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GEORGIA REPORTS EASING OF CONTAINER DEMAND IN NOVEMBER
December 13, 2022
The Georgia Ports Authority said it moved 464,883 twenty-foot equivalent container units in November, a decrease of 6.2% or 30,866 TEUs compared to the same month last year.
In a statement, it noted that compared to November 2019, the Port of Savannah's performance constitutes an increase of 28% over three years. That growth rate is well above GPA's pre-pandemic expansion, which averaged 4% to 5% annually.
"Container trade at U.S. ports is returning to a more sustainable growth pattern, which is a positive development for the logistics industry," said Griff Lynch, GPA executive director.
"Along with adding more than 1 million TEUs of annual capacity, a slight reduction in demand will mean faster vessel service as we work to bring a new big ship berth online at Garden City Terminal in July," Lynch added.
GPA said the impact of inflation and a shift in consumer spending is partially responsible for a reduction in manufacturing and subsequent container demand. Weather also played a role in the November decline.
The Savannah River channel was also closed to the largest vessels for more than three days last month because of adverse weather conditions, including Tropical Storm Nicole.
GPA expects to clear vessel queue by January
"While we are planning for a moderation in the container trade, we expect volumes to remain strong, though shy of the historic highs of the past year," said Joel Wooten, GPA chairman.
"Announcements from automakers and other manufacturers coming to Georgia, as well as an array of their suppliers, will mean healthy increases in trade over the long term."
Lynch said the current lull has allowed Savannah to reduce its vessel queue to 17 container ships, down 43% from Nov. 1, when there were 30 vessels at anchor.
GPA expects to clear the backlog by early January.
The Authority announced last week its intention to renovate the docks at Ocean Terminal in Savannah to provide two additional big ship berths, and transform the 200-acre facility to a container-only operation by 2026.
