This week:
- US retailers expect an import surge through next spring, frontloading continues
- As ILA strike date nears, USMX puts its foot down about automation in new statements
- Trump declares support for ILA, union hopes it will turn contract talks in their favor
- Bankruptcy sale of Yellow terminals sparks a “land rush” in US LTL industry
- Port of Portland secures deal with stevedore to keep beleaguered Terminal 6 open
US Retailers Brace for Import Surge, Frontloading Continues Strong Pace
Early 2025 may bring labor disruptions and new tariffs, but US retailers remain optimistic. In a statement released by the National Retail Federation (NRF) last week, retailers said they’re hopeful neither potential threat materializes, but they’re prepared either way. According to the statement, retailers are also preparing for a significant import surge that could last through next spring as the year-long frontloading trend continues at a strong pace.
“A strike or new tariffs would undoubtedly harm the economy, and retailers are doing their best to minimize the consequences,” Jonathan Gold, NRF vice president of supply chain and customs policy, said in the statement. “We’re optimistic that both can be averted, but bringing in cargo early is a prudent step to safeguard our industry, consumers, and the nation’s economy.”
The latest Global Port Tracker (GPT) from the NRF and Hackett Associates shows a significantly upgraded import forecast for the coming months. December imports are now projected to surge 14.3% year-over-year, a substantial increase from the previous forecast of 6.1%. Total US imports in 2024 are now forecasted to reach 25.6 million TEUs, a 14.8% increase over 2023.
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USMX Pushes Automation Issue as Second ILA Strike Date Nears
The United States Maritime Alliance (USMX) is taking a harder stance on the need for automation at US East and Gulf Coast ports, a key sticking point in negotiations with the International Longshoremen’s Association (ILA).
The ILA went on strike at US East and Gulf coasts on October 1, but a temporary deal struck three days later is keeping the ports open through January 15. Negotiations on a new master contract have stalled, however. The talks were private until December 3, when both parties started issuing fiery public statements.
The USMX says the contract impasse is due to the ILA’s opposition to rail-mounted gantry cranes sought by ocean carriers. Meanwhile, the ILA has released multiple statements and a video accusing the USMX of mounting a “weak publicity campaign” meant to promote automation technology as a necessity.
But now, the USMX is taking a hardline stance on the issue. According to the organization’s latest statement, “Modernization and investment in new technology are core priorities required to successfully bargain a new master contract with the ILA.”
Trump Issues Statement Backing ILA, Union Grateful for the Support
US President-elect Donald Trump issued a statement on his Truth Social network last week showing strong support for the ILA in their ongoing talks with the USMX. In the post, Trump addressed the fight over automation at US ports, saying it’s not worth the “distress, hurt, and harm it causes for American workers, in this case, our longshoremen.”
Instead of terminal operators and ocean carriers investing in automation, they should “spend it on the great men and women on our docks,” Trump’s post said. The statement, which echoes many of the ILA’s public talking points, was issued by Trump following a two-hour meeting between him, ILA President Harold Daggett, and Executive Vice President Dennis Daggett.
Harold Daggett followed up with his own statement, saying the union is “grateful to President Donald Trump for his courageous support for American ILA longshore workers.” He went on to say he hopes the President-elect’s support will encourage the USMX to remove language related to automated or semi-automated equipment in their proposed contract.
Estes and R+L Buy Yellow Terminals as LTL “Land Rush” Heats Up
The ongoing transformation of the US less-than-truckload (LTL) industry accelerated last week as bankrupt Yellow sold 12 terminals to Estes Express Lines and R+L Carriers for a combined $192.5 million. The sales were the latest in what some industry observers are calling a “land rush” that is changing the competitive landscape in the US LTL industry.
Estes, the fourth-largest LTL carrier in the US, secured 11 of the terminals, paying $142.5 million for various facilities located across the country. Meanwhile, R+L, the fifth-largest US LTL provider, acquired Yellow’s Maybrook, New York, terminal for $50 million. Estes and R+L are positioning themselves for growth, capitalizing on the opportunities presented by Yellow’s collapse and the increasing demand for LTL services.
Port of Portland Secures Deal to Keep Container Terminal Open
The Port of Portland has reached a tentative agreement with its long-time stevedore, Harbor Industrial, to keep its struggling Terminal 6 open. The terminal had faced the possibility of closure due to a long run of financial losses.
Under the framework agreement, Harbor Industrial will assume long-term operational responsibilities for the terminal, including marketing, rate-setting, and labor management. This will allow the port to focus on its core infrastructure and development projects.
The port hopes to significantly increase container volume at Terminal 6, targeting 120,000 containers per year by 2032 and eventually 180,000 containers annually. However, the port hasn’t said where that extra business would come from.
Image Credit
Image by Alfred Derks from Pixabay
