3 Strategic Actions After SC Ports Temporarily Closes Leatherman Terminal

Context: Why this matters to U.S. importers

This consolidation matters to U.S. importers for supply chain resilience planning. The South Carolina Ports Authority announced a temporary pause of container operations at Leatherman Terminal starting Aug. 1, per a June 25 press release. Operations will relocate to North Charleston and Wando terminals to concentrate capacity. Importers should monitor container shipping rates and terminal congestion via container shipping rates as schedules shift.

What SC Ports announced and timeline

SC Ports attributed the consolidation to numerous headwinds and a tempered volumes forecast. The Leatherman Terminal currently handles about 5% of port volumes. MSC is the only line calling Leatherman, operating about five weekly services. Most vessels will shift to North Charleston and the remainder to Wando Welch. The transition begins in July and will wrap up in August. It is unclear when the terminal will reopen.

Operational impacts on carrier services and capacity

Consolidating from three terminals to two drives immediate capacity reallocation. SC Ports noted ample capacity at the other terminals because of the down market. The port expects cost savings from reduced terminal overhead and handling. Shipping lines face higher costs and fuel rates, forcing carriers to seek more competitive port calls.

• Immediate effects: capacity shifts, schedule adjustments, and equipment rebalancing.
• Service impacts: berth windows may change and dwell could temporarily rise.
• Cost impacts: terminal operating costs may fall, but short-term surcharges could appear.

Landed Cost and DDP planning considerations

Importers must recalculate landed cost models given terminal consolidation. Changes in drayage distance and dwell increase variable landed costs. Review DDP terms and updates to pick-up points to maintain landed cost accuracy. For DDP scenarios, evaluate updated delivery and customs clearance costs with your logistics partners.

Consider running scenario pricing for DDP variations using updated cartage figures. See DDP shipping cost benchmarks for comparison via DDP shipping cost.

CBP compliance and Section 301 Tariffs implications

Consolidation can affect CBP manifesting and entry filing workflows. Importers must ensure HTS classifications, valuations, and port of entry data remain consistent. Shifts in port operations do not change Section 301 tariff obligations, but duty mitigation strategies should be revisited. Maintain audit-ready documentation for any rerouted shipments or consolidated manifests.

Risk management and supply chain resilience actions

Importers should treat the pause as a trigger for resilience reviews. Adjust safety stock, update contingency carriers, and map alternative gateways. Revisit contracts for force majeure and schedule-variance clauses with carriers and terminals.

1. Recalculate landed cost models. Run multiple scenarios reflecting drayage changes and dwell fees.
2. Update CBP filings and audit trails. Ensure manifests and entries match rerouted ports immediately.
3. Negotiate contingency clauses with carriers. Lock service guarantees and rollback options where feasible.

Market context and historical precedent

The Leatherman Terminal first opened in 2021 and closed in 2023 due to a labor dispute. The terminal reopened in 2024 after an agreement with the International Longshoremen’s Association. The current pause reflects macroeconomic headwinds, an uncertain trade forecast, and tempered volumes. The port aims to make costs more competitive amid higher fuel and operating costs.

Key Takeaways

SC Ports will pause Leatherman operations starting Aug. 1 to control costs and consolidate capacity. Leatherman handles about 5% of volumes and MSC runs about five weekly services there. Importers must update landed cost calculations, confirm CBP filings, and activate contingency routing plans. Monitor container shipping rates and DDP cost benchmarks as schedules and fees change.