- Southern California Ports See Peak Traffic in 2024.
- Import Volumes Surge Across West, East, and Gulf Coasts.
- Resilient Intermodal System Keeps Supply Chain Fluid.
Soaring traffic at the US container gateways and inland intermodal chain in 2024 has been well-handled without significant disruptions, creating confidence that the system may yet endure surges this year to reach record levels analysts said during a session Tuesday held by the Journal of Commerce and S&P Global, reports The Load Star.
Southern California Gateways Experience Peak Container Volumes
North America’s busiest week of 2024, only 10 weeks after the official peak season “Volumes have stayed very strong in 2024.” Larry Gross, president of Gross Transportation Consulting, attributes this to continuing high volumes due to pre-avoidance shipping to and from Asia of impending Jan import tariffs and a potential strike on the East Coast at the same time.
Import Volume Growth by Region
US West Coast ports saw a 20.7% growth in import cargo in the first 10 months of 2024 compared to the same period in 2023. Meanwhile: East Coast gateways saw a 9.7% increase. Gulf Coast gateways experienced a 5.9% increase.
“Overall, US containerized imports grew by 14.8%,” noted Daniel Hackett, partner at Hackett Associates and co-author of the Port Tracker report.
Resilient Intermodal System Performance
Despite elevated traffic levels, the intermodal system showed resilience. Larry Gross observed, “The performance generally has been resilient,” with adequate downstream capacity across drayage, warehousing, and chassis availability.
Gross pointed out, “Intermodal train speeds are a bit below normal, but not catastrophically so,” adding that reduced terminal dwell times and fewer delays for loaded intermodal cars offset this slight weakness.
Challenges with Container Imbalances
Rail carriers faced problems in handling container imbalances, with the deficit of empty cars increasing to an average of 14,921 per month in 2024 from 8,189 in 2023. In October, the deficit reached a peak at 22,014 containers which would be equivalent to over three stack trains per day.
Room for Growth at US Container Gateways
Mark Sisson, senior port planner at AECOM, noted that US ports have room to grow without requiring new facilities. “On a teu-per-1,000ft-wharf basis, the Port of Los Angeles handles 260,000 teu, compared with 391,000 at Vancouver,” he said.
He added, “Pressure on docks could be alleviated by moving containers by truck or rail to offsite locations,” citing the example of BNSF’s integrated facility in Barstow, which will connect to the LA/Long Beach port complex.
Automation Adoption Remains Limited
While automation could improve terminal efficiency, the US has shown limited adoption compared to expectations. “In theory, all terminals could automate, but few have done so, and none outside southern California,” Sisson remarked, noting that automation remains a contentious issue in labour negotiations.
Shifting Trends in US Import Flows
Looking ahead, Larry Gross predicted that “the disconnect between torrid import growth and tepid domestic demand will end,” with import teu growth expected to align more closely with domestic truck demand in the long term.
Additionally, cargo owners are expected to favour east and Gulf Coast gateways. “West to east coast migration will resume, and sourcing from China will continue to diminish, regardless of the incoming US administration,” Gross said.
Rising Market Share of East and Gulf Coast Ports
Ports on the East and Gulf coasts have gained market share in recent years. “Houston has doubled its market share in the past 12 years,” Daniel Hackett noted, adding that New York/New Jersey, Virginia, and Savannah have also seen significant growth.
This shift reflects broader changes in global sourcing patterns, with increased traffic from ASEAN countries and India benefiting East Coast ports.
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Source: The Load Star
