The South Carolina Ports Authority plans to temporarily pause container operations at its Leatherman Terminal starting Aug. 1, according to a June 25 press release.
In the short term, operations will be relocated to the North Charleston and Wando terminals.
SC Ports attributed the consolidation to “numerous headwinds, an uncertain trade forecast and tempered volumes,” per the release.
The decision to temporarily shutter the terminal stems from efforts to put cost control measures in place, an SC Ports spokesperson told Supply Chain Dive. They added that shipping lines have been dealing with higher costs and fuel rates, and the port needs to “accommodate that and offer more competitive service.”
“We have ample capacity at our other two terminals because of the down market right now, and so, you know, when you go from consolidating all of your containers from three terminals to two, of course, there will be cost savings involved there,” the spokesperson said.
The Leatherman Terminal currently handles about 5% of volumes at the port, with MSC currently being the only shipping line call, the spokesperson said. MSC operates about five weekly services at the terminal, most of which will be relocated to the North Charleston Terminal while the rest goes to Wando Welch. The transition is set to begin in July, but wrap up in August, they said.
It is unclear when the terminal will reopen. The spokesperson said that it depends on “numerous factors,” including the strength of returning volumes and the overall port industry, capacity needs and the ability for SC Ports to make costs more competitive.
The Leatherman Terminal opened in 2021, per the spokesperson, but then had to close in 2023 due to a labor dispute between the port and the International Longshoremen’s Association. The two parties eventually reached an agreement, and the terminal reopened in 2024.
Alejandra Carranza contributed reporting to this story.
