Re-imagined trade routes are having a profound impact on truck driving opportunities as East Coast ports continued a dominant run through September. The Port of New York and New Jersey led all Atlantic and Gulf ports, posting a blistering 35 percent increase over its pre-pandemic cargo movement.
“There are no indications that this level of cargo, compared to what it has been in the past, is going to be reduced. The big picture is we expect the record levels of cargo to continue,” said Port of New York and New Jersey executive director Rick Cotton reportedly said.
Following the 2021 bottlenecks at the ports of Long Beach and Los Angeles, importers began to pivot to Gulf ports and later to the East Coast. Although some cargo ships experienced delays, the wait times paled by comparison to the California ports that saw more than 100 container vessels unable to dock.
With longshoremen and dockworker unions embroiled in testy contract negotiations, an increased number of shippers are taking advantage of the improved Atlantic and Gulf port infrastructure. Industry insiders are beginning to believe the substantial gains made at the Port of New York-New Jersey may be at a tipping point.
“The fact that the Port of New York and New Jersey have outpaced Los Angeles for not one, but two consecutive months is big news,” Josh Brazil, vice president of supply chain insights at Project44, reportedly said. “It demonstrates the degree to which we see a serious longer-term shift among shippers to diversify their supply chain routes to mitigate risk.”
By contrast, volume at the Port of Los Angeles has reportedly plummeted. Fear of a dockworkers strike, the AB5 law’s elimination of independent truckers, and the nation’s highest diesel prices have made California less attractive.
Container volume ticked down as the Port of Los Angeles handled 15 percent fewer TEUs in August 2022 than in the same period in 2021, and imports were reportedly down by 17 percent. September saw further year-over-year decreases by 21 percent, with imports down 27 percent. Port officials appear to be trying to buoy optimism, pointing out that the port system posted record volume in January, and is still above 2021 levels.
“Despite what will likely be a soft ending to 2022, we are on track to have the second-best year in our history,” Port of Los Angeles Executive Director Gene Seroka reportedly said. “More importantly, the cargo backlog that began last year has been nearly eliminated due to the diligent, combined efforts of our supply chain partners.”
But given the infrastructure advancements made along the Gulf and Atlantic, California’s import-export ship may have sailed. The Port of Mobile is enjoying record growth, as are Savannah, Charleston, Norfolk, and New York-New Jersey. Lower fuel costs, shorter wait times, and direct highway and freight rail opportunities appear to offset the shorter sea voyages to the West Coast. Although New York-New Jersey has seen a spike in volume, wait times remain under three days on average.
“We’re seeing export container dwell times rise across the board in the U.S., especially in the Southeast and Gulf ports,” Brazil reportedly said. “All West Coast ports are also seeing exports dwell for nearly six days, likely due to the cutback in service capacity as carriers scramble to stave off dropping rates.”
The improved logistical and cost-effective landscape along the Eastern Seaboard appears to have the Port of New York-New Jersey vying for the country’s top spot. That, in turn, means more freight-hauling opportunities as well.
Sources: cnbc.com, bloomberg.com
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