South Carolina Ports (SC Ports) will temporarily halt container operations at its Hugh K. Leatherman Terminal starting August 1. This marks another challenge for the $1 billion facility, which has struggled to find its footing since opening over five years ago.
On Thursday, the port authority announced it will consolidate container activities at its Wando Welch and North Charleston terminals. This decision comes as the industry deals with declining cargo volumes, trade uncertainties, and other market challenges.
“We are collaborating with our maritime partners on this decision to achieve long-term, sustainable growth,” SC Ports President and CEO Micah Mallace stated. “Our goal is to retain existing business and attract new clients to Charleston.”
SC Ports mentioned that the other terminals have enough capacity to manage current volumes while continuing to provide the dependable service customers expect from the Port of Charleston.
This decision occurs amid growing uncertainty for U.S. ports due to changing trade patterns and reduced import demand.
“As an economic driver and job creator for South Carolina, we are committed to offering exceptional service to our customers and driving growth,” Mallace added. “The maritime industry—and the many companies and workers connected to our port—rely on us, and we intend to deliver for them.”
This announcement is the latest development in the rocky history of Leatherman Terminal, which was initially seen as a key part of Charleston's future expansion.
When the terminal opened in April 2021, it was celebrated as the first new container terminal in the U.S. since 2009. The initial phase increased capacity by 700,000 TEUs annually, featuring a 1,400-foot berth designed to accommodate container ships that can carry up to 20,000 TEUs. Once fully developed, the terminal is expected to add 2.4 million TEUs annually, effectively doubling Charleston's capacity for handling containers.
However, the terminal has rarely functioned as planned.
Just months after its opening, Leatherman became the center of a significant labor dispute between SC Ports and the International Longshoremen's Association about the staffing of ship-to-shore cranes. This conflict severely limited operations for more than three years while legal issues were resolved in federal courts and labor regulators.
The dispute was finally settled in mid-2024, allowing SC Ports to reopen the terminal and start regular weekly container services from Asia. At that time, port officials described the reopening as a crucial milestone that would enhance Charleston's position in the rapidly growing Southeast port market.
Now, less than two years later, SC Ports is once again pausing operations at the terminal, citing that demand no longer supports running all three container terminals.
The port authority has framed this decision as a temporary consolidation, not a permanent closure, noting that Wando Welch and North Charleston can adequately handle current and expected cargo volumes. SC Ports did not provide a timeline for when Leatherman Terminal will resume operations.