PORT OF NEW YORK AND NEW JERSEY GREEN LIGHTS CMA CGM’S TAKEOVER OF TWO KEY CONTAINER TERMINALS
The Port Authority of New York and New Jersey has agreed to amend leases held by Global Container Terminals Inc. (GCT) at two key container terminals in New Jersey and Staten Island, paving the way for French shipping giant CMA CGM to assume operations and increase capacity at the terminals. The amended leases will allow CMA CGM, one of the world’s largest shipping companies, to takeover operations at the Port Jersey-Port Authority Marine Terminal in Bayonne, N.J. and the Howland Hook Marine Terminal on Staten Island, known as GCT Bayonne and GCT New York, respectively. The two terminals have a current combined capacity of 2 million TEUs per year. CMA CGM announced its intent to acquire the terminals in December, saying it plans to accelerate investments to increase capacity by as much as 80%.
PORT OF LOS ANGELES CARGO VOLUMES FALL 27% IN JULY
The Port of Los Angeles moved 684,291 Twenty-Foot Equivalent Units (TEUs) in July as cargo volumes declined 27% compared to last year’s record month. “Global trade has eased as warehouse inventories of retailers and manufacturers remain elevated,” said Port of Los Angeles Executive Director Gene Seroka. “American consumers are continuing to spend and are likely to find more discounted items this year as we move into fall fashion and year-end holiday season.” July’s loaded imports landed at 364,208 TEUs, down 25% YoY, while loaded exports increased by 6% YoY to 110,372 TEUs. Meanwhile, the demand for empty containers in Asia slowed, resulting in a 39% YoY decline to 209,710 empty TEUs. Overall, July volumes were 684,291 TEUs, a 27% YoY decline. Seven months into 2023, the Port of Los Angeles has processed 4,821,670 TEUs, about 24% less than the same period last year.
PORT HOUSTON HAS BUSIEST JULY ON RECORD AS PEERS DISAPPOINT
As ports across the country grapple with falling cargo volumes, Port Houston is marking its busiest July on record as both imports and exports gained over last year. The port handled a total of 344,163 TEUs July, representing a 5% increase from July 2022. Year-to- date, 2,202,538 TEUs were handled at Port Houston terminals, only 1% less than last year’s record volumes. Port Houston experienced a 4% increase in loaded import volumes and a 15% increase in loaded export volumes in July compared to the same period last year. Year-to-date loaded export volumes are up 12% due to high demand for resins, resulting in a balanced flow of containers with imports representing 51% and exports 49% of throughput. Port Houston received three new ship-to-shore cranes at the Bayport Container Terminal as part of an expansion plan to increase efficiency and capacity. The cranes will support service of the 15,000 TEU-sized ships expected to call upon the 2024 completion of the wharf.
US JULY IMPORTS FROM ASIA HIT 11-MONTH HIGH, PORTENDING YEAR-ON-YEAR FALL GROWTH
US imports from Asia increased for the fifth consecutive month in July to 1.46 million TEUs — the highest since last September, raising the likelihood that the eastbound trans-Pacific trade will return to year-over-year import growth this fall. July’s imports were up more than 35% from the 2023 low of 1.08 million TEUs recorded in February and matched in March.
US SHIPPERS RIDING POST-YELLOW SHOCKWAVES AS LTL FREIGHT SHIFTS AMONG CARRIERS
The collapse of less-than-truckload (LTL) company Yellow — until its failure the third-largest LTL provider in the US by revenue — is shaking the ground beneath its competitors and shippers alike, tightening LTL capacity, pushing up pricing and in some cases affecting delivery times.
NS DELAYS ATLANTA APPOINTMENT SYSTEM AFTER MEMPHIS ROLLOUT WOES
Norfolk Southern’s rollout of a new appointment system outside Memphis in May has been plagued by difficulties, including delays at the terminal due to computer outages and chronic problems with two cranes responsible for transferring containers onto trucks, the railroad is acknowledging. Those problems have forced the railroad to delay the implementation of a mandatory appointment system in Austell, Georgia, outside of Atlanta until October as it looks to learn lessons from the Memphis situation. The original timeline for implementation in Georgia was July. Appointments are mandatory at the NS Rossville terminal outside Memphis to pick up ocean containers railed.
