- East Coast ports handled 55.5% of US container import volumes year-to-date
- Imports from Asia can divert via West Coast ports although would place significant strain on port and landside infrastructure
- European and Latin American imports would be left stranded with few viable alternatives
Talks between the unions, represented by the International Longshoremen Association (ILA), and, employers represented by the United States Maritime Alliance (USMX), broke down in June. On 13 September USMX said there had been no further negotiations on the master contract, while the ILA have made clear their intention to strike coast wide if there is no new agreement by 1 October, reports Seatrade Maritime News.
Global Freight Monitor report
HSBC Global Research’s latest Global Freight Monitor report noted that US Gulf and East Coast ports accounted for 57% of US imports and 8% of global container trade in 2023. A surge in volumes diverted to US West Coast ports in recent months has seen this share reduce slightly in 2024 to 55.5% of total import volume year-to-date.
Currently West Coast yard capacity utilisation stands at 65 – 71% with minimal delays to berthing, however rail dwell time runs at 5 – 12 days, according to figures quoted from Flexport.
However, it believes the situation would be much worse for European and Latin American imports into the US with a lack of viable alternatives.
With Montreal handling a maximum of 132,000 teu monthly this year, and Halifax 124,000 teu in Q2 2024 Canadian ports would be overwhelmed by diverted cargo. Meanwhile Mexico has both limited port and intermodal capacity.
On the possibility that the Biden administration could choose to invoke the Taft-Hartley Act with a court order for an 80-day cooling off period, as happened in the 2022 West Coast ports lockout. However, with elections looming HSBC believes it might take some time for the federal government to choose to step in.
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Source: Seatrade Maritime News
