South Carolina Ports to Suspend Operations at Leatherman Terminal Due to Economic Challenges

South Carolina Ports (SC Ports) will temporarily suspend container operations at its Hugh K. Leatherman terminal starting August 1. This decision marks another blow for the $1 billion facility, which has struggled to gain traction since its opening just over five years ago.

The port authority announced on Thursday that it will consolidate container operations at the Wando Welch and North Charleston terminals as the industry faces weakening shipping volumes, trade uncertainty, and other market challenges.

Jim Mallas, President and CEO of SC Ports, stated in his announcement: "We are working with our maritime partners to make this business decision for long-term sustainable growth. We all want to maintain current business and attract new customers to Charleston."

SC Ports noted that the remaining terminals have sufficient capacity to handle current volumes, ensuring reliable service for customers expecting from the Port of Charleston.

This decision comes amid an increasingly uncertain outlook for U.S. ports, which are facing changing trade patterns and declining demand for imports.

"As an economic engine and job creator for South Carolina, we remain focused on providing exceptional service to our customers and generating growth," Mallas added. "The maritime industry and the thousands of companies and people connected to our port all depend on us, and we intend to meet their expectations."

This announcement marks the latest twist in the tumultuous history of the Leatherman terminal, which was envisioned as a hub for Charleston's future growth.

When the terminal opened in April 2021, it was hailed as the first new container terminal built in the U.S. since 2009. The initial phase added 700,000 TEU of annual capacity, with a 1,400-foot berth capable of accommodating container ships holding up to 20,000 TEU. At full build-out, the terminal is expected to add 2.4 million TEU of annual capacity, effectively doubling Charleston's container handling capabilities.

However, the facility has rarely operated as initially planned.

In the months following its opening, Leatherman became the center of a contentious labor dispute between SC Ports and the International Longshoremen's Association regarding which workers would operate the terminal's cranes. The conflict severely limited operations for more than three years while legal battles played out in federal courts and labor regulators.

The dispute was finally resolved in mid-2024, allowing SC Ports to reopen the terminal and launch regular weekly container services from Asia. Port officials at that time described the reopening as a significant milestone that would strengthen Charleston's competitive position in the rapidly growing Southeast port market.

Now, less than two years later, SC Ports is suspending operations at the terminal again — this time due to demand no longer justifying the operation of all three container terminals.