U.S. ports lag behind neighboring foreign ports

Federal Maritime Commissioner Richard A. Lidinsky Jr. said that ports in the United States must continue to expand and improve to handle rising container volumes in order to stay competitive with neighboring foreign ports.

   Federal Maritime Commissioner Richard A. Lidinsky Jr. has released a fourth annual update on the diversion of containerized cargo moving to and from the United States through Canadian and Mexican seaports.
   The report noted that 2015 was the second straight year in which neighboring foreign seaports experienced larger inbound container growth than ports on the U.S. West Coast.
   “It is clear that in order to stay competitive with neighboring foreign ports, U.S. ports must continue to expand and improve to handle rising container volume of the coming years,” Lidinsky wrote.
   The report said:
     • Mexican ports led North American inbound containerized trade with a growth rate of 9.9 percent year-over-year increase, compared to a 9.2 percent year-over-year increase in 2014;
     • Canadian ports saw a 6.8 percent year-over-year increase in inbound containerized trade growth, compared to a 7.0 percent year-over-year increase in 2014;
     • And U.S. ports saw a 3.8 percent year-over-year increase in inbound containerized trade growth, compared to a 6.1 percent year-over-year increase in 2014.
   However, all was not gloom. The report said that on a positive note, the Northwest Seaport Alliance, created last year when the Port of Seattle and Port of Tacoma decided to combine their seaport operations, saw containerized imports increase 23.1 percent year-over-year.
   Meanwhile, the ports of Los Angeles, Long Beach and Oakland saw container volumes drop by 7.4 percent, 1.1 percent and 5.5 percent, respectively, as they dealt with congestion and cargo diversion during the difficult contract negotiations between the International Longshore and Warehouse Union and employers.
   Seattle and Tacoma have seen inbound rail cargo volumes beyond their range decrease from 60-70 percent of total imports to 50-55 percent of total imports, the report noted.
   In addition, the report expressed how cargo diversion is not new.
   “For years, foreign shippers have been directing vessels into Canadian and Mexican ports because of the benefits they offer as another route into mainland United States,” the report said. “Over roughly the past 10 years, as the Port of Prince Rupert’s container operations have gone on line, U.S. West Coast cargo volumes have decreased.”