Container volumes through NWSA grew 5.6 % through April after dropping 12.1 % in 2023 . Shutterstock . com
Recovering from 2023
The ports of Seattle and Tacoma , like other US ports , experienced a sharp drop in volumes last year as US imports from Asia declined almost 13 % from 2022 according to PIERS , a sister product of the Journal of Commerce within S & P Global . West Coast ports were especially hard-hit as the 16-month coastwide contract negotiations between the International Longshore and Warehouse Union ( ILWU ) and West Coast employers caused a shift of some discretionary cargo to ports along the East and Gulf coasts .
The NWSA ’ s share of US imports from Asia in December had declined to 5.2 % from 5.7 % in December 2022 , according to PIERS . But by this April , the market share increased to 6.5 % as discretionary cargo returned to the West Coast . Seattle and Tacoma are also attracting some US-destined cargo from importers who are concerned about the threat of a rail strike in Canada .
“ We ’ re seeing an uptick in our import rail traffic ,” Bellerud said .
An NWSA spokesperson said an analysis by the port shows that discretionary import cargo using the gateway is up 4 % this year through April .
The port authority is working with terminal operators , railroads , shippers and other stakeholders to ensure the port-related supply chain is able to handle what is expected to be a strong peak season this summer and fall , Bellerud said .
In the Global Port Tracker report published June 10 , US retailers upgraded their forecast for US imports this peak season through October based on their projection for an increase in consumer spending of between 2.5 % and 3.5 % over last year .
Rail car shortage addressed
Seattle and Tacoma , like other West Coast ports , had struggled the past few months with a shortage of rail cars needed to move inland point intermodal ( IPI ) containers to
www . joc . com destinations in the eastern half of the country . As a result , a backlog of IPI containers developed at the port ’ s marine terminals . That problem has been corrected with BNSF and Union Pacific railroads positioning sufficient rail cars to the gateway , Bellerud said .
Rail container dwell times of under three days in Seattle-Tacoma in April were the shortest of any port on the West Coast of North America , he said . The average rail container dwell time in the Los Angeles-Long Beach port complex was 4.55 days in April , according to the Pacific Merchant Shipping Association , while the average dwell in Vancouver was 6.5 days , according to the port ’ s website .
“ Our gateway is under-utilized and is eager for business .”
Meanwhile , as container volumes increase , terminal operators are working with the ILWU locals , shippers and local warehouses to extend gates as needed to handle cargo surges , said Dustin Stoker , president of Husky Terminal in Tacoma .
Husky in late May and early June began offering Saturday gates and implemented “ double-flex ” gate times in the mornings . Under the coastwide ILWU contract , terminal operators on the West Coast can not only offer a flex gate , which opens at 7 a . m . rather than the normal 8 a . m ., but can now offer a double-flex gate that opens at 6 a . m . Some drayage operators prefer starting the day early to avoid rush-hour vehicular traffic on the freeways .
Stoker said Husky may experiment with a 3 a . m . to 8 a . m . “ hoot gate ” if there is enough interest from warehouse operators and truckers . “ Ultimately , it ’ s whatever works best across all of the stakeholders ,” he said .
email : bill . mongelluzzo @ spglobal . com
July 1 , 2024 | Journal of Commerce 23