Ports: Boxed in or Busting Out?

Major American ports finished 2018, and began 2019, setting monthly/annual container volume records, but White House trade talks, especially with China about tariff increases, has raised more questions than answers. Tariffs on Chinese goods are set to increase to 25 percent, from 10 percent, unless there is an agreement reached. The American Association of Port Authorities (AAPA) data indicates trade sanctions will impact 9 percent of the total volume of products imported and exported to the U.S. Trade with China accounts for 16 percent of items moved in and out of California ports, and 13 percent in Georgia. Despite the political/economic disputes, there’s a good deal to be positive about at the nation’s collection of boxports, and infrastructure development. The U.S. Department of Transportation is projecting that total freight-tons moving on the nation’s transportation network will grow 49 percent over 30 years, while the value of freight will almost double and despite the prospect of a trade war will be eclipsed by the inertia of growth. A quick look at some of the nation’s busiest boxports is eye-opener: Los Angeles, the nation’s busiest port in TEUs and fourth in value began 2019 on an accelerated pace with a record 852,000 containers in January, a 5.4 percent increase over January 2018 when it moved nearly 809,000 TEUs. In 2018, the Port of New York and New Jersey handled more than 7M TEUs for the first time in its history. The Port of Houston finished on a record note, moving 2.7M TEUs in 2018, up 10 percent over 2017. January 2019 has seen a slight drop in TEU volume. New Port Houston Chairman Ric Campo wants to fast-track the widening and deepening of the Houston Ship Channel. The Georgia Port Authority, which operates the Port of Savannah, reported the movement of 430,000 TEUs in January, up more than 90,000 TEUs from 2018. Last year closed with a record 4.35M TEUs. Recently, Savannah handled more total containerized cargo and intermodal rail volume than any March on record. The Port of New Orleans (Port NOLA) moved more containers in 2018 than at any time in its history, totaling 591,253 TEUs, up 12.3 percent from last year. The numbers include a 58 percent surge in containers moved by barge on the Port’s growing container-on-barge service operated in conjunction with the Port of Greater Baton Rouge. A Marad grant of $3.1M will support the barge service, allowing them to purchase purpose-built vessels that will increase the viability of the service. Also, the New Orleans Public Belt Railroad, which the Port acquired in 2018, realized a 15 percent growth in intermodal cargo and new connections with domestic markets. (Source: Maritime Logistics 06/03/19)