Despite all of the expert comment a year ago, no one could have anticipated the havoc wreaked by port congestion, particularly in U.S. West Coast harbors, where the shortage of trucks and drivers and various labor issues have impacted the bottom lines of virtually every sector in international trade.
The priority now is to work on clearing up the components of the 2014 issues that obstructed cargo movements in most U.S. waterborne trade routes. Data show that container growth is anticipated to continue, perhaps more than double that of the gross domestic product. This will not only clog existing terminals already challenged by mega-ships, but will put greater constraints on the waterfront space. According to Clarkson’s, container traffic over the next decade will grow from 692 million TEU lifts in 2014 to 1.15 billion TEU lifts by 2024.
Containers remain the fastest-growing shipping mode, and during the downturn in the recent recession, few U.S. ports took advantage of the opportunity to invest and develop the infrastructure that would be there for the ongoing expected surge. Congestion charges are sought to help ocean carriers meet the burgeoning financial strain of delays and service integrity. In addition, with 2015 testing the strength of the newest joint services, expected reduced costs might come under great pressure. According to Drewry Maritime reports, “If U.S. terminals could improve this position, then it would help to avoid or defer the onset of any future congestion problems.”
With U.S. terminal productivity below the world average, ports must work on boosting efficiency. Ports and terminal operators should work with state and local communities to develop the needed infrastructure improvements to facilitate faster container processing.
Jack Yen, Chairman, Evergreen Shipping Agency (America)