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US importers set to accelerate shipments to record levels on tariff, strike threats
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US importers set to accelerate shipments to record levels on tariff, strike threats
Dec 11, 2024 3:00 PM

*

Importers front-load purchases due to potential port

strike and

tariff hikes

*

Retail group expects record container volumes in November

and

December

*

Trump's tariff proposals cause anxiety among retailers and

importers

By Siddharth Cavale

NEW YORK, Dec 9 (Reuters) - The United States' busy

ports kicked activity up a notch in November and December, when

inbound cargo traffic is set to reach new records, the National

Retail Federation industry group said on Monday.

Retailers had already been front-loading purchases due to a

shortened holiday season and shipping bottlenecks worldwide, but

the prospect of a mid-January port strike and tariff increases

planned by President-elect Donald Trump has big importers

accelerating their buys.

"The window to front-load goods on vessels arriving before a

potential strike is quickly closing. Then there are issues as

President-elect Trump promises to increase tariffs," said Ben

Hackett, founder of Hackett Associates, a consulting firm.

The International Longshoremen's Association union and the

United States Maritime Alliance (USMX) employer group were at

odds as of November, after temporarily suspending a strike in

October. A strike could strangle activity at ports stretching

from Maine to Texas once the contract ends on Jan. 15.

October's three-day strike was the first large-scale strike at

East Coast and Gulf Coast ports in nearly 50 years, which caused

a summer rush of imports to the United States.

Trump's proposals for tariffs of 10% to 20% on all imports and a

60% or more tariff on goods from China have added to retailers'

anxiety. Between September and mid-November, more than 200

companies in the S&P 1500 Index mentioned tariffs on conference

calls or at investor events as an issue.

Trump promised an additional 25% tariff on goods from Canada and

Mexico and a further 10% tariff on China unless the three

countries clamped down on illegal immigration and fentanyl

flowing into the United States.

"Shippers are moving up as much cargo as they can before

then," Hackett added.

NRF, which counts the country's largest shippers, Walmart ( WMT )

, Target ( TGT ) and Lowe's among its members,

said in a Monday report it expects November container volumes to

hit a record 2.17 million 20-foot equivalent units (TEUs), up

14.4% from a year earlier. December volumes are forecast at a

record 2.14 million TEUs, up 14% year over year, NRF said.

U.S. shoppers could lose up to $78 billion in annual spending

power annually if Trump's tariffs proposal on all imports are

implemented, a previous NRF study showed.

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