Why is South Carolina Ports shutting down the Leatherman Terminal?

According to SC Ports, the shutdown is driven by an uncertain trade outlook in the second half of 2026 and the need to reduce operating costs. Consolidating container volumes at Wando Welch and North Charleston terminals is more cost-efficient than maintaining current volumes across all three facilities. The port cited softer demand and industry headwinds as key drivers, not labor disputes or capacity constraints.

Is this shutdown permanent?

No. SC Ports explicitly described this as a 'short-term pause.' The Leatherman Terminal remains part of the port's long-term growth strategy, with expansion from 700,000 TEUs to 2.4 million TEUs at full buildout still underway. The consolidation is a tactical response to near-term demand weakness.

How will this affect inland rail and drayage networks?

Container cargo that would have moved through Leatherman's intermodal chain will now route through Wando Welch and North Charleston. This will require adjustments to rail schedules, drayage patterns, and inland ramp timing. The Navy Base Intermodal Facility connection to Leatherman remains a separate longer-term initiative, so inland rail networks will need to adapt to the consolidated terminal footprint in the near term.

What terminals will handle container traffic during the pause?

Container operations will be consolidated at Wando Welch and North Charleston terminals. SC Ports stated these facilities have sufficient capacity to manage short-term growth during the Leatherman pause.

When does the shutdown take effect?

The temporary pause at Leatherman Terminal is scheduled to begin August 1, 2026. SC Ports has not announced a specific end date for the pause.

Demand Planning

High Impact

Charleston Port Pauses Leatherman Terminal Amid Trade Uncertainty

Jun 26, 2026

Get tomorrow's supply chain signal

Daily supply-chain brief. Free, unsubscribe anytime.

The signal

South Carolina Ports announced a temporary operational pause at the Hugh K. Leatherman Terminal in North Charleston, effective August 1, 2026, citing weakening trade demand in the second half of 2026 and the need to reduce costs. Rather than maintaining current volume levels at the terminal, the port will consolidate container operations at the Wando Welch and North Charleston facilities, which together have sufficient capacity to manage near-term growth. S.

container ports about freight demand softening and marks a strategic pivot toward cost efficiency over capacity expansion in the near term. The Leatherman Terminal had just resumed operations in 2024 following a labor dispute and was positioned as a key growth vehicle for Charleston's capacity roadmap. However, the current pause reflects softer market conditions rather than operational or labor constraints. The consolidation will necessitate routing adjustments for the inland rail network, particularly affecting drayage patterns and rail schedule timing around the remaining active terminals.

While SC Ports maintains that this is a short-term measure, the decision underscores mounting pressure on East Coast ports to balance expansion investments with near-term demand realities. For supply chain professionals, this development carries dual implications: it reflects a broader industry trend of demand caution entering H2 2026, and it signals that even recently-expanded or upgraded terminals may face temporary idling if market conditions deteriorate. Shippers relying on Charleston for intermodal connectivity should monitor adjustments to rail departure schedules and plan drayage strategies around the consolidated terminal footprint.

#container-terminal-shutdown

#charleston-port

#trade-uncertainty

#capacity-consolidation

#demand-softening

#intermodal-disruption

#2026-trade-forecast

#port-operations

#supply-chain-resilience

#cost-management

Frequently Asked Questions

What This Means for Your Supply Chain

Simulation Suggestion

this month

What if Charleston consolidation increases drayage costs by 15% due to longer inland routing?

Model a scenario where consolidating three terminals into two increases average drayage distances and per-move costs by 15%. Apply this cost increase to all containerized cargo transiting Charleston over the next 6 months, and simulate impact on total logistics spend and origin-to-destination margin erosion for key customer segments.

Run this scenario

Simulation Suggestion

strategic

What if trade demand remains weak beyond August and Leatherman stays offline for 6+ months?

Extend the pause from a short-term (1-2 month) event to a structural 6-month idling of Leatherman. Simulate cumulative impacts on Charleston's competitive positioning vs. Savannah and Port of New York/New Jersey, including lost throughput, reduced pricing leverage, and potential volume migration to rival gateways.

Run this scenario

Simulation Suggestion

immediate

What if inland rail operators need to reschedule departures due to consolidated terminal operations?

Model a scenario where rail carriers operating out of Charleston must adjust departure schedules and consolidation windows by 4-8 hours to accommodate the new two-terminal operational footprint. Simulate ripple effects on inland ramp timing, intermodal dwell, and service level commitments for shippers with strict transit-time windows.

Run this scenario

Go deeper:

Supply Chain Simulation: A Guide for Operators

What discrete-event, agent-based, and Monte Carlo simulation actually do, in plain language for supply chain leaders.

Get the daily supply chain briefing

Top stories, Pulse score, and disruption alerts. No spam. Unsubscribe anytime.

The signal

Frequently Asked Questions

What This Means for Your Supply Chain

Related Articles