Northwest Seaport Alliance sees strong H1 as Jan volumes increase 9pc

NORTHWEST Seaport Alliance (NWSA), a partnership between the ports of Seattle and Tacoma, reported that container freight volumes rose by 9 per cent in January compared to same month last year totalling 288,289 TEU.

NWSA CEO John Wolfe told a recent online conference that January's container numbers showed an 11 per cent increase in imports but a 13.4 per cent decline in exports from 66,410 TEU in 2020 to 57,517 TEU this year.

In reply to a question from American Shipper regarding the reason for the export drop, he said: "When there is congestion at those other gateways, the vessel schedules are so far off that when they get to Seattle-Tacoma, the window of time for them to work the vessel and get back to Asia has been [significantly reduced]. They're in a rush to turn that vessel around to try and get that vessel back on schedule. It has created problems for us.

"The exporters have a very difficult time planning to get their exports into the terminal in time to meet that vessel. The windows for delivery for these vessels are so tight oftentimes they miss that window. That's the primary reason for the drop, the vessel schedules being so far off. We're trying to address that issue because we really value the exports that move through our gateway."

He said he expects "a strong first half for 2021" but would not speculate for the second half of the year, reports AJOT.

In answer to another question, Mr Wolfe said NWSA is not as congested as the Southern California ports of Los Angeles and Long Beach because the two ports collectively annually handle over 17 million TEU compared to NWSA which annually handles around 3.8 million TEU.

Port of Seattle Commission president Fred Felleman noted the NWSA gateway is a "discretionary port," and that only about 25 per cent of the containers that are unloaded are destined for local consumers. The remaining 75 per cent is shipped by rail to easterly destinations such as Chicago.

As a result, Mr Felleman said, NWSA needs to be "scrappy" and "more competitive" and "invest in our infrastructure."

He noted that the new Terminal 5 at the Port of Seattle advances that goal by creating a new modern terminal handling facility with on-dock rail that will speed rail shipments without the need for trucking.

The 200 acre facility will soon be welcoming new container cranes and will support electric shore power equipment so that ships can turn off their diesel engines and switch environmentally friendly shore power operations.

"It also means that we have a much more competitive situation because if your goal is to just get to Chicago, you can do that from any number of ports, and therefore we have to be scrappy and continue to invest in our infrastructure to be able to provide the quality of service that would make us a priority," Mr Felleman said.

The waterfall effect from Southern California port congestion and equipment shortages has caused an ebb of exports from the Pacific Northwest.

The first half of 2021 is forecast at 11.7 million TEU, up 23.3 per cent from the same period in 2020, which experienced a major decline in imports due to Covid-19. Imports saw a total of 22 million TEU in 2020, up 1.9 per cent from 2019's 21.6 million TEU and beating the previous record of 21.8 million TEU recorded in 2018, reports AJOT.

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2021/3/15 10:04:08