consumer demand during the holidays will be met.”

The number of units shipped is expected to increase consistently through the rest of 2014. U.S. ports followed by Global Port Tracker are expected to handle 1.51 million Twenty-Foot Equivalent Units (TEU) in October, 1.39 million TEU in November and 1.37 million TEU in December.

Although cargo levels are increasing, recovery is not as significant as in previous recessions, according to Ben Hackett, Founder of Hackett Associates: “The North American economy is certainly growing, but at lower rates than one would expect coming out of a deep recession. It remains hesitant, growing in spurts rather than in a sustained pattern.”

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