fbpx
Thursday, October 1st, 2020
Home » Ports » East Coast ports continue to grow cargo volumes impressively

East Coast ports continue to grow cargo volumes impressively

PortandTerminal.com, July 19, 2019

Nearly three years since the Panama Canal Expansion opened, TEU volume continues to grow – especially for East Coast ports.

Nearly three years since the Panama Canal Expansion opened, TEU volume continues to grow – especially for East Coast ports according to data published on Thursday, July 18 by the real estate and logistics services giant JLL, Inc.

Since 2008, TEU volumes on East Coast ports’ have increased by 46.8 percent. The West Coast is seeing growth as well, albeit at a much slower rate of 18.4 percent over the same period.

East Coast ports have seen containerized cargo growth of 47% over the past decade

What’s driving the East Coast’s impressive volume growth?

1. The Panama Canal expansion

The expanded Panama canal began commercial operation on 26 June 2016.

The expansion of the Panama Canal doubled its capacity by adding a new lane of traffic allowing for a larger number of ships to pass through it. Importantly, the expansion also increased the width and depth of the lanes and locks allowing larger ships to pass.

The new larger ships, called New Panamax, are about one and a half times the previous Panamax size and can carry over twice as much cargo. This makes it more cost-effective for Asian shippers to bypass West Coast ports and ship their cargo directly to East Coast ports instead.

2. East Coast ports are now big-ship ready

Aug. 28, 2017 image provided by the Port of Virginia shows the CMA CGM Theodore Roosevelt being unloaded at the Virginia International Gateway in Norfolk, Va. The arrival of the ship breaks the record for the largest container ship ever to visit the Port of Virginia and the East Coast. (Keith Lanpher/Port of Virginia via AP)

East Coast ports saw the writing on the wall and prepared themselves for the big ships the Panama canal expansion brought into play. They have invested in the equipment to handle the larger, New Panamax ships with capacities up to 15,000 TEUs, compared with the 5,000 TEUs previously.

3. It makes sense to ship more of America’s cargo to East Coast ports than to West Coast ports

Nearly two-thirds of the U.S. population lives east of the Mississippi River.

Nearly two-thirds of the U.S. population lives east of the Mississippi River. In the past, cargo from Asia bound for America’s eastern cities was offloaded at a port on the West Coast and sent by rail eastwards. The Panama Canal expansion makes it cost-effective to bypass the West Coast ports and ship by sea to directly to the East where more people live.

The outlook? With the rise of e-commerce and the population base, JLL Inc predicts that TEU volumes on the East Coast to continue the upward growth trajectory.

Related articles

Check Also

Market traders. Bags of used clothing

Mountains of clothing build up as recycling breaks down

REUTERS, SEPTEMBER 30, 2020 MADRID/NAIROBI (Reuters) – Clothes recycling is the pressure-release valve of fast …

Container stacks. Bridge. Truck

U.S. companies on an inventory buying binge

Goods trade deficit rises; inventories increase REUTERS, SEPTEMBER 29, 2020 WASHINGTON (Reuters) – The United …