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Ports of LA and Long Beach Set New TEU Records as Imports Soar. Thanks to labor disruption at U.S. East Coast ports and strong retail ordering in the runup to the holiday season, the twin ports of Los Angeles and Long Beach have both posted their busiest quarters ever, as well as all-time highs for the month of September. The level of activity continued last month, Long Beach's busiest September ever. Longshoremen and terminal operators moved 829,499 TEU last month, just a hair over the previous record of 829,429 TEU set in September 2023. (August was even busier, with an all-time #port record of more than 910,000 TEU.) Even though the port has been busy, it still has ample capacity to handle America's demand for East Asian consumer goods, officials say. "We have plenty of room across our #terminals as the peak shipping season drives a record amount of #cargo through this critical gateway for trans-Pacific trade," said Port of Long Beach CEO Mario Cordero. "We are anticipating continued growth through the rest of the year as retailers stock the shelves for the winter holidays." Loaded #import containers - primarily on the transpacific trade lanes - made up more than half of Long Beach's volume in September. Loaded export boxes accounted for just over 10 percent of the total, and outbound empties made up the balance. Full import and outbound empty #containers were responsible for all of the port's gains in performance over the year to date, up 25 percent and 30 percent respectively (year-on-year). Loaded exports dropped by 12 percent over the same period. Next door, the Port of Los Angeles handled a record 954,706 TEU in September, a 27% increase over the previous year, and a record 2,854,904 TEU in the last three months. Nine months into 2024, the Port of Los Angeles' volume is 18% higher than during the same period last year. Consumer confidence is a primary driver of the San Pedro Bay ports' performance, and it remains strong in the United States, according to the National Retail Federation. The NRF predicts that winter holiday spending will increase by as much as 3.5 percent this year, reaching just shy of a trillion dollars, thanks to a strong economy. "The winter holidays are an important tradition to American families, and their capacity to spend will continue to be supported by a strong job market and wage growth," said NRF President and CEO Matthew Shay. "The #economy remains fundamentally healthy and continues to maintain its momentum heading into the final months of the year."

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Port of New Orleans secures over US$1 million grant to enhance security and emergency response capabilities. The Port of New Orleans (Port #NOLA) has received US$1,040,583 in funding from the Federal Emergency Management Agency’s (#FEMA) Port Security Grant Program. This #grant will fund significant physical and technological enhancements, aimed at bolstering the Harbor Police Department’s (HPD) surveillance capabilities and providing essential equipment for emergency response. All enhancements are scheduled for completion by August 31, 2027. In 2024, FEMA’s Port Security Grant Program distributed US$90 million to various agencies to fortify #port infrastructures against terrorism, natural disasters, or other critical emergencies. Ronald Wendel, Jr., Acting President and CEO of Port NOLA and Acting CEO of the New Orleans Public Belt Railroad (NOPB), expressed gratitude towards FEMA for their continuous support, highlighting that this funding is a vital step in advancing the security measures. In the previous year, Port NOLA received US$947,280 to enhance its Emergency Operations Center (EOC), a crucial command center during major emergencies such as #hurricanes. Over the last three years, Port NOLA has garnered a total of US$2,502,827 in FEMA funds to amplify its security and emergency responsiveness.

Container Imports Projected to Level Off at Strong Volumes After ILA Strike. After a surge to get merchandise, equipment, and supplies into the U.S. ahead of the long-promised but short-lived International Longshoremen’s Association strike, the forecast is that #container #import volumes will level off for the remainder of 2024. Ports however have managed well with the increased volumes of 2024 with delays declining and are now rebounding quickly from the three-day #strike last week. Total U.S. import container volumes reached over 2.52 million TEU in September according to Descartes, a software platform for logistics-intensive businesses. They highlight that it was the second time this year import volumes surpassed 2.5 million TEU and the third month in a row that imports surpassed 2.4 million TEU. Total volumes were up 1.7 percent versus August but a significant 14.4 percent versus a year ago calculates Descartes. They also highlight the import volumes in September increased by 23.5 percent over pre-pandemic September 2019. #Ports handled unusually large volumes of #cargo beginning this spring as importers brought in goods early because of the potential for a strike and shifted a number of vessels to the West Coast, according to the National Retail Federation. They believe that wholesalers, retailers, and industrial companies brought “contingent imports” through the ports in anticipation of the ILA strike creating some of the increases in volumes. Descartes highlights that at the current volumes, U.S. maritime #logistics were historically strained. However, with increased capacity and better management, ports are more prepared and Descartes notes port transit time delays have decreased. The NRF forecasts volumes of just over 2 million TEU in #October and slipping to 1.92 million in #November and 1.89 million in #December. They project that the last two months of 2024 will level off at just one percent ahead of 2023. Despite that, their projected total for 2024 is 24.9 million TEU which would be up over 12 percent versus 2023. For all of 2024, the NRF is forecasting that retail sales – excluding automobile dealers, gasoline stations, and restaurants to focus on core retail – will grow between 2.5 and 3.5 percent over 2023. They also predict that 2025 will start on a positive note with container imports #forecast at 1.98 million TEU which would be up nearly one percent of 2024.

USEC port strike ends, but supply chains will take weeks to recover. Strike action at ports on the US East and Gulf Coast ended, after a new wage agreement was reached – but a backlog of more than 40 ships waiting to offload billions of dollars of #cargo means the pain is not yet over. The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) reached a tentative agreement on wages while also extending the Master Contract until 15 January 2025 to allow further negotiations, in particular around automation at ports. The #strike lasted three days and at 5am (Eastern Time) on 10 October, there were 44 ships queuing to enter affected ports and more than 120 en route. Peter Sand, Xeneta Chief Analyst, said: “A prolonged crisis on this scale would have been toxic for global #supply chains so the market is breathing a sigh of relief. “Closing all ports on the #US East Coast and Gulf Coast – even for just three days – comes with severe consequences. We must now wait to see how quickly the returning workers are able and willing to deal with the huge backlog of ships waiting to offload thousands of containers carrying billions of dollars of goods.” Sand believes the ripple effect of the strike will spread across #global supply chains in the weeks to come. He said: “The dozens of ships delayed on the US East Coast and Gulf Coast will also be late arriving back in the Far East. This will impact schedules towards the end of this year and possibly into 2025 in the run-up to Lunar New Year at the end of January, which traditionally sees an increase in goods shipped out of the Far East. “You cannot miss a scheduled weekly sailing for a #ship carrying 15 000 containers and not expect repercussions for carriers and importers.” Latest data from Xeneta – based on more than 450 million crowd-sourced data points – shows shippers have already been hit by increasing #freight rates as a direct result of strikes. Average spot rates on the most impacted trade from North Europe to US East Coast stand at US$2,900 per FEU (40ft container) on 4 October, an increase of 58% since the end of August. The alternative trade from North Europe to the US West Coast has also been impacted with average spot rates increasing 48% in the same period to stand at USD 4 450 per FEU. Sand has warned the #market will remain challenging in the weeks and months ahead. He said: “There has already been a financial impact for shippers through increasing freight rates on Transatlantic trades at a time when markets on other major trades out of the Far East remain elevated due to conflict in the Red Sea. “It is good news the strike has ended but shippers are not out of the woods just yet. It is only a tentative agreement and automation at ports will remain a major stumbling block.

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Philadelphia’s PSA Penn Terminals receives Liebherr container crane. PSA Penn Terminals in #Philadelphia has received a third Liebherr #ship to shore (STS) crane, expanding its fleet of Liebherr equipment. “This delivery highlights Liebherr #Container Cranes’ position as a trusted partner for #US container #ports. Manufactured in Ireland and supported by our experienced US-based team, our cranes provide secure, dependable, and high-efficiency solutions for ports across the country,” said Winston Ziegler, Head of Sales, Maritime Cranes, Liebherr USA, Co. The new STS crane features a 157 ft (48 m) outreach, a 60 ft (18.288 m) span, and a 50 ft (15 m) back reach. With a lift height of 115 ft (35 m) over rail and a safe working load (SWL) of 66 tonnes. The STS crane is designed to significantly boost operational efficiency and capacity at the terminal. John Brennan, President and CEO of PSA Penn Terminals, commented, “This new Liebherr crane once again demonstrates our lasting commitment to being one of the best equipped, privately owned container #terminals on the US East Coast. These facilities, combined with our dedicated and experienced work force, allow us to provide top-of-the-line efficient and reliable services to our customers.” The delivery of the new machine strengthens the ongoing collaboration between Liebherr and PSA, reinforcing the terminal’s capacity for efficient, high-volume container handling.

South Carolina Ports reopens Leatherman Terminal. South Carolina Ports (SC Ports) announced the reopening of the Leatherman Terminal. Starting on 26 September at 8 a.m. (local time), #SC Ports will restart operations at the Leatherman Terminal gates to receive containers, in preparation for a significant weekly #Asia service launching early next month. Israeli ocean carrier ZIM is set to introduce its ZCP service at Leatherman Terminal, offering shippers a vital weekly connection between Asia and the #US Southeast consumer market with the first-in-Asia call. “The reopening of Leatherman Terminal is a monumental day for our world-class port system. In partnership with the ILA, employers and the greater maritime community, we are thrilled to once again provide excellent port service at Leatherman Terminal for the benefit of our ocean carrier and #cargo owner customers,” stated Barbara Melvin, SC Ports President and CEO. The LNG-powered ZIM Mount Blanc, with a capacity of 15,000 TEUs, is scheduled to arrive at Leatherman Terminal on 6 October. “This weekly service is the first of many to come as we resume operations at Leatherman Terminal, providing more capacity and fluidity for the U.S. East Coast #port market. This first-in-call from Asia is a significant competitive advantage for shippers moving goods through the Port of #Charleston,” added Melvin. Leatherman Terminal, the newest ocean #terminal to open in the United States in over a decade, adds 700,000 TEUs of capacity to Charleston Harbor, with the potential to reach 2.4 million TEUs at full build-out. The ZIM ZCP service, operated by MSC and Maersk, provides direct calls to Charleston along a route that includes Qingdao (#China), Ningbo (China), Shanghai (China), Busan (South Korea), Kingston (Jamaica), Savannah (United States), Norfolk (United States), and back through Kingston, Busan, and Qingdao.

U.S. Moves Forward with Sweeping Tariffs on China Including #Port Cranes. The United States #Trade Representative announced last week it has completed its review of the sweeping tariff increases proposed by the Biden Administration on a wide range of Chinese goods including ship-to-shore cranes used in most #American ports. The Trade Representative had delayed implementation until completing a review and making some modifications, which included a partial win for the American Association of Port Authorities (AAPA). The tariffs cover a wide range of #Chinese goods ranging from semiconductors and steel and aluminum products to #electric vehicles and their batteries, permanent magnets, and a range of medical products including gloves, facemasks, and syringes. Most of the tariffs start immediately while others phase in during 2025 and 2026. The Trade Representative determined to increase the tariffs on Chinese-made ship-to-shore cranes to 25 percent effective in 2024. However, it added an exclusion for contracts executed prior to May 14, 2024, and cranes that enter the United States prior to May 14, 2026. Ports and the port association argued that making the tariffs effective immediately was punishing U.S. port operators without a strong alternative. They said it would raise the costs for port operators or possibly delay critical port #infrastructure investments. The Trade Representative confirmed that comments argued it would not be effective in the elimination of China’s acts and policies in part due to the current dominance of #China over the industry. China’s state-owned Shanghai Zhenhua Heavy Industries (ZPMC) is the target of all the complaints as the company is reported to supply 80 percent of all STS cranes ordered by U.S. ports. The company claims to have 70 percent of the global market which prompted the Biden administration earlier this year to reshore a portion of the manufacturing in the U.S. and support competitive offers to ZPMC. AAPA in July said at least seven U.S. ports currently had 35 STS cranes on order from Chinese manufacturers. All these orders they argued were signed before the tariff was announced. AAPA calculated that the tariff would cost the ports an additional $131 million in new and unexpected costs. AAPA was collecting data on anticipated future purchases but said it had already learned of plans to buy at least 61 additional STS cranes. The hysteria of Chinese-manufactured cranes began in 2023 with accusations of “spy cranes” and remote-control opportunities. Reports said inspections have found cellular modems, giving them an independent connection that bypasses the port's local area network. Last week, a U.S. House of Representatives subcommittee released a report on the threats it perceives from the cranes. AAPA has repeatedly tried to downplay the threats. They argue there are no examples of interference and that limited information is available to the crane and its operator such as the contents of the boxes.