Import cargo volume at major U.S. ports will increase 2.3% this month from a year ago, despite federal spending cuts that could slow down cargo processing, according to a report by the National Retail Federation and Hackett Associates.
“Retailers are aware of the impact of the cuts on Customs operations at the ports and are working to plan accordingly so the impact on merchandise headed for the store shelves is minimized,” said Jonathan Gold, the retail federation’s vice president for supply chain and customs policy.
NRF said Homeland Security Secretary Janet Napolitano warned that federal spending cuts under the sequestration that began March 1 would result in port staffing cutbacks that could cause U.S. Customs and Border Protection inspections of cargo containers to take as long as five days.
“At the port level there may well be a slowdown in Customs clearance, but trade will continue to flow,” Ben Hackett, Hackett Associates founder, said in a statement.
“It may cause terminal congestion if the backlog builds up, and that needs to be planned for in advance,” he said.
