There continues to be strong uncertainty in the global market. While the U.S. economy continues to slowly rebound, most of the rest of the world’s fiscal struggles persist. When container rates deteriorate, it places a much larger burden on ports to provide landside and waterside assets. Ocean freight rates need to provide a sustainable return on investment for shipowners. Ports, too, need adequate rates to provide the infrastructure to accommodate larger vessels. It all starts with ocean freight rates.
At the same time that we are seeing freight rates at their lowest levels in years, we are seeing some of our traditionally strong export countries treading water. Japan is entering its second recession. China’s GDP is hovering at about 7.5 percent, compared with 10 percent a few years ago. China’s increase of its middle class is coming at the expense of its manufacturing base, which is shifting to Southeast Asia. While more manufacturing coming back to the U.S. is certainly a positive, we need other markets to be strong for our exports.
Additional funding is needed for U.S. ports for dredging and harbor projects. Last year’s passing of a new Water Resources Reform Development Act (WRRDA) was a positive step. Now it needs to be funded. Prior to a WRRDA, there were lost opportunities for business growth and new jobs. Even with the passing of the WRRDA, we need to keep pressure on our congressional leaders to further increase funding for the operation and maintenance of our ports and channels, which are economic lifelines for our nation.
James J. White, Executive Director, Maryland Port Administration