US East Coast seaports are seeing dramatic increases in cargo volumes. The reason: shippers are looking for options to congested West Coast gateways, the US dollar is strong and imports are escalating. But not all is rosy.
The Port of New York and New Jersey’s Port Newark Container Terminal and Global Container Terminal-Bayonne, for example, have critical congestion issues. Both terminals recently began handling larger ships in addition to extra vessels deployed to carry goods in response to the gridlocked West Coast ports.
The steady increase in volumes at the terminals has led to much longer processing times, serious efficiency reductions, and significant congestion. Trucks calling at GCT-Bayonne have faced multi-hour delays and, at times, lines six miles long. Drayage drivers have demanded longer gate hours and more lenient demurrage rules to ease the congestion.
In mid April, the Association of Bi-State Motor Carriers called for an immediate three-day extension of free time for all containers at GCT-Bayonne. Further, it asked the PANYNJ to direct GCT-Bayonne to begin re-routing incoming ships to its New York Container Terminal location until this container backlog in Bayonne can be properly addressed and remedied.”
Local media reported GCT-Bayonne officials blaming the congestion on truck volume surges that created long lines at gates and congestion inside terminals.
Escalating the problem has been recent increases in import volumes that have resulted in an overwhelming number of empty containers.
GCT-Bayonne is working on launching a truck management system by mid-year that should level out peaks and valleys of truck arrivals. The system was included in 23 recommendations presented last year by an industry wide port performance task force.
Meanwhile, some steamship lines are requiring that empty containers be delivered to off-terminal depots.

Stormy Weather
The Port of Virginia hit an all-time 16% record high for containerized freight handled in March compared to March 2013. Joe Harris, Virginia Port Authority spokesman, attributes this largely to the improved economy. But the good news came with its headaches.
With the flood of shipments, the port was also hit with back-to-back late spring snow storms. This resulted in a nearly two-month backlog of cargo.
“We lost productivity right at a time when we were catching up,” says Harris. “Suddenly, we found ourselves cargo dense.”
To counter the problem, the Port is implementing a series of congestion mitigation efforts that it relays to the media and shipping media on a regular basis. Those measures include rolling out equipment such as 400, 40-foot chassis; use of an inter-terminal barge during weekends to reduce drayage between the terminals and stack density at Virginia International Gateway (VIG) and Norfolk International Terminal (NIT); temporarily reducing the window for delivery of exports to 7 from 9 days to allow VIG operations team time to reduce the density in terminal stacks, which were at capacity; and using Portsmouth Marine Terminal (PMT) for export cargo where on-dock rail is fully operational. Five new top-loaders are being delivered to PMT.
In addition, the Port is requesting that ocean carriers evacuate as much of their cargo from the terminals as possible.
For now, Harris does not see a slowdown in the volume. “We are at our all time busiest in our history,” he says. “We did not even see a breather during the Chinese New Year.”

Smoother Sailing
Georgia Ports Authority’s Port of Savannah reached an unprecedented 28% increase in cargo handled in March compared to March 2013, but not debilitating traffic congestion like New York or Virginia.
GPA Executive Director Curtis Foltz attributes the growth to diverted West Coast cargo, the strong US economy, plus the fact the US Southeast market is experiencing growth from increased manufacturing and changing demographics.
“This region is growing faster than any other part of country,” Flotz says. “It’s a tremendous year for us. We will end up in a year that will exceed our growth rate expectations. We are seeing volumes that we didn’t anticipate having until 2018.”
The GPA had anticipated growth in the 4.5% range, but officials expect to finish the fiscal year at 15% or better.
Foltz attributes the Port of Savannah’s success at handling the large increase in cargo to future planning. “GPA works off a 10-year strategic capital model every year,” he reports. “The projects that we build in a year aren’t about the demand we see today, but that we anticipate two or three years out.”
To stay ahead of the sudden influx of cargo, however, Foltz admits that “people clearly had to be added.” “We had to add hours in terms of our staffing, but not add hours of operation,” he says.
Foltz also reveals that in January when GPA started to forecast increased volumes, it put together a mitigation plan that outlined a plan of action. “All performed well,” he says. “As a result, we are one of few ports that is operating as ‘business as usual’ during these extremely strong volumes.”

Future Positioning
Port Director Juan Kuryla reports that cargo volumes are up around 12% at PortMiami, which he attributes to diverted cargo from the West Coast, an improved economy and regional services via King Ocean and a vessel sharing agreement between Seaboard Marine and Crowley Maritime.
Like Savannah, the port has experienced no congestion issues. “We are not close to being at capacity, and can handle additional business,” Kuryla says.
The focus at PortMiami today is to position Florida and the seaport as a destination for the larger cargo vessels – those with around 13,000 TEU capacity that will traverse the new expanded Panama Canal within a year.
“We are hoping that the steamship lines will use PortMiami as their first call once they go through the Canal,” Kuryla says. “We offer a great incentive package in terms of the rates we charge. We have also discussed with US Customs and Boarder Protection (CBP) plans for expedited and the movement of transshipped cargo through PortMiami.”
A plus, as of August 2014 PortMiami has a fully operational on-dock rail program with its partners Florida East Coast Railway (FEC). “This makes it possible to take up to 200,000 containers per year directly off the port on train and have it connect with 70% if the US population in four days or less.”
FEC President and CEO James Hertwig explains that FEC’s 351-mile freight rail line is the exclusive rail provider for PortMiami, Port Everglades, and Port of Palm Beach. Key to its system, FEC connects to the national CSX and Norfolk Southern (NS) railroad networks in Jacksonville.
“This makes it possible to provide carload and door-to-door intermodal solutions across North America to customers who demand cost-effective and premium quality service,” Hertwig says.
Other key improvement at the port is a new tunnel, completed in July, which connects the island port to the interstate system rather than having to go over a bridge. “This allows for more efficient passenger and truck traffic to and from the port,” Kuryla says.
In July, PortMiami should also complete its Deep Dredge project that will bring the Port’s main harbor channel to a depth of -50/52 feet. “That will make PortMiami the only major logistics hub south of Virginia capable of handling fully laden post-Panamax vessels,” says Kuryla.
PortMiami has also purchased four additional Super Post-Panamax gantry cranes able to handle cargo ships with a capacity of over 10,000 TEUs. The four new cranes bring the Port’s total to 13, six of which are Super Post-Panamax.
"With this additional equipment, our capacity could reach as high as 2.5 to 3 million TEUS,” Kuyrla remarks.

By Karen E. Thuermer
Correspondent | Washington