US ports are handling unprecedented levels of retail and furniture imports as the COVID-19 pandemic continues to drive consumers’ buying habits. This great influx of cargo has shown the world the importance of a fluid supply chain and spotlighted issues in the supply chain that must be addressed.
For starters, the US needs significantly more distribution center capacity to handle the flow of goods. Ports need to be a player in assuring that exists. SC Ports works with retailers to support the development of near-port transloading facilities and import distribution centers (DCs), such as Walmart’s nearly 3-million-square-foot DC, set to move goods through the Port of Charleston starting in early 2022.
The sustained, record-breaking cargo levels also highlight how critical both chassis and trucking capacity are to keeping supply chains fluid. SC Ports is preparing to launch its own chassis pool in early 2023 to improve the safety, reliability, and availability of equipment for shipping lines, motor carriers, and cargo owners. To help solve the trucking capacity and labor shortage, it will also be critical to create a workforce pipeline and pay drivers well.
Running a port is an infrastructure business. This has always been true, but never more so than during this unbelievable period of growth and supply chain challenges.
Capacity is the new port currency. SC Ports has invested more than $2 billion in recent years to enhance existing infrastructure — including modernizing Wando Welch Terminal and expanding rail-served Inland Port Greer — and by opening a new container terminal, the Hugh K. Leatherman Terminal.
With the opening of the $1 billion Phase One of Leatherman Terminal in March 2021, SC Ports became the only port in the country with new terminal capacity. Phase One adds 700,000 TEU of annual capacity to the Port of Charleston when it is most needed on the East Coast; full buildout will yield 2.4 million TEU of capacity.
Ports must plan for and strategically invest in infrastructure, as cargo will continue to route to those gateways offering capacity, efficiency, and fluidity. The authority’s strategy of planning infrastructure to accommodate growth will lead to continued success at SC Ports as shippers diversify their port gateways.