- West Coast container volumes increased significantly in 2024, up by 14.7%.
- East Coast ports remain key, but challenges and strikes may favor West Coast recovery.
- Mexican ports are expanding to handle increased trade due to manufacturing relocations.
In the first six months of 2024, the ports of Los Angeles and Long Beach handled a total of 9.02 million teu, representing a 14.7% increase from the 7.87 million teu processed during the same period in 2023. This growth comes after disruptions caused by Covid-19, which shifted market share to the US East Coast, reports Seatrade Maritime.
Impact of Covid-19 and Shifts in Shipping Patterns
The Covid-19 pandemic accelerated a shift in market share to the US East Coast, as ports on the Gulf and eastern seaboard improved their ability to handle larger ships. Eleanor Hadland, senior analyst for ports and terminals at Drewry Shipping Consultants said,“There was a defensive move by US shippers to the East Coast when the West Coast [dockers’] contract negotiations were going on, when those discussions concluded shippers relaxed and some cargo returned to the Californian ports.”
Although West Coast ports have seen a rebound, Hadland expects the long-term shift towards East Coast ports to continue due to population distribution. However, she emphasized that this shift would be a “slow and steady process.”
East Coast ports have not faced industrial action in recent years, but there is a potential threat of strikes from the International Longshoremen’s Association (ILA) after its current contract ends on 30 September. Additionally, disruptions in the Panama Canal and the Red Sea could benefit West Coast ports.
Growth in Mexican Ports
Mexican ports such as Lázaro Cárdenas and Manzanillo have seen significant growth, adding 460,000 teu to their combined volume in the first half of 2024. This growth is driven by new manufacturing relocating to Mexico, which is becoming a key market.
Both Mexican ports are expanding to meet future growth demands. Manzanillo’s SSA terminal will add 300,000 teu capacity by 2025, bringing its total to 2.4 million teu, while ICTSI’s facility will add 800,000 teu by 2027. At Lázaro Cárdenas, capacity will double to 2.2 million teu by 2028.
“Terminals are adding inland investments to the upgraded facilities offering a better route to [the US] market, including improvements to free zones and upgrades at the border,” explained Hadland.
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Source: Seatrade Maritime
