Retailers Bringing 'As Much Merchandise Into the Country Ahead of Rising Tariffs as Possible' in Frontloading Effort

Retailers are engaging in a substantial frontloading effort to get merchandise stateside before a ramping up of anticipated tariffs, according to the National Retail Federation (NRF).

Citing data from the Global Port Tracker report released on March 10 by the NRF and Hackett Associates, the organization indicated that imports at major American ports are anticipated to remain higher than usual throughout the spring but also that overall traffic could wane as the year winds on.

“Retailers are continuing to bring as much merchandise into the country ahead of rising tariffs as possible,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said.

“The on-again, off-again tariffs against Canada and Mexico won’t have a direct impact on port volumes because most of those goods move by truck or rail. But new tariffs on goods from China that have already doubled from 10% to 20% are a concern, as well as uncertainty over ‘reciprocal’ tariffs that could start in April. Retailers have been working on supply chain diversification, but that doesn’t happen overnight. In the meantime, tariffs are taxes on imports ultimately paid by consumers, not foreign countries, and American families will pay more as long as they are in place," Gold added.

Trump Administration Considering New Fee on Chinese-Built Ships Docking at US Ports

A further strain on supply chains, and eventually U.S. consumers, could come as a result of a policy being considered by the Trump administration, per Retail Dive.

A fee of between $1 million and $1.5 million imposed each time a Chinese-built ship docks at an American port is currently being proposed by the United States Trade Representative. The proposal is currently open for public comment.

“Given that a significant portion of the global container fleet has been built in China, this means that there will be further costs that will be passed on to cargo owners and ultimately the consumer,” Hackett Associates Founder Ben Hackett said.

“Ports accommodated the surge in import volume in the final quarter of 2024 without major issues, but this will place additional pressure on the supply chain while also harming the nation’s smaller ports,” he added.

If the policy is enacted, carriers are likely to employ larger vessels and consolidate calls at major ports, instead of making more stops at smaller ports.

U.S. ports recorded by the Global Port Tracker dealt with 2.22 million 20-foot equivalent units (TEU) — one 20-foot container or its equivalent — in January, a figure which was up by 4.4% over December and up 13.4% year over year. The Global Port Tracker projected 2.07 million TEU for February, up 6.1% YoY, and if that figure holds, it would represent the most traffic in February in the last three years.

"March is forecast at 2.14 million TEU, up 10.8% year over year; April at 2.13 million TEU, up 5.7%; May at 2.14 million TEU, up 2.8%; June at 2.07 million TEU, down 3.2%, and July at 1.99 million TEU, down 13.9%," the NRF reported.