Inside Logistics

US imports rise on West Coast ports recovery

April to be up eight percent, first half of 2015 forecast at a three percent rise


April 13, 2015
by MM&D Online Staff

WASHINGTON, DC–Import cargo volume at US major retail container ports is expected to rise eight percent in April over the same time last year as West Coast ports continue to recover from a backlog of cargo that built up before a tentative new labour agreement was signed, according to the monthly Global Port Tracker report released by the National Retail Federation and Hackett Associates.

“Progress is being made but there’s still a lot of cargo waiting to be loaded onto trucks and trains and moved across the country even after it’s unloaded from the ships,” NRF vice-president for supply chain and customs policy Jonathan Gold said. “The situation is getting better but we’re still far from normal.”

The Pacific Maritime Association and the International Longshore and Warehouse Union tentatively agreed on a five-year contract in February. While ILWU leadership has recommended that members vote for ratification, votes won’t be counted until May 22. The lack of a contract and operational issues led to crisis-level congestion at the ports after the previous agreement expired last July, and issues were not resolved until a federal mediator and Labor Secretary Tom Perez joined the talks.

Ports covered by Global Port Tracker handled 1.2 million TEUs in February, the latest month for which after-the-fact numbers are available and historically the slowest month of the year. That was down 10.3 percent from January and down 3.6 percent from February 2014. One TEU is one 20-foot-long cargo container or its equivalent.

March was estimated at 1.48 million TEU, up 13.5 percent from 2014. April is forecast at 1.55 million TEU, up eight percent from last year; May at 1.57 million TEU, up 5.6 percent; June at 1.54 million TEU, up 4.3 percent; July at 1.58 million TEU, up 5.6 percent, and August at 1.61 million TEU, up 5.7 percent.

The first half of 2015 is forecast at 8.6 million TEU, an increase of three percent over the same period last year.

“The disruption on the West Coast appears to be over and great measures are being taken to clear the backlog of ships sitting offshore,” Hackett Associates Founder Ben Hackett said. “Of course, all those ships being discharged are causing landside issues as workers try to get containers out of the terminal gates and onto trucks and rail.”