The Port of New York and New Jersey (Port of NY/NJ) expressed optimism for continuous cargo growth this year, despite the ongoing challenges that have presented themselves early on.

The Port Authority of New York and New Jersey (Port of NY/NJ) signalled expectations of a continued uptrend in container volumes at the port — now North America's second-busiest port — in 2024, citing a return to the pre-pandemic restocking cycle in 2024.

"Cargo volume is expected to continue to grow in 2024, as bloated warehouses empty and retailers return to a regular restocking rhythm," Port of NY/NJ said in its recent 2024 State of the Port.

Globally, however, it added that the year is already presenting new challenges at two critical shipping passages.

"If you do anything, pray for rain in Panama," said Bethann Rooney, port director at the Port Authority of New York and New Jersey, alluding to current drought conditions at the Panama Canal.

"But probably more important than praying for rain in Panama is praying for peace in the Middle East," she added, in reference to the ongoing attacks on container ships in the Red Sea.

Nonetheless, Rooney said after getting through the pandemic, the regional supply chain is now "better prepared" to handle these early challenges of 2024.

"There was a little bit of breathing room (in 2023) that I think allowed everybody — our terminal operators, the trucking companies, and others — the opportunity to continue to build out capacity, build out relationships," the port director added, noting that the confidence of its customers in the business and service provided by the port is "very, very positive."

Infrastructure projects underway

To support the expected growth, the port said preparation is underway at the Port of New York and New Jersey, as multiple capital improvement projects kicked off in 2023.

This includes the groundbreaking for the US$220 million Port Street Corridor Improvement Project, overhauling Port Newark's road network to allow for safer, more efficient trucking operations.

The port's on-dock ExpressRail system is also being upgraded to give freight rail operations additional flexibility, and capacity will be completed by midyear 2024, with construction to follow. 

"Perhaps the most impactful project will take place in the harbour itself. In December, the Port Authority approved US$19.2 million to study the next steps as the port and the US Army Corps of Engineers look to deepen the port's shipping channels to 55 feet," the 2024 State of the Port added.

The project would allow the port to accommodate bigger container ships and ease harbour navigation. 

U.S. Army Corps of Engineers Lt. Col. Nick LoRusso said a design agreement for this is expected to be signed this spring, which would allow construction to start in 2027.

State of the NY/NJ Port is "strong"

The port noted that cargo volume at the East Coast's busiest container port throughout the pandemic "surged to unprecedented levels" — more than 25% of 2019 volume, forcing novel solutions and innovative workarounds to handle the glut of goods.

"We're exactly where all of the forecasts indicated that we were going to be," Rooney said. "We've had a look at what our future is like, and we have six or seven years to prepare to handle that volume again."

In 2023, volumes returned to their pre-pandemic trajectory, a 4.4% growth from 2019.

"It is clear that the state of the Port of New York and New Jersey is strong," Rick Cotton, executive director at the Port Authority, added.