Truckers running loads along the Eastern Seaboard can anticipate increased work and the ability to charge a premium.
The record-setting California port logjams dominating truck news cycles are prompting more cargo ships to travel through the Panama Canal and offload from the Atlantic. Ports in New York/New Jersey, Virginia, Charleston, and Savannah, among others, are already experiencing higher volume.
The Port of Savannah, America’s fourth-largest, temporarily struggled with 20-26 cargo ships anchored and waiting to offload in late September. The sudden pivot away from the ports of Long Beach and Los Angeles apparently caught logistics managers unprepared. But officials in the Peach State quickly responded to prevent the type of California bottlenecks that left upwards of 80 ships idling.
“We’re building facilities. We’re leasing more facilities. We’re hiring truck drivers. And warehouse employees,” Port City Logistics director Jed Young reportedly said. “Retail season is coming up. So, we’re going to be doing a lot of retail items. We do a lot of food-grade products. And all of that stuff never stops moving.”
Freight and logistics professionals do anticipate rising container and other cargo volumes spiking all along the East Coast, as the gift-giving season approaches. The efforts by major retailers such as Walmart and Target to reroute ships in an effort to get ahead of consumer demand appear to be creating at least short-term offloading challenges. But many agree that the splashy headlines about toy shortages and other back-ordered products have caused something of a buying and hoarding frenzy that should wane.
“Business is booming, and e-commerce is booming. We have seen this transition from just-in-time in supply chains to just-in-case, and that is significantly changing our environment. Because of all this extra freight being imported, it’s creating a backlog from the ship side to the dockside to warehouses and across the whole supply chain,” Georgia Ports Authority director Griff Lynch reportedly said.
Although consumers will likely see another bout of added inflation due to increased rerouting costs, East Coast ports are unlikely to experience the historic supply chain disruption experienced in California. Ports in Florida, and South Carolina, for example, are not currently operating at maximum capacity. Even New York/New Jersey, the country’s third-largest port, has wiggle room to offload cargo. Officials in Florida have put out a colorful statement indicating their ports have tremendous flexibility.
“Our seaports are the solution to ensure the cargo shipping logjam doesn’t become the Grinch that stole Christmas,” the Florida Ports Council stated in a cleverly-worded press release.
South Carolina recently announced a plan to invest $2.6 billion into its port infrastructure that will reportedly double its container capacity. Part of the Charleston plan involves deepening the harbor so that cargo ships can dock and offload with greater frequency.
Consumers should expect to pay more for goods and materials, but rerouting cargo ships to East Coast ports appears to be a viable solution.
Sources: theloadstar.com, bloomberg.com
Lou says
We shall see!
Tony Reid says
Nothing more than a politcal statement from Florida ports and DeathSantis. Florida had it’s opportunity to seize greater port tonnage 15 years ago, but failed to act. Florida’s freight rail lines from the Tampa area north along the Big Bend Area were abandoned years ago.
Savannah made the most of the opportunity! As the Panama Canal was widened, Savannah planned and executed with great urgency.
Shorn says
A classic case of too little to late. The I-95 corridors was always the solution but shipping companies are always trying to save a buck. Now they are begging for help. You Intermodal guys, now is your chance. That $4/mile load that they promised you is now here. Act accordingly.