In many respects, ports across North America are a bellwether for the health of the overall economy. So when the current tidal wave of difficult economic news was still a ripple, many ports were seeing and feeling the effects before other industries in the broader economy.
Imports and exports are driven by demand. When people aren’t buying things and sales are down, the shipping industry suffers. The good news is that the U.S. economy should turn around. Maybe it will be a year, maybe longer. But an upswing in the U.S. housing market and the broader economy will have a positive effect on our industry.
The global shipping industry remains highly competitive. You have to fight hard to win and keep business. This was the case before the current economic downturn and will only be exacerbated by current conditions. The successful ports of today and of tomorrow are those that have improved efficiencies in every part of their operations and that have invested wisely in infrastructure.
Looking ahead, we must continue to market our ports in what will again be the hottest markets in the world. Southeast Asian countries and China, for instance, will not struggle economically for long. And when things return to business as usual, we need to be ready to provide the supply-chain services they will need. But make no mistake, only those ports with the capacity and infrastructure to handle the business will reap the rewards.
So, being a bellwether means having to face up to the tough times first. The silver lining is that we may enjoy the benefits of a better economic tide before its effects are felt more broadly.