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The surge in imports continues to the US as a possible East Coast port dispute looms.

The imports of U.S. containers in August increased 12.9% compared to a year earlier as the summer surge in cargo delayed cargo at major port and fears grow over an upcoming longshore strike along the East Coast of Florida and Gulf of Mexico, according to Descartes Systems Group.

In August, U.S. ports processed nearly 2.5 million 20-foot units. This was 3% lower than in July when imports reached a 26-month peak. According to Descartes supply-chain software, early on in the pandemic, cargo backlogs and bottlenecks were caused by volumes above 2.4 millions TEU.

The International Longshoremen's Association is a union that represents dock workers in three dozen U.S. port cities from Maine to Texas, and they handle almost half the nation's maritime trade.

ILA members were prepared to take to the streets if a new agreement with the United States Maritime Alliance employer group (USMX), which expires at the end of September, is not in place.

Both sides have reached an impasse on issues such as wages, benefits and automation.

A.P. Moller-Maersk is the second-largest carrier of containers and a USMX member. It told its customers on Tuesday that a strike in ports such as New York/New Jersey and Savannah, Georgia increases every day without a contract.

Maersk stated that even a shutdown lasting one week could last 4-6 weeks, as significant delays and backlogs would continue to grow with every passing day.

Recent trends by U.S. retail outlets to promote holiday sales suggest that they are rushing seasonal products to reduce the risk of cargo being stranded in a strike.

Walmart and Target, the two largest container shippers, have held back-to school sales early to compete with Amazon.com Prime Day. Due to the late timing of this year's Thanksgiving, the Christmas shopping period is shorter and more likely to be early.

Researchers in the trade sector said that an increase in industrial shipments also accelerated the rise in volume.

(source: Reuters)