Retailers Expedite, Reroute Imports to Dodge Possible Port Strike

A potential labor strike at East Coast and Gulf Coast ports this fall is encouraging many retailers to take precautions, such as bringing in merchandise earlier or shifting cargo to West Coast ports, the National Retail Federation (NRF) said last week.

The expedited shipping is expected to produce a surge in inbound cargo volume at U.S. major container ports, the NRF said. The volume is forecast to jump 19.2% in August from a year earlier, following a projected 22.1% increase in July.

A potential strike looms because the contract between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) covering East Coast and Gulf Coast ports expires Sept. 30. Negotiations between the two sides “have broken down” and the ILA has threatened to strike if a new contract is not reached by the time the existing one runs out, the NRF said.

The parties "are very far apart, particularly on the economic issues," ILA leaders said this week. "In fact, we are at an impasse."

USMX said last week it has made several offers since contract talks began in 2022 and that it remains ready to continue discussing a new agreement. It said its latest proposal includes "industry-leading wage increases" and would "continue to provide premier health care coverage."