The overall slowdown obviously indicates that the US is importing / exporting fewer goods. But some ports are slowing down a lot more than others !
(snip)"CHARLESTON, S.C. -- For years the Port of Charleston was one of the busiest points of entry for ships and goods coming into the U.S., but a global shipping slowdown and competition from rival cities are threatening one of the oldest port economies in the country.(snip)
(snip)"Many of the nation's leading ports have seen a noticeable drop in volumes, particularly in imports, since 2006, after a decade of growth interrupted briefly by a post-Sept. 11, 2001, downturn. The nation's two largest ports for container traffic -- Los Angeles and Long Beach, Calif. -- saw drops of nearly 2% in container tonnage imports in 2007. Long Beach's imports have dropped 13% this year, an amount a spokesman called "unprecedented." Other large ports, such as Houston and Norfolk, Va., also are experiencing drops. The declines mirror a trend across the transportation sector, where freight volumes are slipping at a time when they normally surge for the holiday season.
"It's forcing us to rethink almost every aspect of business," said Joe Harris, spokesman for the Virginia Port Authority, which reported a $3.7 million operating loss for the quarter ended Sept. 30. Mr. Harris said the port is delaying a massive expansion project and considering other cost-saving measures, including postponing building a terminal warehouse.
The impact in Charleston, which has been a major U.S. port since the city's founding in the late 17th century, has been greater than almost anywhere else. As recently as 2005, Charleston handled 12.6 million metric tons of containerized freight, more than any other ports except Los Angeles, Long Beach and the combined New York/New Jersey port complex.
With its relatively deep water and central location in the Southeast, one of the fastest-growing regions of the country, Charleston's port was a key gateway for goods including lumber, electronics and pharmaceutical products.
In recent years, Charleston has been losing market share to more innovative and aggressive East Coast ports, particularly Savannah, Ga., 100 miles to the south. From 2005 to 2006, as large retailers such as Target Corp. and Ikea began building massive distribution centers near Savannah, Charleston's container traffic dropped 9%, followed by a 7% drop in 2007, according to U.S. Department of Transportation statistics.
That has been devastating for local businesses that depend on port traffic, including trucking companies that ship freight to and from the docks, tugboat operators that guide the vessels to and from the harbor, and warehouse operators that temporarily store the freight. As of this year, the port has slipped to eighth place in container tonnage, falling behind Savannah and Norfolk, according to the U.S. Department of Transportation. In 2005 Charleston was in fourth place. Savannah's imports, which have grown by double-digit percentages since 2003, are up 3.2% this year, according to Mr. Roudoi.(snip)
(snip)"Making matters worse, the local dockworkers union is in a dispute with port executives and the international ocean carrier A.P. Moller-Maersk AS, which accounts for nearly a quarter of the port's container business -- or about 240,000 containers a year.
Earlier this month Copenhagen-based Maersk, the world's largest ocean carrier, reported a 3% drop in international volumes in the third quarter. To reduce costs in Charleston, the company wants to route cargo through gates that are staffed by port employees rather than members of the International Longshoremen's Association. The union is resisting, saying such a move would violate a union contract. Maersk says that if costs aren't cut, it will stop using the Charleston port when the company's contract with the port expires at the end of 2010.
That would be cataclysmic for Charleston, say local business leaders. "We were very proud of our status as a significant port," said Robert New, president and chief executive of Charleston Port Services, which ties and unties vessels at the docks. "Now we're just worried about our survival."
Mr. New, whose company services roughly 1,800 ships a year, said he has reduced some of his employees' health-care benefits to compensate for the drop in business in the past year.
Dockworkers are working fewer hours, or sometimes none at all. On a recent midweek morning, Marsha Youngblood went to union headquarters and was disappointed but not surprised to find no work available."(snip)




Bookmarks