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BEHOLD, IT’S AMERICA’S TOP 50 POWER PORTS

ports

BEHOLD, IT’S AMERICA’S TOP 50 POWER PORTS

Some ports excel in imports, some in exports, others in domestic trade and still more in international trade. America’s Top 50 Power Ports are the highest ranked in total trade, however.

 

Based on their U.S. port ranking by cargo volume in 2018, the fabulous fifty are:

1. South Louisiana, LA

Total tons: 275,512,500

Stretching 54 miles along the Mississippi River, South Louisiana is the largest tonnage port district in the western hemisphere.

2. Houston, TX

Total tons: 268,930,047

Handling about 70 percent of all the container cargo through the Gulf of Mexico coast, the Houston channel serves nearly as many calls as Los Angeles, Long Beach and New York/New Jersey combined.

3. New York/New Jersey

Total tons: 140,281,992

The gateway to one of the most concentrated consumer markets in North America, the Port of New York and New Jersey is the largest on the East Coast.

4. Beaumont, TX

Total tons: 100,244,231

The world-class intermodal transportation facility is served by three class one rail carriers, located within two miles of Interstate 10, and situated on a deep-water channel with a 40-foot draft.

5. Corpus Christi, TX

Total tons: 93,468,323

Positioned on the western Gulf of Mexico with a 36-mile, 47 foot (MLLW) deep channel, the port is a major gateway to international and domestic maritime commerce, with railroad and highway network connectivity via three class one rail carriers and two major interstate highways.

6. New Orleans, LA

Total Tons: 93,332,543

A modern multimodal gateway for global commerce, the port’s competitive edge comes from an ability to deliver seamless, integrated logistics solutions between river, rail and road.

7. Long Beach, CA

Total tons: 86,536,154

The second-busiest container seaport in the U.S. is the premier American gateway for trans-Pacific trade and a trailblazer in innovative goods movement, safety, environmental stewardship and sustainability.

8. Baton Rouge, LA

Total tons: 82,234,811

Strategically located on the Mississippi River, the Port of Greater Baton Rouge is a major driver of the state’s economy, ranking among the U.S. top ports in total tonnage.

9. Hampton Roads, VA

Total tons: 71,774,349

The Port of Virginia’s network of terminals can process more than 4 million containers on an annual basis, serving ultra-large containers vessels arriving from across the Atlantic, inland barge service traveling up the James River as well as rail as the No. 1 in volume on the East Coast.

10. Los Angeles, CA

Total tons: 67,806,137

Billed as “America’s Port” (it’s registered!), the nation’s premier gateway for international commerce is the busiest seaport in the Western Hemisphere, handling diverse commodities from avocado to zinc.

11. Mobile, LA

Total tons: 58,635,622

Alabama’s only seaport to ensure economies of scale and competitive rates for mining, manufacturing, agribusiness and retail/distribution shippers, Mobile just watched the ink dry on a pact that will modernize facilities and deepen and widen the shipping channel.

12. Lake Charles, LA

Total tons: 56,908,344

The deepwater seaport on the Calcasieu Ship Channel, north of the U.S. Gulf Coast, opened in 1926 and today is the 12th-busiest port district in the nation, based on tonnage, as ranked by the U.S. Army Corps of Engineers.

13. Plaquemines, LA

Total tons: 56,850,137

Located at the mouth of the Mississippi River on the Gulf of Mexico, the Port of Plaquemines is about 20 miles south of New Orleans.

14. Baltimore, MD

Total tons: 44,778,259

The Helen Delich Bentley Port of Baltimore handled a new record of 43.6 million tons of cargo in 2019, including more than 11 million tons of general cargo at the state-owned public terminals for the first time ever. The number of vehicles (857,890) topped all  U.S. ports for the ninth straight year.

15. Texas City, TX

Total tons: 42,682,311

The privately-owned port, whose shareholders include Union Pacific Railroad and BNSF Railway, is the 15th largest port in the country and fourth-largest in Texas.

16. Savannah, GA

Total tons: 41,273,947

Savannah joins fellow deepwater port Brunswick and inland terminals in Chatsworth, Bainbridge and Columbus to serve as Georgia’s gateway to the world, especially for raw materials and finished products bound for, well, all over the globe.

17. Port Arthur, TX

Total tons: 39,851,706

The ultimate direct transfer facility for international cargo shipping is positioned on the Gulf of Mexico, where it competitively handles any type of commodity.

18. Cincinnati, OH-Northern Kentucky

Total tons: 38,534,187

Part of the Ohio-Mississippi River Waterway on the banks of the Ohio River, the port is at the center of a large metropolitan area that occupies parts of Ohio, Indiana and Kentucky.

19. Louis, MO/IL

Total tons: 37,426,710

The Port of Metropolitan St. Louis is 70 miles long, situated on both sides of the Mississippi River, and is the 19th largest U.S. port according to the 2018 US Army Corps data. The northernmost ice- and lock-free port on the Mississippi, the port is served by six class one rail carriers, seven Interstates and two international airports.

20. Duluth-Superior, MN/WI

Total tons: 35,102,200

Long known as the Great Lakes “bulk cargo capital,” the port accommodates the maritime transportation needs of a wide range of industries, ranging from agriculture, forestry, mining and manufacturing to construction, power generation and passenger cruising.

21. Huntington – Tristate

Total tons: 34,245,342

Centered on the Ohio River in Huntington, the Port of Huntington Tri-State is the largest inland port in the U.S. and the largest river port in West Virginia.

22. Tampa, FL

Total tons: 31,006,487

Serving container ships, tank ships and cruise lines, Port Tampa Bay is the largest port in Florida and only 25 sea miles from the Gulf of Mexico.

23. Pascagoula, MS

Total tons: 27,358,043

The deepwater port on the southeastern coast of Mississippi consistently ranks in the top tier of ports in the nation related to foreign trade. Primary exports include frozen foods, general cargo, grains, machinery, forest products, fertilizer and petroleum products.

24. Richmond, CA

Total tons: 27,255,061

With its roots in petroleum and liquid bulk cargos, Richmond has expanded its dry bulk, breakbulk and containerized cargo handling capabilities and has increased its automobile processing facilities. Today, Richmond ranks No. 1 in liquid bulk and automobile tonnage among ports on San Francisco Bay.

25. Philadelphia, PA

Total tons: 26,656,373

Located on the Delaware River in Philadelphia, the port’s publicly owned marine terminals are managed by the Philadelphia Regional Port Authority (a.k.a. PhilaPort, an agency of the Commonwealth of Pennsylvania that is responsible for six other ports that combined create one of the largest shipping areas of the country.

26. Seattle, WA

Total tons: 26,046,093

The port keeps Washington state connected through aviation, maritime, logistics, trade and travel services. Its scope includes Seattle-Tacoma International Airport (Sea-Tac), and in 2014 an alliance was formed between the ports of Seattle and Tacoma.

27. Valdez, AK

Total tons: 25,807,750

Valdez is a fishing port, both for commercial and sport fishing, but freight also moves through bound for the interior of Alaska. Valdez is connected to the inland by the Richardson Highway, while also serving as a port of call in the Alaska Marine Highway ferry system.

28. Freeport, TX

Total tons: 25,446,078

Billed as one of the most accessible Texas ports “by land and by sea,” Port Freeport is administered as an independent governmental body authorized by an act of the Texas Legislature in 1925. Located about 60 miles south of Houston, the port is accessible via state highway 36, and highway 288.

29. Port Everglades, FL

Total tons: 25,022,351

Port Everglades is one of Broward County’s leading economic engines, generating nearly $32 billion in economic activity annually while supporting 13,000 local jobs for people who work at the Port and for companies that provide direct services.

30. Charleston, SC

Total tons: 24,822,636

The South Carolina seaport’s facilities span three municipalities—Charleston, North Charleston and Mount Pleasant—with five public terminals handling containers, motor vehicles and other rolling stock, non-containerized goods and project cargo. Privately owned and operated facilities at the port handle bulk commodities such as coal, steel and petroleum.

31. Portland, OR

Total tons: 23,228,424

‪Oregon’s largest port ships more than 11 million tons of cargo a year, including grain, minerals, forest products, and autos. The port partners with the region’s businesses and shippers to develop custom shipping solutions that deliver results.

32. Tacoma, WA

Total tons: 22,849,184

Seattle’s Northwest Seaport Alliance partner jointly manages marine cargo operations to strengthen the Puget Sound gateway. Tacoma is strategically located in the northwest corner of the U.S., where the focus is on efficiency, reliability, and customer service.

33. Pittsburgh, PA

Total tons: 21,567,015

The port spans a 12-county area, encompassing essentially all 200 miles of commercially navigable waterways in southwestern Pennsylvania, including the three major rivers in this region: the Allegheny, the Monongahela, and the Ohio.

34. Oakland, CA

Total tons: 19,373,876

The first major port on the Pacific coast to build terminals for container ships, Oakland went on in 2002 to develop an intermodal container handling system to handle a high volume of cargo.

35. Jacksonville, FL

Total tons: 17,999,036

JAXPORT is a global gateway to the nation’s third-largest state, serving dozens of ocean carriers and offering competitive transit times to 140 ports in more than 70 countries. JAXPORT boasts of 100 trucking firms and 40 daily trains via two class one rail carriers and a regional rail line.

36. Two Harbors, MN

Total tons: 17,208,207

You will mostly see “lakers” (ships that travel within the Great Lakes) in Twin Harbors’ Agate Bay, but more and more there are also ocean-going vessels arriving to load iron ore that was delivered by rail from mines in northern Minnesota.

37. Chicago, IL

Total tons: 16,866,792

Located on the Chicago River on Lake Michigan, the port has a rich history as a center of commercial shipping, with fur traders choosing it as a distribution point for their products. Operated by the Illinois International Port District, Chicago consists of various port facilities, including a terminal with 100 acres of warehouses and facilities.

38. Boston, MA

Total tons: 16,163,552

The major seaport in Boston Harbor and adjacent to the City of Boston is the largest port in Massachusetts as well as one of the principal ports on the East Coast. Most cargo handling facilities are in the Boston neighborhoods of Charlestown, East Boston, South Boston and in the neighboring city of Everett.

39. Paulsboro, NJ

Total tons: 16,121,201

The Paulsboro Marine Terminal, the first major port to be constructed on the Delaware River in more than 50 years, has processed more than 4 million tons of imported steel slabs since it opened in 2017. The second phase of construction is scheduled for completion in 2021. At full build-out, the new facility will feature three berths on the river and a barge berth on Mantua Creek.

40. Kalama, WA

Total tons: 15,796,458

Sitting on the Columbia River in Southwest Washington, immediately off of Interstate 5, the port is just 30 miles northwest of Portland and 120 miles south of Seattle. Kalama’s industrial area includes five miles of riverfront property adjacent to the river’s 43-foot, federally maintained deep-draft navigation channel.

41. Honolulu, HI

Total tons: 15,181,890

The gateway to Hawaii is less than 2 miles from the major steamship lines and carriers. The 3-acre Honolulu Freight Service terminal services all domestic and international inbound cargo, utilizing a 60,000-square-foot facility with 14 dock high doors, ramp access and conveniently located on North Nimitz Highway.

42. Detroit, MI

Total tons: 14,837,762

Located along the west side of the Detroit River, Michigan’s largest seaport consists of multiple marine terminals handling general, liquid, and bulk cargo as well as passengers. The Port of Detroit’s single most valuable commodity is steel, and the largest commodity handled by tonnage is ore. Other important commodities handled at the port include stone, coal, and cement.

43. Longview, WA

Total tons: 13,738,906

Operating since 1921, the port has eight marine terminals and waterfront industrial property spanning 835 acres on the deep-draft Columbia River, 66 miles from the Pacific Ocean in southwest Washington state.

44. Marcus Hook, PA

Total tons: 12,205,883

The Delaware Bay seaport has an anchorage depth of 11 to 12.2 meters, a cargo pier depth of 9.4 to 10 meters, and an oil terminal depth of 11 to 12.2 meters.

45. Indiana Harbor, IN

Total tons: 11,910,541

July 17, 2020, marked the 50th anniversary of the grand opening of the Port of Indiana-Burns Harbor, the beginning of an organization that connects America’s heartland to the world and provides a stimulus to the state’s economy.

46. Cleveland, OH

Total tons: 11,778,910

One of the largest ports on the Great Lakes, the port is responsible for more than 20,000 jobs and $3.5 billion in annual economic activity. The Port of Cleveland is the only local government agency whose sole mission is to spur job creation and economic vitality in Cuyahoga County.

47. San Juan, PR

Total tons: 11,737,059

The port’s cargo facilities are located on the southern portion of San Juan Bay. At least eight cargo terminals–five in the Puerto Nuevo district and the rest in neighboring Guaynabo—have immediate access to Puerto Rico’s vast expressway system and several major local routes.

48. Memphis, TN

Total tons: 11,055,740

The “International” Port of Memphis the second-largest inland port on the shallow draft portion of the Mississippi River, and the fifth largest inland port in the nation.

49. Anacortes, WA

Total tons: 11,038,886

One of only eight deepwater ports in Washington state, Anacortes can accommodate Panamax vessels with additional dredging. The port—which was ranked 49th among U.S. ports and fifth among Washington ports in total trade by cargo tonnage during 2016—is known for its diverse, highly skilled maritime sector workforce.

50. Vancouver, WA

Total tons: 10,527,470

One of the major ports on the Pacific Coast, Vancouver (of Washington, not British Columbia) boasts as competitive strengths available land, versatile cargo handling capabilities, vast transportation networks, a skilled labor force and an exceptional level of service to its customers and community.

vessel

HONG KONG SEAPORT ALLIANCE WELCOMES THE WORLD’S LARGEST CONTAINER VESSEL

Despite the political turmoil gripping Hong Kong, the Hong Kong Seaport Alliance (HKSPA) welcomed HMM GDANSK, the world’s largest container vessel, on its July 12 maiden call to Hong Kong at Kwai Tsing Container Terminal 7.

HMM GDANSK , which is one of the twelve 24,000-TEU class of mega vessels of HMM Co., Ltd., the vessel features a length of 1,312 feet, a width of nearly 201 feet and a maximum capacity of 23,964 TEU. Since June, the vessel has operated THE Alliance Far East Europe 3 service that connects major ports in China, Asia and Europe.

“We are excited to welcome the world’s biggest vessel on its maiden call at such challenging times,” said Leonard Fung, managing director of Hongkong International Terminals (HIT), upon the HMM GDANSK’s arrival.

“This is a momentous event for Hong Kong’s maritime industry and HIT, signifying a vote of confidence in our offering and allowing us to capture future opportunities.”

The vessel is billed as being equipped with the world’s most advanced DS4 (DSME Smart Ship Platform), ECDIS (Electronic Chart Display and Information System), monitoring system and smart navigation system. In response to the new International Maritime Organization’s environmental regulations, HMM GDANSK has installed scrubbers to reduce its sulfur emissions.

trends

Global Shipping Trends: What to Expect in 2020

Now that the fireworks are over and New Year’s resolutions are set, it’s time to prepare for global shipping in 2020. And that means looking at ongoing trends and changing regulations. One thing’s for sure, freight forwarding never has a dull moment.

Recapping 2019’s top global shipping disruptors

Before we jump into expectations for this year, let’s set the stage by looking at some of the top events in 2019 that may have affected global shipping strategies around the world.

Geopolitical uncertainties

From the ongoing Brexit discussion to the China-U.S. trade war and the trade conflict between Japan and Korea, these and other disruptions caused serious challenges to the transportation industry.

Preparation for International Maritime Organization (IMO) 2020

While the latest revisions didn’t go into effect until January 1, 2020, preparation for the changing IMO requirements was well underway in 2019. The requirement to reduce sulphur oxide emissions from 3.5% to 0.5% was a drastic change that will likely continue to affect shipping costs and capacity availability.

E-commerce expectations

With the growth of e-commerce and high-tech products flooding our markets, air freight is a go-to mode of transportation for many shippers—any time of year.

To best understand how these and other mode-specific changes will affect your 2020 shipping year, let’s break them down by service.

Ocean service in 2020

In the past, ocean shipping followed the basic law of supply and demand. When demand increased, rates went up. When demand decreased, rates dropped. This often occurred regardless of carrier profitability. But that is changing, which could reshape expectations for 2020.

Carriers controlling capacity

Today’s ocean carriers are quick to withdraw capacity when demand changes. By adjusting the amount of equipment available, ocean carriers are better able to ensure demand remains tight enough to protect their profits. This is a successful technique because there are fewer ocean carriers than in the past, allowing for a quicker reaction when supply and demand shifts.

Increasing carrier costs

While ocean carriers can control capacity to help ensure rates remain compensatory, we can still expect some level of imbalance due to the IMO 2020 mandate, which increases carrier costs.

Driver and drayage capacity shortages

California Assembly Bill 5 (AB-5) went in effect on January 1, 2020, which limits the use of classifying workers as independent contractors rather than employees by companies in the state. This may affect the availability of the number of dray carriers in the busiest ports. This, in turn, can drive drayage costs up.

Air service in 2020

Last July, we posted about ongoing uncertainty in the air freight market. The good news is that air freight service has stabilized a bit since then. While we’re predicting a somewhat stable air freight market for the year, this could obviously change if there is some catalyst that changes the speed products need to come to market.

Stable demand expectations

We expect demand for air freight to remain stable for the time being. Many organizations continue to focus on managing expenses and are looking for cost-effective, efficient options for delivering on short timelines without breaking the budget.

Capacity to hold steady

Capacity will also likely remain stable. Most new capacity is coming in the form of lower deck. Pure freighter capacity will continue to move based on market yields that make sense from a carrier standpoint. There may be some capacity growth in off-market locations, based on passenger demand.

Customs compliance in 2020

It’s always smart to have a customs compliance program that aligns with your business goals, which is especially true this year. Customs and Border Patrol (CBP) has several customs changes slated to take place in 2020, and now’s the time to prepare. If you haven’t reviewed your customs program recently, our customs compliance checklist may help.

CBP moving away from ITRAC data

According to CBP, they will be eliminating Importer Trade Activity (ITRAC) reports in favor of the Automated Commercial Environment (ACE) system. If you don’t already have an ACE portal account, now is the time to get one to ensure all your customs data is available to you when you need it most.

CBP’s continued focus on compliance and enforcement

CBP will continue to scrutinize tariff classification and valuation in an increasing post-summary environment. As the United States Trade Representative (USTR) continues to provide exclusions, many importers will depend on brokers to submit refund requests via post summary corrections (PSCs) or protests. CBP often requires additional data and/or documentation to ensure that tariff classifications and valuations are correct. It is imperative that you maintain a high degree of confidence in your compliance program and can substantiate any post summary claims with CBP.

Increasing Importer Security Filing (ISF) penalties

Throughout 2019 we saw CBP issuing more ISF penalties for inaccurate and/or untimely submissions. This will likely continue and could become a growing issue in 2020.

Disruptors affecting the industry in 2020

While certain trends and regulations only directly affect a single mode or service, there are still plenty that affect freight forwarding in general. Looking at 2020, it’s probably safe to say that the following disruptors will continue to affect the year ahead.

Broadening of sourcing locations

While there may be an end in sight to some of the trade war uncertainties, the initiative to broaden sourcing locations beyond China will likely continue. Southeast Asia has already seen clear benefits of this and will likely continue to see manufacturing growth in 2020.

Switching sourcing strategies can also bring risks, including capacity availability, infrastructure support, and geopolitical stability. While China will continue to be the largest exporter into the United States, we simply cannot deny the trends that continue to show volume shrinkage from China.

Accelerated evolution of technology

Significant investment in technology and transportation platforms continues to accelerate across the industry. Beyond private equity groups, well-respected and established providers like C.H. Robinson are making investments that will reshape logistics. These growing technological investments will continue to create value across the supply chain.

While this opens new options for shippers and carriers alike, you may likely need to spend more time researching which technology option is the best fit for your own organization. After all, the right technology offers tailored, market-leading solutions that work for supply chain professionals and drive supply chain outcomes.

Prepare for the year ahead

Overall, 2020 will be a great year for strategizing. Continuous improvement efforts—including a close look at service levels and mode choices—will help reach your short- and long-term supply chain goals.

Looking for a provider that can help in the coming year? C.H. Robinson has a global suite of services backed by technology and people you can rely on that will make 2020 preparations smooth and effective. Connect with an expert today.

africa

RTM LINES PROVIDES INNOVATIVE SOLUTIONS TO AFRICA’S COMPLEX CARGO CHALLENGES

Headquartered in Norwalk, Connecticut, and boasting 38 years of trans-ocean transportation, RTM Lines continues its position as a major player among global ocean carriers. RTM Lines’ initial focus was rolling stock. Over the years the carrier added competence in breakbulk, FCL and project cargo management. Comprehensive global knowledge as well as in-depth understanding of local customs and regulations allow RTM Lines to provide innovative solutions to the complex cargo challenges facing Africa and the world today.

“We are niche players and have been doing this for many years,” says RTM’s Vice President Richard Tiebel, adding, “We know who the suppliers are, what their requirements are, how their operations work, and they know what RTM can do. They appreciate our thorough understanding of the business. Our in-house responsiveness and assistance with planning and preparation on difficult loads are what sets us apart.”

“At RTM, customers and suppliers will always be able to speak with a representative who has a working knowledge of their shipments from end to end. Our clients appreciate this and keep coming back to us with their projects and shipments year after year. I love what we do, it is an exciting industry, every shipment is unique, and ocean transport is essential to global trade.”

More recently, RTM has invested efforts in learning about untapped global opportunities, specifically within African infrastructure and breakbulk. Among the continents, Africa presents resources and opportunities in regions such as Ethiopia, Northern Mozambique and the Democratic Republic of Congo (DRC). However, these same regions don’t come without unique challenges to navigate. As RTM’s vice president, Tiebel understands that before tapping into this market as he knows one must first understand both its potential and roadblocks that are found within the political and economic environments.

“Right now, the DRC is sitting on some of the world’s largest natural cobalt resource, but because of political turmoil, it makes it that much harder to get this cobalt,” Tiebel observes. “Africa has a reputation of political/government instability, so if a project was approved by one political party, throughout the life of a project it could experience some instability or complete regime changes. Certainly, this will be a big risk because if a government changes overnight, this market could change overnight. You may have a license for an exploration of a resource, and then the next government could have a different plan.”

Furthermore, Tiebel shared the importance of local knowledge as a driver behind success in international markets, such as Africa. Reiterating the company’s core value of local expertise, RTM places an emphasis on all players involved in the shipping and trading process.

“Africa is showing the exponential growth of any other continent,” Tiebel says. “Right now, markets like Ethiopia have shown eight percent GDP growth, per annum. Taking a deep dive and analyzing what is driving this growth there are a number of things within urbanization, ICT (telecommunications) and the extractives industry (oil, gas and mining).”

Diving even deeper into the region’s shifts and opportunities, Tiebel highlights key areas that need attention and research for successful utilization and navigation.

“In the next four to five years, city populations will double. This places a lot of pressure for infrastructure and the need to develop. Right now, most cities weren’t built for these amounts of people. That in of itself is an amazing opportunity, because it places a need on power, water and sanitation, housing developments, and around that the buildup of industries for support to serve these populations.”

He continues: “Most governments couldn’t support fixed-line infrastructures, but now Africa is going through an ICT revolution. Now the private sector is supporting this revolution and its allowing Africans to conduct business in a normal way, using technology. Companies like Microsoft have been investing in some African tech sectors, to develop talent and to take Africa forward.”

“Additionally, Africa has a lot of stranded resources in the middle of nowhere, no infrastructure whatsoever. The gas in Northern Mozambique is the world’s 12th largest natural gas resource. A lot of infrastructure will need to be built in order to get this gas, because the town itself is very small and barely has roads to it, no port, no airport or even power and electricity. The town of Palma will literally be built up in order to access this gas resource offshore.”

As African regions maintain a position of opportunity, industry players must continue to provide regular service at a good price by MPV conveyance while anticipating shifts, according to Tiebel. As IMO 2020 draws closer, he shared his perspective on how Africa’s natural resources could potentially offset some of the unidentified challenges to come.

“The cost of the IMO’s regulatory change on the shipping industry in unknown, but every analyst expects it to be large. As well as shipping lines, the IMO’s decision will also impact refiners, crude producers, bunker suppliers and emissions and air quality affecting the health of millions of people. With Africa sitting on many different natural resources and this new emergence of investment to extract these resources, hopefully these resources in Africa will help with the industry with the spike in fuel costs, in 2020.”

Bringing the conversation back to the core of the RTM difference, Tiebel positions the local community and its needs as a priority before changes can take place in unpredictable and shifting markets. This further confirms the company’s continued success and robust, satisfied customer base. RTM Lines is a prime example of what it takes to conduct global operations while catering to a variety of customer needs. Instead of limiting customers, RTM provides its customers timely options.

“The issue with Africa is it’s a place with a lot of internal issues that need to be dealt with,” Tiebel concludes. “To get things done, one must have local knowledge and knowing the local people to get things moving. Without local knowledge and understanding what people need, you won’t be able to move on.”

Quebec Stevedoring to Manage Port of Ogdensburg, NY

Ogdensburg, NY – The Ogdensburg Bridge and Port Authority (OBPA) has unanimously approved an agreement to grant the management of its New York port terminal to NASCO (NY), a wholly-owned subsidiary of Quebec Stevedoring (QSL).

The northernmost port in the State of New York and one of the closest US ports to Europe, the Port of Ogdensburg is the only US port on the St. Lawrence Seaway.

The new partnership “enhances the positioning of Quebec Stevedoring in the North American cargo handling industry and is perfectly aligned with its long term growth objectives,” the OBPA said.

“We partner with the best. We build solid relations with other passionate industry players. The partnership with Ogdensburg is a perfect example of this dynamic and we foresee good prospects for both parties in the years to come,” said Bruce Graham, Great Lakes Stevedoring vice-president.

Quebec Stevedoring handles over 20 million tons of general and dry bulk cargo through its network of 29 port facilities annually.

Its terminal facilities are strategically sited along the St. Lawrence Seaway up to the Great Lakes and are located in Newfoundland, Nova Scotia, New Brunswick, Quebec, Ontario, Chicago, and now Ogdensburg.

Every year, the company’s facilities accommodate more than 1,000 inbound or outbound vessels from all corners of the world.

10/16/2014

Ports Face ‘Big Ships, Big Challenges’: White Paper

Long Beach, CA – The deployment of the latest generation of mega-containerships “presents physical, financial and operational challenges that must be met by port authorities across the country” according to the Port of Long Beach’s Acting Deputy Executive Director, Dr. Noel Hacegaba.

Even for ports that will not see the mega vessels call at their ports any time soon, the arrival of the larger ships is creating a cascading effect in which the ships being replaced by mega vessels are being deployed in the smaller trade lanes,” says Hacegaba in a new white paper, “Big Ships, Big Challenges.”

The average size of container ships, he says, has grown considerably in recent years and the trend is likely to continue for years to come.

“Although 18,000 TEU [20-foot equivalent unit] vessels are the largest in service currently, ships that carry more than 10,000 TEUs are still considered large and have limited options with regards to trade lanes and to ports that can accommodate them,” he writes.

Hacegaba said the industry is turning to the larger ships because they reduce operating costs for shipping operators, and they help meet regulatory requirements to decrease in potentially harmful emissions.

According to the white paper, ports around the country are spending $46 billion in capital improvements, including $4.5 billion invested at the Port of Long Beach. Shipping companies “are ordering larger ships to meet demand, while cutting the operational costs they would otherwise incur by sending cargo on multiple trips.”

As a result, ports of all sizes “are struggling to ready themselves to handle the larger vessels.”

Hacegaba states that regardless of a port’s size, they face a demand to handle a larger class of vessels. In the coming years it is projected that smaller vessels will be put out of services to make way for larger ones. But the largest ships will go to the biggest ports, while today’s larger ships will switch to smaller ports.

For the vessel operators, “the major investments in larger ships is straining their resources. So ocean carrier alliances and consolidations are also being forged as a result,” he says.

While this is not new to the maritime industry, Hacegaba points out that they are “providing financial uncertainty for port authorities.”

The newly aligned or consolidated vessel operators may move to different ports, while a smaller port may spend millions on fixing its infrastructure, and then lose a major tenant. In addition, smaller ports that don’t upgrade infrastructure because of their struggle for funding may face losing business as small-sized fleets are phased out.

The maritime industry “is ever evolving as technologies improve,” he concludes, with port authorities “playing a primary role” in educating both the industry and the public in potential changes.

“Ports must be built to handle larger ships and be prepared when shipping alliances do not go in their favor. As the maritime industry and how goods are moved change, so must ports if they are to be ready to handle the next generation of larger ships.”

0919/2014

Egyptian Government Plans New, Improved Suez Canal

Los Angeles, CA – The Egyptian government has reportedly launched a new project to construct a “new” Suez Canal that will run for 45 miles parallel to the existing waterway.

According to the Head of the Suez Canal Authority,  Mohab Mamish, the new canal “will reduce passing ships’ waiting time from 11 hours to as little as three hours” as they move from Port Said on the Mediterranean to the Red Sea terminus of Port Tawfiq.

The existing canal is too narrow for two-way passage, so transiting ships are moved in convoys or use bypasses.

The original, sea-level canal extends for 102 miles and has been the major route for shipping moving between Europe, India and the Far East since it was completed in 1869 after ten years of work. In 24 hours, the canal can handle as many as 76 ships.

The Suez Canal, a major chess piece in international geopolitics for all of its 145 year existence, earns Egypt about $5 billion annually, important for a country that has suffered a reduction in tourism and foreign investment over the last three years because of Egypt’s continuing political tensions.

The new canal is expected to increase annual revenues to $13.5 billion by 2023, said Mamish. The total estimated cost of drilling the new channel would be about $4 billion and should be completed in five years, he said.

Egypt, said Mamish, will eschew using foreign companies to build the planned canal and instead use its own firms, a move expected to create several thousand, much-need jobs.

At the same time, Cairo has said a consortium including the Egyptian Army will develop an international industrial and logistics hub in Suez to attract more shipping and logistics business to the country.

08/12/2014

Update: West Coast Longshore Talks Continue

Los Angeles – The Pacific Maritime Association (PMA) and the International Longshoremen and Warehouse Union (ILWU) have resumed contract negotiations.

Both groups took a four-day break in the talks as ILWU representatives attended unrelated contract negotiations with grain handlers in the Pacific Northwest.

According to a joint statement, the talks, so far have been “productive” with both the PMA and the ILWU pledging to “keep cargo moving through US West Coast ports during the negotiations.”

The six-year contract between dockworkers and the employers who operate port terminal and shipping lines expired on July 1. It covers workers at 29 ports from San Diego, California to Bellingham, Washington.

In the weeks preceding the expiration of the original contract, businesses across the country, and overseas, were concerned about the possibility of a work stoppage that could have paralyzed the movement of cargo through US West Coast ports including the major container load centers in Los Angeles/Long Beach, Oakland, and Seattle/Tacoma.

In 2002, a breakdown in labor negotiations resulted in a 10-day lockout at the 29 ports that was estimated to have cost the US economy $1 billion a day with the supply chains of some companies seriously ‘kinked’ for up to six months afterwards.

At the time, a week before the July 1 expiration date, Jonathan Gold, vice president of supply chain and customs policy for the National Retail Federation (NRF), said, “Folks are nervous about what’s going to happen once the contract expires.”

The concern was underscored by the fact that, during the months of July through September, retailers such as Wal-Mart Stores Inc and Target Corp receive ocean shipments of goods sold during their critical back-to-school and holiday shopping seasons, he said.

Past experience shows that labor negotiations at West Coast ports typically extend beyond the contract expiration date with the current round of talks possibly extending into September, according to some sources.

08/04/2014

Secrecy of ILWU, PMA Contract Talks Blasted

Los Angeles, CA – The Pacific Maritime Association (PMA) and the International Longshore & Warehouse Union (ILWU) should “part the curtain of secrecy surrounding their contract negotiations,” according to Los Angeles Chamber of Commerce President and CEO Gary Toebben.

The deadline for reaching agreement on a new labor contract governing America’s 29 West Coast ports passed at 5 p.m. PST this afternoon “and the scant amount of insight or information on the future status of a new contract worries many,” he said.

Toebben made his comments in an editorial for the Los Angeles Daily News published on the paper’s website  just a few hours before the contract deadline expired.

The last public statement on the progress of the talks was made on June 4 when the negotiations were described as “positive” by the leadership of both the PMA and the ILWU.

“About 12.5 percent of the US GDP currently flows through the ports, and 9.2 million jobs across America — including 3.7 million in California alone — depend on the efficient flow of goods on and off the docks,” he wrote.

“Industries spanning agriculture to manufacturing, from autos to electronics, and across all sectors of retail are currently scampering to implement contingency plans given that neither a new contract nor a contract extension has been announced, he said.”

Both the PMA, which represents the terminal operators and shipping companies, and the ILWU, which represents the 20,000 dock workers at the ports in California, Oregon and Washington, he said “are staying tight-lipped about the talks that have been ongoing for two months.”

It has been widely reported, Toebben added, “that rising health care costs are a major sticking point, given that the longshoremen, retirees and their families enjoy one of the most envied health care plans available in America today, with unlimited coverage at little or no cost.”

Also, he said, “it’s also understood that West Coast ports have been leaking market share for the past decade or more, as competing ports on America’s East and Gulf coasts have been lowering costs, improving performance and building infrastructure to attract greater shipping volumes. Global manufacturing patterns too are shifting, putting more origination points closer to East and Gulf coast destinations.”

Decrying the loss of cargo marketshare, Toebben said, “Suddenly, the West Coast is not the monopoly it used to be — and current lack of an agreement or extension only hastens shippers’ efforts to further diversify their transportation networks. In Southern California, the information ‘blackout’ by PMA and ILWU only fuels the worries of employees, families, politicians, communities and businesses small and large, who together wonder if we’ll see a repeat of 2002’s billion-dollar-per-day coast-wide shut down.”

Information, he charges, “is limited, but the questions aren’t – how close are the parties to reaching a new contract?; what issues have already been fully resolved, and which still remain?; will an extension be formalized to assuage concerns while talks continue?; will the union engage in work slowdowns if an extension can’t be signed?; and, can the ports continue to operate efficiently, with everyday issues and grievances resolved amicably, without an extension?

“Given the critical importance of the ports in today’s local and regional economies, and for the sake of the millions of people who depend on the uninterrupted flow of goods in and out of America,” Toebben concluded. “Such transparency is essential, especially given what is at stake now — and for years to come.”

07/01/2014

 

Deadline Nears for West Coast Dock Contract

San Francisco, CA – Negotiations between the Pacific Maritime Association (PMA) and the International Longshoremen and Warehouse Union (ILWU) continue as the clock ticks down to midnight, June 30 – the deadline when the current contract between West Coast dock workers and ocean terminal operators expires.

The month-long negotiations cover a contract that would frame the work of more than 14,000 dock workers at 79 ocean terminals at 29 US West Coast load centers, including the major container ports of Los Angeles, Long Beach, Oakland, Portland, Seattle and Tacoma.

If no contract has been agreed to by the July 1 deadline, both the PMA, which represents the terminal operators, and the ILWU could agree to extend the existing agreement into July, but there is no guarantee as past contract negotiations between the two groups have historically been contentious.

In 2002, negotiations got so ugly that President George W. Bush had to invoke the Taft-Hartley Act to end an 11-day shutdown of US West Coast ports, citing the port’s’ operations as ”vital to our economy and to our military.”

A study by the University of California at Berkeley that year estimated that total cost of shutting down the West Coast ports was about $2 billion a day in lost business and tax revenue from sales and wages. The strike also created a backlog of cargo that took weeks to alleviate.

The 2002 shutdown forced ocean carriers to divert cargo to ports in British Columbia and along the US Gulf and East Coasts, and compel manufacturers, importers and exporters across the country to re-configure critical supply chain and production schedules.

Traditionally the ILWU-PMA contract covers three years. But after the 2002 lockout, a six-year contract was instituted as a way of ensuring labor stability for a longer time.

The six-year duration was renewed again in 2008 as the economy was struggling and stability was again a priority. In the current negotiations, the three-year term is again back on the table.

Industry Concerns Deepen

A number of national, private-sector industry groups have communicated their growing concern that the negotiations come to a successful conclusion prior to the contract’s expiration date.

The West Coast ports are critical not only to our members, but to any business, manufacturer, farmer or anyone that relies on imports and exports for their business,” stated Jon Gold, who oversees transportation issues for the giant National Retail Federation.

Bruce Carlton, president of the National Industrial Transportation League (NITL), said during a recent press conference that  unhindered operations at US West Coast ports are “a big deal for everybody. So much of what we buy and sell in this country moves through those ports.”

The Agriculture Transportation Coalition in Washington, DC, released an “open letter” to ILWU President Robert McEllrath, and James McKenna, PMA president & CEO.

“There is nothing that we produce in agriculture and forest products in the United States, that cannot be sourced somewhere else in the world,” the letter stated. “If we cannot deliver dependably and affordably, our foreign customers will simply shift their sourcing to other countries.”

06/19/2014