Cargo Statistics: Global Port Tracker, Montreal, Virginia

Global Port Tracker: Retail Imports to Increase 3.5 Percent in May As Negotiations Begin on West Coast Dockworkers Contract

Import volume at top U.S. containerized retail merchandise importing ports is expected to increase 3.5 percent in May as negotiators prepare to begin talks on a new contract for West Coast dockworkers, according to the monthly Global Port Trackerreport released May 7 by the National Retail Federation and Hackett Associates.

Global Port Tracker’s conclusions are based on its survey and analysis of inbound container traffic flows at the ports of Charleston, Hampton Roads, Houston, Long Beach, Los Angeles, Miami, New York/New Jersey, Oakland, Port Everglades, Savannah, Seattle and Tacoma.

"We’re expecting a lot of cargo to move through the ports this summer and we want to make sure there aren't any supply chain disruptions that would impact the cargo flow," NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. "We hope there won’t be any issues, but the sooner labor and management can agree on a new contract, the better it will be for everyone who relies on the West Coast ports."

Representatives of the Pacific Maritime Association and the International Longshore and Warehouse Union are scheduled to begin negotiations this week on a new contract to replace the current agreement that expires June 30. NRF has urged both sides to avoid disruptions that could affect the flow of back-to-school or holiday season merchandise.

U.S. ports followed by Global Port Tracker handled 1.3 million TEUs in March, the latest month for which after-the-fact numbers are available. That was up 5.1 percent from the preceding month and 14.5 percent higher than March 2013.

April is estimated at 1.38 million TEUs, up 6.1 percent from April 2013. Subsequent month forecasts: May – 1.44 million TEUs ( 3.5 percent); June – 1.43 million TEUs ( 5.6 percent); July – 1.49 million TEUs ( 3 percent); August – 1.5 million TEUs ( 0.8 percent); and September – 1.44 million TEUs ( 0.1 percent). The first half 2014 total is expected to reach total 8.2 million TEUs, a 5.1 percent increase.

"Most economic fundamentals are pointing in the direction of continued, sustained recovery in consumer demand and import volumes," said Hackett Associates Founder Ben Hackett. "This is turning out to be the longest period of growth for some time now."

Montreal Port Reports Solid 2013 Performance in a Challenging Economic Environment

The Port of Montreal performed well in 2013 despite difficult economic conditions, President Sylvie Vachon told stakeholders at the port authority’s annual meeting on May 13.

Cargo movement totaled 28.2 million metric tons, a 0.9 percent decrease from 2012. Operating income rose 2 percent to $87.4 million, expenditures by 1 percent to $81.7 million and operating earnings by 19 percent to $5.7 million. Net income after investment income and other extraordinary items totaled $4.2 million.

The Port of Montreal handles containers, liquid bulk and dry bulk, and welcomes cruise passengers. In 2013, container traffic remained stable at 11.9 million tons, down from 12 million tons in 2012, a 1.2 percent decline reflecting "the weakness of the European economy" and the offsetting impact of the port’s increasingly diversified market base.

As for other cargo, the port reports liquid bulk traffic edged down 1.8 percent to 9.5 million tons, which dry bulks increased 0.2 percent to 6.6 million tons, thanks in great part to a 31.9 percent jump in iron ore traffic. Ms. Vachon anticipates continued growth this year for the dry bulk sector, "especially once a new partner, CanEst, starts operating a grain containerization facility at the end of the summer."

The Iberville Passenger Terminal welcomed 69,966 cruise ship passengers and crew members, setting a new record.

During 2013, port authority facilities benefited from a record investment of $55 million, money that was spent to increase container handling capacity by 13 percent, redevelop an area of the petroleum products sector to accommodate larger vessels, and to refurbish the passenger terminal.

During 2013, the port received authorization to welcome vessels up to 44-meters/143-feet wide.

In 2013, the port authority continued to reduce its environmental footprint. Among other things, it used a method to extract, solidify and reuse poor soils and completed the fleet of hybrid vehicles assigned to the security and fire prevention departments.

Virginia Reports Double-Digit Cargo Growth in April

The Port of Virginia experienced across-the-board gains in April by all cargo categories, including a double-digit job in TEU throughput, giving the port its third-best month ever.

John F. Reinhart, CEO and executive director of the Virginia Port Authority, said he was "cautiously optimistic" about the report.

"We are moving forward," he said, "on many of our initiatives and thus far (in May) we are seeing progress on the rail operation at NIT (Norfolk International Terminals), as we have more than half of our new yard hustlers working and supporting that operation. In addition, we are the seeing the benefits of having a portion of PMT (Portsmouth Marine Terminal) operational with the Pasha/Chrysler vehicle exports. We were positive in every category of our monthly report, including an operating profit of $468,000."

The port posted an operating profit in March and April following seven consecutive months of losses. Mr. Reinhart said the port’s focus on operational efficiency and productivity will continue and that many steps are required to move the port into a long-term, positive financial position.

The April data show container throughput totaling 201,390 TEUs, an increase from April 2013 of 12.3 percent that reflected gains of 12.4 percent for exports and 12.1 percent for imports. Also trending higher were containerized cargo ( 12.2 percent), break bulk cargo ( 41.7 percent), barged containers ( 21.8 percent), rail containers ( 13.1 percent), and vehicle units ( 327.3 percent).

Container throughput reached record highs during the first four months of CY 2014 and the first 10 months of the fiscal year that began July 1, 2013. Click here for detail.

"Our service performance is improving, but we have not attained the level required to satisfy our customers and be competitive," Mr. Reinhart said. "Through the work of the Motor Carrier Task Force, we are beginning to see some improvements in turn-times for motor carriers, but we have to become consistent in this area of operation. We have a lot of room for improvement and we are keeping the focus across the port on service and reliability."