Ports contribute to a strong US economy by providing access to commodities used to manufacture many of the goods we use every day. Three timely port topics include possible changes to trade policy, carrier consolidation, and intermodal options.
Trade policy has been in the news, including the Department of Commerce’s consideration of possible tariffs or quotas on imported steel, which can be found in the cars we drive, appliances we use, buildings we occupy, and roads we traverse. Economists expressed concern about possible unintended consequences, including the potential for a trade war. Though no decisions have been made to date, ongoing uncertainties about the supply of imported steel continue to affect the market.
In 2016, imported steel accounted for 45 percent of all imports moving across facilities in the Port of New Orleans’ jurisdiction as well as 35 percent of the port’s cargo-related revenue. In May 2017, while addressing the American Institute for International Steel, the port joined opponents of the steel tariffs in offering remedies such as fair and open trade policies, combined with appropriate incentives for US steel producers as the best solution to promote all sectors of the US economy.
Ocean carriers have been actively seeking increased efficiencies. Mega-alliances became fully operational in 2017 and represent nearly 80 percent of global container trade and 90 percent of container capacity on major trade routes. Strategically located ports offering inland connectivity and highly efficient terminal operations appeal to the alliances.
Lastly, carriers and shippers want options and seamless logistics integration between river, rail, and road. Container-on-barge shuttle service is gaining momentum and customers by maximizing waterborne commerce along inland waterways and incorporating on-dock rail access with trucking capabilities.