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South Carolina Ports (SC Ports) will temporarily suspend container operations at its Hugh K. Leatherman Terminal beginning August 1, marking the latest setback for the $1 billion facility that has struggled to gain momentum since opening just over five years ago.
The port authority said Thursday it will consolidate container operations at its Wando Welch and North Charleston terminals while the industry navigates weaker cargo volumes, trade uncertainty and other market headwinds.
"We are working with our maritime partners to make this business decision to achieve long-term, sustainable growth," SC Ports President and CEO Micah Mallace said in a statement. "We all want to retain current business and attract new business to Charleston."
SC Ports said the remaining terminals have sufficient capacity to handle current volumes while maintaining the reliable service customers expect from the Port of Charleston.
The move comes as U.S. ports face an increasingly uncertain outlook amid shifting trade patterns and softer import demand.
"As an economic driver and job creator for South Carolina, we remain focused on delivering exceptional service to our customers and generating growth," Mallace said. "The maritime industry, and the thousands of companies and people connected to our port, all depend on us — and we intend to deliver for them."
The announcement is the latest twist in the turbulent history of Leatherman Terminal, which was envisioned as the centerpiece of Charleston's future growth.
When the terminal opened in April 2021, it was hailed as the first new container terminal built in the United States since 2009. The initial phase added 700,000 TEUs of annual capacity, with a 1,400-foot berth capable of accommodating container ships carrying up to 20,000 TEUs. At full buildout, the terminal is expected to add 2.4 million TEUs of annual capacity, effectively doubling Charleston's container handling capability.
But the facility has rarely operated as originally envisioned.
Within months of opening, Leatherman became the center of a high-profile labor dispute between SC Ports and the International Longshoremen's Association over which workers would staff the terminal's ship-to-shore cranes. The conflict sharply limited operations for more than three years as legal battles wound through federal courts and labor regulators.
The dispute was finally resolved in mid-2024, allowing SC Ports to reopen the terminal and launch regular weekly Asia container services. Port officials at the time described the reopening as a major milestone that would strengthen Charleston's competitive position in the fast-growing Southeast port market.
Now, less than two years later, SC Ports is once again idling the terminal—this time because demand no longer justifies operating all three container terminals.
The port authority characterized the move as a short-term consolidation rather than a permanent closure and said Wando Welch and North Charleston provide ample capacity for current and anticipated cargo volumes. SC Ports did not say when Leatherman Terminal is expected to resume operations.
Source: GCAPTAIN_NEWS
