- The ratio dropped to 0.88 in December 2022, favouring East Coast ports.
- Panama Canal congestion pushed shippers toward faster West Coast routes.
- Shippers opted for quicker Asia–US West Coast routes with buffer time.
Until the end of 2022, the trend benefited the East Coast ports, with the ratio constantly decreasing. Its lowest level saw the ratio reduce to 0.88 in December 2022, reports Sea Intelligence.
Return to Parity in 2023
After this fall, the ratio recovered to parity in mid-2023. This change, though, was within the usual volatility over the last decade. In the following months, the trend did not continue downwards, and the ratio settled between 1.0 and 1.1 in favour of the West Coast ports.
The ratio made a sharp rise in 2024
As opposed to past fluctuations, the latter half of 2024 witnessed a steep rise in the ratio. It touched 1.22 in October 2024 and continued at 1.20 in November and December.
Reasons Behind the Change
The timing of this spike in West Coast port volumes points toward front-loading of peak season cargo as a major contributor. This change was probably a reaction to a predicted US East Coast port strike.
Impact of Shipping Route Challenges
Under normal circumstances, shippers would have front-loaded cargo to East Coast ports. However, two key challenges influenced their decisions:
- Panama Canal Congestion – Increasing congestion made the traditional route less viable.
- Longer Transit Times via the Cape of Good Hope – This alternative route added significant delays.
To mitigate these issues, shippers chose the faster Eastbound Asia–US West Coast route, allowing enough buffer time to transport cargo from the West Coast to the East Coast.
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Source: Sea Intelligence
