*
Importers front-load purchases due to potential port
strike and
tariff hikes
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Retail group expects record container volumes in November
and
December
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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.