California Apparel News

As contract talks between West Coast longshore workers and their employers continued into their 14th week, importers were playing it cautious and bringing in as much merchandise as they could to fill holiday orders.

In August, cargo container–import volumes at the nation’s ports are expected to hit an all-time high of 1.54 million 20-foot containers coming through the country’s major ports, according to the recent National Retail Federation’s “Global Port Tracker” report. That would make it the highest monthly volume since the National Retail Federation began tracking U.S. port traffic in 2000. The previous high was set in July at 1.53 million cargo containers.

Importers are still concerned about the lack of a contract between longshore workers at 29 West Coast ports—including Long Beach and Los Angeles—and their employers, who are terminal operators and shipping lines. The six-year contract expired July 1.

“The negotiations appear to be going well, but each week that goes by makes the situation more critical as the holiday season approaches,” said Jonathan Gold, the NRF’s vice president for supply chain and customs policy.

The contract between the Pacific Maritime Association, based in San Francisco, and the International Longshore and Warehouse Union, also based in San Francisco, covers nearly 20,000 full and part-time workers. Dock workers remain on the job as the negotiations have stopped and started since beginning in mid-May.

The NRF reported that cargo-container volumes in June were up 9.1 percent over last year with 1.48 million cargo containers crossing the waterfront.

July was estimated to be at 1.53 million, up 5.8 percent over the previous year, and August is forecast to hit 1.54 million containers, a 3.6 percent increase over last year. September will also be strong at 1.48 million cargo containers, 2.8 percent more than last year.

The rest of the year will be in positive territory. October’s volume will reach 1.48 million cargo containers, up 3.3 percent. November will see a predicted 1.37 million containers, or a 2 percent rise, and December will taper off with 1.34 million cargo containers coming through the ports, up 2.1 percent over the previous December.

For 2014, port traffic should total 17.1 million cargo containers, a 5.2 percent jump over 2013, which totaled 16.2 million containers. Imports in 2012 reached 15.8 million containers.

Ben Hackett, the founder of Hackett Associates, which works with the NRF to research and write the “Global Port Tracker” report, said the healthy cargo-container traffic reflects an improving economy and merchants’ concerns about the contract negotiations. “U.S. GDP [gross domestic product] has increased in 11 out of the last 12 quarters, confirming that we are in a sustained period of expansion,” Hackett said. “A significant portion of the strong upswing in imports has been due to the labor negotiations with importers moving up shipments just in case.”