With the global shipbuilding orderbook surging at a 27% year-over-year rate – the fastest pace in nearly two decades – U.S. ports are preparing for an unprecedented tidal wave of cargo throughput. While logistics hubs are scrambling to scale up their terminal tractor and forklift fleets to manage this growth, they are hitting an often invisible roadblock: the local electrical grid.

Read also: Port Electrification Could Cut 10% of Shipping Emissions

The backlog of new vessels on order is expanding at nearly seven times the speed of the active merchant fleet. As ports move to decarbonize the heavy-duty equipment required to handle this volume, they are running into a physical bottleneck. The “grid lag” required to secure utility interconnections for commercial fleet charging has tripled, now averaging 18 to 36 months in North America. This delay is driven by a combination of transformer shortages and intense competition for utility capacity from AI data centers.

If ports rely solely on an “electrification-only” strategy to meet this shipping boom, they risk a scenario where they possess the infrastructure to handle the cargo but lack the power to move it leaving millions of dollars in equipment assets stranded while waiting years for grid upgrades.

The Pragmatic Bridge

For terminal operators, the question is no longer just how to decarbonize, but how to maintain continuous uptime during an infrastructure transition. An “electrification-only” mandate can create a dangerous dependence on utility timelines that are currently outside of a port’s control. A more pragmatic approach involves using low-emissions, internal combustion technologies to achieve immediate, near-zero-emission targets and operational continuity.

Propane can serve as a critical bridge, allowing ports to scale their operations immediately without waiting for the electrical grid to catch up. Propane provides a verified, measurable way to reduce carbon intensity today to meet current ESG/GHG reporting mandates without waiting for utility-scale electrical upgrades. Beyond emission reduction, this approach offers two distinct operational advantages that are vital for ports facing a shipping surge.

As hurricane seasons become more volatile, the fragility of standard power systems has become a top-tier operational risk. Pressurized, closed-loop propane fueling systems provide a significant continuity advantage. Unlike diesel, which is highly susceptible to water contamination, or electric systems, which face risks of damage and prolonged downtime from saltwater flooding, propane infrastructure is naturally durable. This reliability ensures that even when the grid is compromised or local conditions are severe, the equipment remains operational.

Propane offers a clear economic advantage in a volatile market. As port operators fight to win cargo contracts with thinning bidding margins, fuel cost predictability is a competitive necessity. Propane’s total cost of ownership (TCO) and price stability allow operators to manage their budgets with greater certainty compared to the fluctuating costs of commercial electricity or the global price volatility of diesel. By integrating propane-powered forklifts and terminal tractors, operators can maintain the operational flexibility needed to handle higher container counts while protecting their bottom line.

If U.S. ports cannot move cargo because they are waiting on the electrical grid or because severe weather has impacted port infrastructure, while ports in other regions keep moving, U.S. trade suffers. Ultimately, energy diversification is a national trade security issue, not just a site-level operations issue.

The current shipping surge is an opportunity, but it is also a test of infrastructure readiness. By diversifying their energy strategy now, port authorities can ensure that they are not just preparing for the future, but actively managing today’s challenges. 

Author bio

Jim Bunsey, Senior Manager Business Development, Propane Education & Research Council (PERC), where he focuses on energy infrastructure and resilience.