Exciting times for West Coast ports

ExcitingExciting timestimes forfor WestWest CoastCoast portsports

ClaireInstonedeliversWPD’sannualport surveyonU.S.WestCoastports.

aking a look at last year ’ s cargo statistics for the biggest ports on the

U.S.West Coast shows universal positive results.The Port of Oakland hit a new import record in 2021, while volumes at NWSA improved, with the Port of Long Beach ending the year with a 15.7% increase in container volume. Moreover, the Port of Los Angeles broke a new record for cargo throughput in 2021, processing more volume than any other port in theWestern Hemisphere. Not to mention, San Diego is experiencing a period of growth and is in a position to have the heaviest lift capacity on the west coast.

It will certainly be interesting to see where things lie at the end of 2022 in terms of capacity, cargo throughput and trends in container traffic. Something that will likely have an effect on all West Coast ports going forward is America ’ s Marine Highway Project. California ’ s road and railway network is running at near or over capacity and remains insufficient to satisfy requirements.Therefore, the Port of San Diego, Port of Bellingham,Washington, CalTrans and Port of Southern Oregon teamed up to explore the possibilities of creating a marine Highway that hugs the west coast of the United States.The project aim is to shift the heaviest cargoes from land-based transportation systems to sea.The project was given the name M5 in reference to a Maritime Interstate route.

The Port of San Diego along with the Port of Bellingham received federal designation for the Marine project.This, essentially, will start up in the next few years and offer services to the end points along the west coast.The benefits of this service will primarily be environmental savings getting many trucks off the roads and off the Interstate 5 (I5).What that would do is allow shippers to use other ports as gateway ports moving out of the west coast as opposed to a truck option. So, the northbound move may offer options to ship out of Canada, the southbound route from the Oregon, Washington ports may offer options for shippers to come into San Diego and ship out of either Ensinando or Long Beach. Its designed as a lumber move southbound then Northbound empty, container repositioning or laden containers depending on the need. This is an exciting project - and time - for the west coast ports of the U.S. it seems. We look forward to bringing readers a further update in our next annual survey. For now, however, let’ s take a look at the performance of each port across 2021…

NWSA

The Northwest Seaport Alliance (NWSA) full-year 2021 volumes improved 12.5% to 3,736,206 TEUs, with full imports growing 16.8% and full exports declining 12.5%. Full imports were fuelled by strong consumer demand, while full exports were impacted by a shortage of equipment and space. Domestic volumes grew 8.7% compared to 2020.Alaska volumes increased 5.6% while Hawaii volumes grew 22.8%.

Meanwhile, total breakbulk grew 25.6% over 2020 volume to 366,184 metric tonnes making 2021 the highest breakbulk volumes in NWSA history. Since 2015, the NWSA has operated breakbulk cargo facilities at East Blair 1 andTerminal 7 inTacoma.The majority of breakbulk cargo in 2021 was comprised of ro-ro (roll-on, roll-off) cargo with construction equipment making up 67% of the volume.

Courtesy of Port of Los Angeles

The surge of breakbulk cargo can be attributed to new customers and carriers calling the NWSA gateway as well as rebounding volumes from Covid-impacted operations in 2020. Additionally, high containerised cargo rates incentivised container cargo shippers to seek creative transportation solutions, utilising ro-ro. Breakbulk is expected to remain high as increased federal infrastructure funding drives additional demands for construction equipment to work newly funded infrastructure projects.

Towards the end of 2021 Terminal 5 (T5), in the Seattle Harbour, re-opened for business with the arrival of the MSC Monterey.Completion of Phase One of theT5 Modernisation Project adds berth and terminal capacity to the gateway while expanding big-ship handling capabilities. The modernised facility features on-dock rail, shore power, a reconfigured berth, four new super-post Panamax cranes, and reefer plugs.

Looking at the gateway ’ s most recent figures, NWSA TEU volumes in August of this year showed improvement compared with July with laden imports up 15% and laden exports up 19%. So far,YTD volumes remain down. Vessel delays and omissions due to congestion in other ports continue to negatively impact volumes at the NWSA. Import volumes are also reflecting softening consumer demand for certain commodities.Total container volume for August decreased 10.4% to 280,436 TEUs, with full imports declining 11.1% and full exports declining 9.9% year-over-year. Year-to-date volumes declined 6.2% to 2,347,740TEUs, with full imports and exports declining 10.4% and 21.8%, respectively. Domestic container volumes increased 0.8% compared toYTD August 2021.YTD August breakbulk cargo volumes grew 34.3% for 318,044 metric tonnes.

Oakland

Containerised, loaded import cargo volume hit a new record at the Port of Oakland in 2021. The port states that it handled the equivalent of 1.05 million 20-foot import containers in 2021. That was the most in Oakland’ s 94-year history and 6% above 2020 totals. Record import volume was achieved despite supply chain misery that plagued ports worldwide.

Late-arriving ships, cancelled voyages and weeks-long delays at some ports hampered freight movement. Oakland’ s 2021 export volume declined 8% year-over-year because of the disruptions.The facility handled a total of 2.4 million TEUs in 2021.The port said unprecedented U.S. consumer spending drove last year ’ s import surge. Shipping lines devote more energy and resources to imports because they ’ re better paying.The port blamed the drop in exports on supply chain challenges: voyage cancellations reducing the number of ships able to move exports overseas; and a cargo container shortage for exports.

One number in the port’ s year-end cargo report underscored the dichotomy in supply chain impact. Oakland reported that 55% of its 2021 cargo loads were imports; only 45% were exports. Historically, Oakland’ s business split is 50/50.The port predicted more disruption in 2022 as trade growth continues to outpace supply chain capacity. Oakland responded with two announcements: 1) a queueing system for arriving ships; and 2) an exclusive empty container yard for exporters.

Oakland said it’ s collaborating with shipping lines to restore vessel services suspended in 2021. Some carriers skipped Oakland because of crippling delays at Southern California ports, the port explained. Services began returning by the fourth quarter. The port has previously stated that it was lobbying to recoup the remainder this year. According to the facility, more vessel calls would mean greater opportunity for exporters to reach overseas markets. In recent news, Oakland’ s total loaded container volume dropped by 8% inAugust of this year compared to August 2021. 155,682 loadedTEUs transited the port, compared to 169,602 TEUs in August 2021. Loaded imports declined by 10.2% recording 87,844 TEUs compared to 97,850 in August last year. Loaded export containers experienced a 5.5% decline, with 67,838TEUs passing through the port inAugust compared to 71,753 TEUs in August 2021. Full imports in 2022 year-to-date were down by 5% compared to the first 8 months of 2021.

“We ’ re beginning to see signs of supply chain recovery after multi-year pandemic-related congestion, but we still have a way to go, ” said Port of Oakland Maritime Director Bryan Brandes. “We will continue working with our industry partners to boost cargo fluidity and vessel service. ”

Freight rates for cargo shipped from Asia to the U.S.continue to drop pointing to a softening in demand for imports. Continued congestion at container yards may still be a factor in ship delays at the Oakland Seaport, with most docked vessels staying two or more days. In addition to notable volumes,August of this year also marked the inaugural call of the MV George III to Oakland.The ship is the first Liquefied Natural Gas (LNG) powered vessel to call the Californian facility.

Long Beach

The Port of Long Beach set a new record in 2021 by moving 9.38 million cargo containers as dockworkers and terminal operators worked to clear the docks amid an historic, pandemic-induced import surge.The port ended 2021 with 9,384,368 TEUs processed, a 15.7% increase from the previous record of more than 8.11 million TEUs moved in 2020. Imports jumped 14.6% to 4,581,846 TEUs and exports declined 2.6% to 1,437,916 TEUs compared to last year. Empty containers moving through the port were up 27.5% to 3,364,606 TEUs.

“This incredible milestone was achieved by the skilled workers who keep goods moving through the supply chain as we continue to seek solutions to improve efficiency, attract business and build for the future, ” said Port of Long Beach Executive Director Mario Cordero.

“I look forward to enhancing productivity in 2022 by advancing our move toward 24-7 terminal operations, deploying data-sharing technologies for our industry partners, and continuing our infrastructure improvements. ” The significant increase in cargo was driven by evolving consumer spending habits during the COVID-19 pandemic, when demand for vacations, dining out and entertainment declined due to health precautions and pivoted toward home office supplies, furniture and exercise equipment.

The Port of Long Beach had 980 container vessel calls in 2021, down from 1,042 a year earlier due to the elimination of “dual calls ” for some shipping services that moved up and down the West Coast.The port collaborated with stakeholders at the local, state and federal levels to enhance cargo movements, including: expanding hours of operation; creating temporary staging areas for full containers; and encouraging truck drivers to drop off export containers when picking up an import.

Looking at recent cargo volume in August of this year, Port of Long Beach fell just short of another record month as a slowdown in consumer spending in the U.S. continued. The facility moved 806,940 TEUs, down just 764 TEUs - 0.1% - from August 2021, which was the busiest August ever. Imports were down 5.6% to 384,530 TEUs and exports increased 1.6% to 121,408 TEUs. Empty containers moved through the port increased 7.2% to 301,001 TEUs.The port moved 6,600,560 TEUs during the first eight months of 2022, up 4% from the same period last year.

Most recently in September, Long Beach was named the best West Coast Seaport in North America for the fourth consecutive year by Asia Cargo News. “To be named best West Coast Seaport in North America for the fourth time is a fantastic honour, ” said Cordero.

Los Angeles

Total container volume for the Port of Los Angeles in 2021 hit 10,677,610 TEUs - a new record for cargo throughput, processing more volume than any port in the Western Hemisphere.The 2021 total is about 13% more than its previous record set in 2018. In November last year, cargo volume dipped 8.8% to 811,460 TEUs compared to the previous year. Half of the 86 container vessels that arrived in November carried less than 5,300-TEU capacity. Smaller vessels can take nearly as long to process as larger ones and was a contributing factor in the year-over-year monthly decline. November imports landed at 403,444 TEUs, a 13.2% decline compared to the previous year.

Overall, however, 2021 imports achieved an all-time record of about 5.5 million TEUs, 13% higher than the 2018 import record. Eleven months into 2021, the port had processed 9,891,021 TEUs, 18.7% more than the same time the previous year. Los Angeles is North America ’ s leading seaport by container volume and cargo value.

After record-breaking cargo volume in 2021 and the first half of 2022, the import surge at the Port of Los Angeles slowed in August of this year.The port handled an estimated 806,000 TEUs, approximately 15% less than the same period a year ago. “Some goods that usually arrive in August the for the autumn and winter season shipped earlier to make sure they reached their destination in time, ” Port of Los Angeles Executive Director Gene Seroka stated.

“Additionally, inflationary concerns and elevated inventory levels have made some retailers and e-commerce sellers more cautious. We ’ ve been able to nearly eliminate the backlog of ships waiting to enter the port by 90% compared to earlier this year, ” Seroka added. “We ’ ve got capacity on our terminals and the ability to handle cargo coming in more efficiently than last holiday season. ”

August 2022 loaded imports reached an estimated 404,000 TEUs compared to the previous year, a decrease of about 17%. Loaded exports reached an estimated 100,000 TEUs, a 1% increase drop compared to last August. Empty containers landed at an estimated 301,000 TEUs, an 18% decline compared to last year. Eight months into 2022, the Port of Los Angeles had moved an estimated 7.2 million TEUs, down about 1.6% from last year ’ s record pace.

San Diego

California ’ s fourth largest port is experiencing a period of continued growth and inward investment and is fighting off the worst economic effects of the global pandemic. Whilst we don ’t have a full breakdown of 2021 volumes, we can report that the facility ’ s most recent cargo throughput has on the whole remained static with a 7% decrease in breakbulk, a 5% decrease in RoRo traffic and a 54% decrease in military traffic. Moreover, containers have improved over the 2021 figures by 3% and bulk by 1%. Most recently, one of the port’ s terminals - Tenth Avenue Marine - secured a highly selective USD10 million TIGER grant which is partly being used to undertake the long-term market driven redevelopment process for the facility.

Moreover, in March of this year, the arrival of a pair of new all-electric Konecranes Gottwald Generation 6 mobile harbour cranes with a lift of 400 MTs made history as the first all-electric crane set in the United States. The order, worth $14 million, replaced the port’ s existing cranes that had a capacity of around 250/260 metric tonnes.

Speaking on the additional capability, Greg Borrossay, Principal Maritime Business Development, Port of San Diego, said: “This is going to put the Port of San Diego in the position of being able to handle a great deal of project cargo including transformers, solar, wind, machinery that needs to go to inland locations.When they arrive and once they are up and running that will put San Diego in a position to have the heaviest lift capacity on the west coast. It’ s a big game changer for us and we ’ re very excited. ”

Looking to the future,Tenth Avenue is in the midst of a three-phase modernisation plan. “We ’ ve already completed phase one, which represented lay down space and mobility on the dock. Phase two is going to commence shortly and that will be an update of the gate and entrance and lay down area and also includes more rail and better access, ” confirmed Borrossay.

Another recent development at the facility is the start-up of the ForeignTrade Zone (FTZ). The FTZ is a valuable tool in San Diego ’ s toolbox to help defer and reduce duties and added logistical benefits for importers and exporters.

“We ’ ve had increases from auto manufacturers. We are using the FTZ actively now for one customer and talking to others about possible exports or an import that comes in, gets reworked and then brought back to the terminal for re-export.This is a creative way for some of our global shippers to reduce their costs and to defer or reduce duties, ” explains Borrossay.

PortPort ofof MilfordMilford HavenHaven breaksbreaks groundground onon keykey phasephase ofof marinemarine renewablerenewable energyenergy projectproject

WPDreports…

he construction of a new supersize slipway and new workboat pontoons is now underway at Pembroke Port.It marks a big step forward in the realisation of the Port of Milford Haven ’ s vision for the Milford Haven Waterway to play a vital role in driving new green growth across the region, while supporting the country ’ s transition to a net zero future.The Port of Milford Haven is the UK’ s top energy port and Wales ’ busiest port handling around 20% of Britain ’ s seaborne trade in oil and gas. It is widely recognised in the industry as the energy capital of the UK.

The new slipway will provide maximum flexibility for the launch and recovery of marine energy devices and vessels, while the pontoons will strengthen the port’ s operations and maintenance proposition for the floating offshore wind (FLOW) industry.

Commercial Director at Milford Haven, Steve Edwards, said: “It’ s fantastic to see this development underway at Pembroke Port. The new upgraded spaces and facilities will be perfect for the growing low carbon industry around the Celtic Sea as well as the supply chain companies that will benefit from the opportunities created here. ” “We ’ re looking forward to seeing huge changes over the next eighteen months, working with industry and academia to maximise local and regional benefits. ”

The works sit alongside the renovation of the Annexes attached to the Sunderland Hangars.These are now midway through construction and will create new office and workshop spaces for industry. Later phases will focus on creating large scale laydown spaces for device fabrication and development.

The modernisation of the port’ s infrastructure forms part of the Pembroke Dock Marine project, a £60m partnership between the Port of Milford Haven, Offshore Renewable Energy Catapult, Marine Energy Wales and Celtic Sea Power.The project is funded by the UK Government and Welsh Government through the Swansea Bay City Deal, and via the public and private sectors. It is also part funded by the European Regional Development Fund through the Welsh Government.

This collaborative platform has already attracted companies from across the globe who are spearheading new research, development, and manufacturing in marine energy power generation, with an appetite to do much more. The Offshore Renewable Energy Catapult, the UK’ s leading technology, innovation and research centre for renewable offshore energy, has also demonstrated its confidence in the area ’ s potential with the development of a multi-million pound Marine Energy Engineering Centre of Excellence based at Pembroke Dock.

Cllr Paul Miller, Pembrokeshire County Council Deputy Leader and Cabinet Member for Place, the Region and Climate Change,said: “The Haven Waterway is inextricably linked to the health of the Pembrokeshire economy.We need to invest in the waterway in order to sustain employment but also to ensure it remains the UKs leading energy port. Up to 30% of the UK’ s gas today, but also Green/Blue Hydrogen and Floating Wind Generated electricity tomorrow.These investments are the foundation upon which we hope the next generation of energy industry is built and along with it, the next generation of energy jobs. ”

Civil engineering firm BAM Nuttall has been appointed to construct the new slipway and workboat pontoons.

Representatives from across the region came together to celebrate the start of the construction.