New York Port Breaks Trade Record, But California Comes Back

The Ports of New York and New Jersey moved approximately 9.5 million TEUs (20-foot equivalent units) in 2022. This is the first time in its history that the port has broken his 9 million container mark and is another sign of its growing importance in his global supply chain. Because more trade moved away from the West Coast.

The Port of New York has increased the number of containers moved each year since 2017, and 2022 in particular has benefited from the threat of labor strikes in West Coast ports, forcing logistics managers to reroute trade. I was.

The Ports of New York and New Jersey came second overall, but recorded a total of 9,493,664,00 total containers processed, behind only the Port of Los Angeles with 9,911,158 TEUs. New York takes first place Away from California, the busiest port in the nation. The Port of Long Beach moved 9.13 million TEUs last year.

“These 9.5 million TEUs are more than 27% of 2019 levels,” said Bethann Rooney, port director for the Port of New York and New Jersey. “This is an impressive growth rate compared to our past annual growth rate of 3.5%.”

East coast and Gulf ports Invest over the years to grow your market share permanently. The Port of New York plans to ramp up operations to handle more freight truck shipments, and Rooney said only 36% of his available time is currently being used to receive cargo on trucks. says no.

“This is not sustainable when processing 14 million TEUs in the not too distant future,” she said.The 24/7 framework will need to develop over time, but “we need to do something new now,” she said. [24/7] We need to make significant changes and investments now, but we need to start thinking about how to get there step by step,” she added.

But the West Coast has an advantage in sea transit times, which some experts say will eventually lead to more trade returning to California. labor issues Decay.

Union Pacific Chief Executive Lance Fritz told CNBC on Tuesday that his company is hearing more positive developments from labor talks, saying that “temperatures are relatively cool” and that the Port of Los Angeles and Long Beach will continue to operate. The port’s executive director said he hopes to reach an agreement, although the timeline remains unclear. Flexport CEO Ryan Petersen CNBC recently told CNBC that the East Coast initiative “will continue until a deal is signed…hopefully soon….if it stabilizes on the West Coast, it really makes sense to spend an extra two weeks.” “There is no,” he said.

For the first time in four months, New York handled fewer containers than the Port of Los Angeles, moving 613,011 containers against LA’s 728,871 in December.

“We’ve seen a sharp decline in sales volumes and markets since October,” Rooney said. “We expect more normalized levels in the second half of the year.”

In the recent CNBC supply chain investigation, nearly a third of logistics managers at major companies and trade associations say they don’t know how many trades they’ll bring back to the West Coast after a critical labor contract is signed. During the week of December 12-19, the study surveyed companies that are members of the National Retail Federation, the Apparel and Footwear Association of America, the Supply Chain Management Professional Council, the Pacific Coast Council, and the Agricultural Transportation Coalition. We questioned his 341 logistics managers. New England Enterprise Coalition for Trade.

Overall trade volumes are softening in most major categories, as evidenced by Union Pacific’s earnings earlier this week. This impacts the revenues of railroad and trucking companies that are paid for Union Pacific’s Fritz told CNBC on Tuesday that inland freight movement is an opportunity, unlike the battle between coastal ports, with overall freight volumes declining and both the housing market and consumers “instability.” Consumers are “honking their horns,” he said.