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Port of Virginia Cargo Volumes Continue to Soar

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Port of Virginia Cargo Volumes Continue to Soar

The Port of Virginia has handled more than 314,000 TEU in March 2022, registering an increase of more than 35,000 TEU (or 12.6 per cent) since March last year.

Nearly 47 per cent of the total volume was in loaded imports.

The volume figures for the month were also ahead of both January and February 2022, which were respectively 262,000 and 297,000 TEU.

“In terms of overall volume, this March ranks as the fourth most productive month in our history,” said Stephen A. Edwards, CEO and Executive Director of the Virginia Port Authority.

“We are processing heavy volumes and doing so with fluidity, which continues to draw interest from ocean carriers and cargo owners. This means we are keeping our focus on those operational issues that drive efficiency and meeting the needs of all port users.”

Edwards added that the port’s berth efficiency will further increase with the addition of two new ship-to-shore cranes that were delivered in late March to Norfolk International Terminals (NIT).

The new cranes will go into service in late May giving the port 30 ship-to-shore cranes capable of handling Ultra-Large Container Vessels (ULCVs).

“Combine this new equipment and the expansion of NIT’s Central Rail Yard and its North Berth with our effort to create the only port on the US East Coast with channels deep enough and wide enough to handle two-way movement ULCVs and we have the necessary foundational components to drive cargo growth here for decades to come,” commented Edwards.

“It also means that, in parallel, we’ll be able to provide an even higher level of efficiency, service, and care to all of our users.”

In 2021, the Port of Virginia posted its most productive year on record having processed more than 3.5 million TEU.

port of virginia

PORT OF VIRGINIA ENHANCES GLOBAL CONNECTIVITY—FOR ST. LOUIS

As the fifth busiest container port in the U.S., the Port of Virginia obviously provides a financial boost for Virginians—but also Missourians as well.

You see, the Port of Virginia is one of the St. Louis region’s primary gateways to the world. Dedicated rail service provided by two Class I railroads–Norfolk Southern and CSX–connect the St. Louis region to the East Coast port, where more than $900 million has been invested within the past three years. 

That investment has doubled the Port of Virginia’s capacity and increased efficiencies for getting freight on and off both rail and ocean carriers. That translates into time and cost savings for importers and exporters in the St. Louis region who utilize the Port of Virginia and its ocean carrier services for global connectivity. 

“We have 30 weekly services with our ocean carrier customers, and that gives shippers in the St. Louis community or any of our inland connections a lot of options,” explains Aaron Katrancha, director of Breakbulk, Ro-Ro & Rail Sales for the Port of Virginia. “You can get basically anywhere in the world from the Port of Virginia—Asia, Africa, Caribbean, Central America, Europe, India, subcontinent, Middle East, Mediterranean, South America, you name it. We have those global connections to offer the St Louis market.” 

Katrancha likens the rail connections between the intermodal yards of the St. Louis region and the Port of Virginia to commercial airline service.  “Our rail services run on a very concrete schedule that our customers can set their watches to,” he boasts.  

Bi-State Development, which operates the St. Louis Regional Freightway, has taken the lead in ensuring local shippers are aware of the scheduled rail services and the benefits they offer, Katrancha explained in a talk at May’s FreightWeekSTL 2021 with Mary Lamie, executive vice president of Multi Modal Enterprises at Bi-State Development.

“Everything that Aaron has shared today,” Lamie said, “reinforces the global significance of the Port of Virginia and opportunities for growth between our two regions.” 

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HOW ROLL ON/ROLL OFF PORTS RESPONDED TO THE COVID-19 PANDEMIC

The COVID-19 pandemic wreaked havoc on global shipping. One of the categories hit worst was roll-on/roll-off (Ro/Ro). These ships, which revolutionized the transport of automotive and military vehicles, often found themselves with nowhere to go as automakers shut down their plants in the first half of 2020 to stop the spread of the coronavirus. 

Figures compiled by the UN Conference on Trade and Development (UNCTAD)—and published in its report COVID-19 and Maritime Transport: Impact and Responses—show just how bleak the Ro/Ro sector got, with the ships stopping in five percent fewer ports in the first quarter of 2020 than the same quarter a year earlier, and nearly 25 percent in the second quarter.

“The COVID-19 pandemic has significantly impacted on Ro/Ro services,” states the UNCTAD report. “Since March 2020, port calls by Ro/Ro ships worldwide declined by 22.8 percent compared with the same period in 2019. One in four ship calls has been suspended. Total calls by Ro/Ro ships since the beginning of 2020 declined by 13.8 percent as compared with the same period in 2019.”

While those declines were bad, it’s also true that vehicle traffic rebounded in the latter half of the year. We looked at 10 U.S. ports that have Ro/Ro capability to see how bad the situation got before they recovered—and how they did it. All of these ports instituted special COVID-19 protocols at the start of the pandemic, and all have remained operational throughout the crisis.

BRUNSWICK, GEORGIA

Port officials say that in the spring of 2020, the closure of so many automakers dramatically lowered the number of automobiles entering Colonel’s Island Terminal. May 2020 saw the worst volume decrease—down 77 percent compared to May 2019.

The rebound started in June, though port officials say Ro/Ro traffic that month was still 38 percent below June 2019. July was better, in that it was only down 11 percent. By August, Ro/Ro traffic was actually up 9 percent, though September was flat. The rest of the year saw Ro/Ro traffic up 32 percent over the previous year; November down 16 percent, and December was 27 percent ahead of the same month in 2019.

For the year, Colonel’s Island terminal served 435 vessel calls in 2020, compared to 466 in 2019. Put another way, in 2020 the Port of Brunswick handled 587,395 units of Ro/Ro cargo, a decrease of 25,506 (4 percent) compared to 2019.

BALTIMORE, MARYLAND

The Port of Baltimore ranks “first among the nation’s ports for volume of autos and light trucks, roll on/roll off heavy farm and construction machinery, and imported gypsum,” according to the Maryland Port Administration. After sustained decreases in Ro/Ro traffic throughout the spring, December totals showed a triple-digit increase—the sixth consecutive month of increased compared to the first months of the pandemic, according to a Feb. 3, 2021, Maryland Port Administration news release. What’s more, December figures for general cargo, containers and Ro/Ro represent year-over-year monthly gains versus December of the previous year.

“Throughout the pandemic, the Port of Baltimore has been a barometer of Maryland’s economic recovery, and the latest figures give us great optimism for the new year,” Governor Larry Hogan said in the news release. “The port’s healthy rebound is an indicator of increased consumer demand, and we’ve proven we have the talented workforce and the infrastructure to answer that demand.”

By December 2020, 67,063 tons of Ro/Ro traffic moved through the Port of Baltimore—up nearly 36 percent from June. In fact, December was so good that Ro/Ro traffic was up 1 percent from the same month in 2019.

CHARLESTON, SOUTH CAROLINA

In the spring of 2020, BMW, Mercedes-Benz and Volvo shut down auto plants in the South due to COVID-19. This cut Ro/Ro traffic into Charleston by a third, according to JOC.com. 

But by August, the numbers started to recover. “Among the encouraging signs that port officials highlighted was the highest July on record for vehicle movement through the port,” according to Aug. 20, 2020, post in The Maritime Executive. “The strength in the Ro/Ro sector they believe signifies a return to normalcy at automotive plants throughout South Carolina and the Southeast.”

Port officials are so encouraged that they see a stronger rebound throughout 2021.

“We are encouraged by some signs of an initial rebound in our container and automotive volumes, as well as an increase in imports and a decline in blanked sailings,” S.C. Ports President and CEO Jim Newsome said in an Aug. 20, 2020, Maritime Executive post. “However, a more substantial recovery is dependent on the duration and intensity of the economic impacts from the pandemic, and ultimately, on a vaccine.”

JACKSONVILLE, FLORIDA

Like all U.S. ports, JAXPORT saw Ro/Ro traffic hit hard by the coronavirus. But the rebound in the summer and fall was strong. In fact, the last quarter of calendar year 2020 was “the second busiest quarter for vehicles in the port’s history,” according to a Feb. 11, 2021 JAXPORT news release.

Given that it’s one of the nation’s most diversified ports, and that means it’s “well-positioned to continue to see increased volumes to satisfy growing consumer demand in nearby markets throughout the Southeast, including South Florida, Orlando and the rest of the I-4 corridor,” said Alberto Cabrera, JAXPORT’s director of Automotive Accounts.

“An increase in U.S. military vehicle movements at the port helped to offset the industry-wide decline in commercial shipments due to the temporary shutdown of auto manufacturing over the summer caused by the coronavirus,” said Cabrera.

He adds that 2021 should be a “robust year” for emerging vehicle technology. “As manufacturers continue to rebound from the pandemic shutdowns, we will see the release of many new models with the advanced technology, including autonomous driving, steering assistance, and forward collision prevention, that consumers have been demanding,” Cabrera said. 

PHILADELPHIA, PENNSYLVANIA

In late 2019, PhilaPort opened a giant new auto terminal and Vehicle Processing Center (VPC). “The VPC at Southport is capable of servicing 200 cars per hour and fully processing over 1,000 cars daily,” a PhilaPort news release said at the time. A few months later, the pandemic hit. After that, Ro/Ro traffic “was down, but not as much as the other Ro/Ro ports,” a PhilaPort spokesman said.

The port instituted new COVID-19 protocols, including closing the main administration offices in the early months of the pandemic. But by late September, the port reopened the offices. Today, the port is close to operating as usual—though with some adjustments. 

“This port handles almost 1 million tons of forest products in a normal year,” said Penn Warehousing and Distribution’s Tom Mutz in a Feb. 5, 2021, PhilaPort news release. “But COVID and new modes of consumer behavior have resulted in even greater amounts of forest products entering our port.”

GALVESTON, TEXAS

Port officials made clear that COVID-19 had very little impact on the operations at the Port of Galveston. That being said, the temporary closure of many auto plants did cause a significant slowdown in Ro/Ro traffic for much of 2020. You can see it in the numbers provided by port officials: The port moved 487,371 vehicles in 2019, but just 314,790 in 2020.

That said, port officials noted that other traffic at the port is strong. In fact, they report that the port saw 25 cargo vessels in January 2021—up considerably from the 19 that arrived in pre-pandemic January 2020. 

HUENEME, CALIFORNIA

For the Port of Hueneme, May and June of 2020 were the worst months of the pandemic for Ro/Ro traffic. During those months, Ro/Ro ship traffic dwindled almost to zero. Recovery finally came in the last quarter of 2020, which saw four to five Ro/Ro ships coming into port every week. 

But the damage had been done. In 2019, Ro/Ro ships moved 346,288 autos in and out of the Port of Hueneme, but just 282,164 in 2020—an 18.5 percent drop in a year. Overall tonnage dropped at the port 1.8 percent due to the pandemic. But so far, officials say Ro/Ro volume is still showing a strong recovery and is now 1 percent higher than the same period last year.

Port officials also say their own internal operations and communications plan worked very well in dealing with COVID-19 cases. In fact, they say the port saw just 19 reported COVID-19 cases since the pandemic began in March 2020. Currently, the port is working with local officials to prioritize the vaccinations cycles for their workforce.

NORFOLK, VIRGINIA

For the first half of 2020, the Port of Virginia saw a significant drop in trade—due both to the COVID-19 pandemic and trade tariffs. But port officials are proud that throughout the crisis, the port has not lost a single-day of productivity. Despite the drop in traffic, the port instituted no layoffs or cuts in pay and benefits. Officials also noted that since the port was processing less cargo, efficiencies increased—dwell-time for rail imports, berth productivity and turn-times for motor carriers. The port also used the slow period to accelerate maintenance schedules for equipment and make operational tweaks.

By the end of the year, the Port of Virginia was actually setting records: The port processed more than 260,000 twenty-foot equivalent units (TEUs) in December, making it the best volume on record for that month. The port also set its all-time monthly volume record in November 2020 by handling more than 280,000 TEUs.

Today, Port of Virginia officials describe their Ro/Ro capabilities as “strong.” They expect a rebound in both automobiles and traditional Ro-Ro cargo in 2021, which they say they can accommodate at either their Newport News Marine Terminal or the Portsmouth Marine Terminal.

LONG BEACH, CALIFORNIA

Long lines of shipping traffic into the ports of Long Beach and Los Angeles are familiar to everyone within five miles of the Southern California coastline. Even in 2020, the traffic was considerable.

“Initially, the COVID-19 pandemic had a negative impact on the volume of containers flowing through the port, but the latter half of the year was very active as shippers worked to satisfy pent-up demand for goods,” said Port of Long Beach Executive Director Mario Cordero. “The Port of Long Beach had its best year on record in 2020, with 8,113,315 TEUs moved, up 6.3 percent from 2019. The port exceeded the previous annual record set in 2018 by 22,292 TEUs.”

But the same can’t be said for Ro/Ro ships. In fact, Ro/Ro data from the Port of Long Beach shows abysmal numbers: 302,811 vehicles in 2019, but just 239,135 in 2020.

To ensure that 2021 is good for all categories of shipping, Cordero is focusing on protecting his workforce.

“The nation’s waterfront workers have kept this country’s supply chain functioning since Day One of the pandemic, and they are at high risk,” Cordero said. “Prioritizing the waterfront workers for vaccination is of paramount importance, both for their safety, and for the sake of the economy. We are continuing to work with health officials to vaccinate essential workers, to maintain the fluidity of cargo movement.”

SEATTLE/TACOMA, WASHINGTON

The Northwest Seaport Alliance (NWSA), the operating entity behind the ports of Seattle and Tacoma, is the fourth largest container gateway in the United Sates. And the COVID-19 pandemic hit the NWSA hard across the board.

“Total container volumes in March were down approximately 21 percent as compared to March of 2019,” said John Wolfe, the NWSA CEO, according to an April 15, 2020, story in American Shipper. “That brings our year-to-date first-quarter decline to 15.4 percent.”

The situation at the ports was still bad, even into October.

“The economic fallout from COVID-19 continues to disrupt supply chains across the country and around the world,” stated an Oct 20, 2020, NWSA news release. “The NWSA gateway saw 59 blank sailings through September, surpassing the total number of canceled sailings in 2019.”

As with most ports in the U.S., by the end of the year cargo traffic had rebounded or even exceeded 2019 levels at the NWSA ports—except for auto volume. That stood at 156,205 units, down 18.6 percent from the previous year, according to a Jan. 20, 2021, NWSA news release.

suffolk

PORT OF VIRGINIA PUT SUFFOLK ON THE COFFEE MAP

Coffee’s contribution is not peanuts

Established in 1742, the little town of Suffolk, Virginia served as a port along the Nansemond River in Virginia’s Tidewater region, eventually becoming a hub for railroad transportation. An Italian immigrant put Suffolk on the food production map, establishing the Planters Nut and Chocolate Company in 1912. A Peanut Queen is still crowned at the annual peanut festival.

These days, Suffolk has a newer claim to fame in the food industry. Home to several large coffee roasters including Massimo, Zanetti USA, Keurig Green Mountain, J.M. Smucker — and soon — Peets Coffee, Suffolk has become the most caffeinated city east of the Mississippi. The coffee industry has built out a cluster of related activities that generate significant employment and revenue for the people of Suffolk.

A deep commitment to Virginia coffee

Until the 1960s New York City was the undisputed home to the coffee industry. Since then, coffee has been imported through a variety of ports on the East Coast and elsewhere throughout the country, including the ports of New Orleans, Houston, Los Angeles and, of course, Seattle which is the home of Starbucks.

How did Suffolk become a coffee epicenter for the East Coast? Location and maritime advantage. Suffolk is 30 miles west of the Port of Virginia, which was the first to accept the much larger neo-Panamax ships transiting the expanded Panama Canal beginning in 2016. Port of Virginia has embarked on a $700 million expansion project of its own. By 2025, it will have a 55-foot channel depth, making it the deepest port on the East Coast, and will be able to handle an additional one million cargo containers at two of its terminals.

Centrally located on the eastern seaboard, Port of Virginia is capable of serving the major population centers east of the Mississippi. The ports of Baltimore, Savannah, Charleston and Virginia together now account for about one-third of all the green (unroasted) coffee imported into the United States. Suffolk is conveniently located to all of them.

Roasting the competition

Suffolk’s rise to roasting prominence started with one company – Hills Bros, now Massimo Zanetti. Once Hill Bros moved to Suffolk from New Jersey, others began to see its merits as an East Coast base. Building on the foundation of early investment by Lipton, which built its first plant there in 1955, the region is now the third-largest coffee and tea cluster in the country.

The City of Suffolk, together with the Virginia Economic Development Program, welcomed the industry with large industrial sites close to Port of Virginia and collaborated to have three coffee warehouse companies licensed by the International Coffee Exchange (ICE). Only beans stored under very particular, climate-controlled conditions can be certified for trading on ICE’s commodities exchange.

Bean roasting connoisseur allowing customer to smell the aroma from the coffee beans

To ensure the people of Suffolk could move into value-added jobs in the coffee industry, local educational institutions, such as Paul D. Cook Community College in Suffolk, developed training programs tailored to the industry’s needs offering new credentials such as an Industrial Technology and Electronic Controls certification.

The companies offer interesting career paths. “Cuppers” are specialized technicians who test beans for quality and taste the beans after roasting, grading their suitability and characteristics for blending. Nora Johnson came to Suffolk to work as an intern with Massimo Zanetti in 2016 as a Florida Gulf Coast University student. Upon graduating, she joined Massimo Zanetti full-time as a Commodities Analyst, analyzing customer positions on the coffee futures market and has become involved in the company’s sustainability and responsible sourcing initiatives.

Toast the roast

The coffee industry contributes approximately 10 percent of Suffolk’s gross regional product directly, and another 13 percent through indirect and induced effects. The Port of Virginia started a new annual celebration, “Coffee Day,” so everyone can toast the roast and celebrate the opportunities trade brings to the region.

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Evelyn Suarez

Evelyn Suarez is a legal expert and consultant specializing in customs compliance and anti-corruption. Ms. Suarez serves on the Virginia Maritime Association Board, and advisory boards to the George Washington University Center for International Business Education & Research and Georgetown University Law Center International Trade Update.

This article originally appeared on TradeVistas.org. Republished with permission.

World Distribution Services Announces $6.2 million Warehouse Renovation

Driven by a vision for infrastructure upgrades, technology enhancements, and new machinery, supply chain solutions provider World Distribution Services announced plans to refurbish and build 320,000 square feet of warehousing space at a facility in Virginia Beach. The added space will be solely dedicated to manufacturing and retail goods with 20,000 square feet specifically dedicated to food grade space.

“Our new warehouse will feature a top tier Warehouse Management System (WMS) with RF scanning technology. Our WMS gives our clients 24/7/365 access to their inventory data, and seamlessly integrates with their ERP systems,” said WDS SVP John Morrow. “What this means is that we can easily handle inventory management and order fulfillment services for our clients, and provide them with extremely accurate tracking, tracing, and reporting that fits their needs.”

Artistic rendering of the future World Distribution Services warehouse at 1537 Air Rail Avenue in Virginia Beach. The refurbished warehouse will be 320,000 square feet with 20,000 square feet of dedicated food-grade space.
Credit: World Distribution Services

With an estimated completion date for March 2020 and a prime location within 15 miles of Port of Virginia’s container terminals, the renovation will also bring 35 new jobs to the region.

“This company will be nearly doubling its warehousing space [in Virginia], which speaks to its success and its expectations for the future,” said VBDA Interim Economic Development Director Taylor Adams. The VBDA approved an EDIP grant of $35,000 for WDS based on the number of new jobs it will create.”

“We are very excited to be expanding our warehouse operations into Virginia Beach in 2020.  We wanted to bring high quality facilities close to the Port of Virginia to better serve our customers and to improve the work environment for our employees. Thanks to the Virginia Beach Department of Economic Development, we were able to find a facility that will meet both of those objectives,” said Duncan Wright, President of WDS.