Issue link: https://pma.uberflip.com/i/1232346
ADDRESSING COMPETITION While West Coast ports continue to be #1 in North America, competition from ports in Canada, the East Coast and the Gulf of Mexico is intensifying. Nowhere is the evidence of this growing competition more dramatic than in Southern California. The chart on the right shows the Los Angeles and Long Beach ports' share of U.S.-bound containerized cargo imported from Asia fell from 56% in 2003 to 46% in 2018. Conversely, the East Coast and Gulf Coast ports now handle about 41% of U.S. Asian imports, up from just 27% in 2003. The market share losses are expected to continue, with Southern California's share dropping to 42% by 2030, according to a report by University of California Professor Dr. Michael Nacht. The American Association of Port Authorities released a port cargo growth chart showing a 12-year trend, from 2006 to 2018. That chart, seen below, shows that annual growth at the San Pedro ports has lagged behind the competition while ports including Savannah, the Canadian West Coast and Houston have soared. Data from FreightWaves SONAR platform underscores the severity of the problem. One metric showed a one-third decline in 40-foot containers moving via rail from L.A. to Chicago in 2019. Another showed that customs filings were down 18% in Southern California – a sobering contrast to the 21% increase in New Jersey. In another revealing development, the Port of New York and New Jersey overtook Long Beach as the nation's #2 container port in 2019 as measured by loaded containers handled – the first such change in ranking in 20 years. 10% 20% 30% 40% 60% 50% 2003 2006 2009 2012 2015 2018 2021 2024 2027 2030 56% 42% 11% 17% 46% 27% Pacific Southwest Pacific Northwest & NorCal East Coast & Gulf Coast Market Share of Total U.S. Asian Imported Containerized Cargo, 2003-2030 (Projected 2019 To 2030) Source: Martin Associates 101% 94% 68% 40% 125% 100% 75% 50% 25% 0% -25% Savannah Total Canada West Coast Houston Virginia New York/New Jersey San Pedro Bay Ports 41% 11% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Port Cargo Growth (2006-2018) Selected Gateways (Based on Total Container Volumes, Loaded Imports, Loaded Exports, and Empties) Source: American Association of Port Authorities (AAPA), NAFTA Port Container Traffic Data Official Port Website 14 14 2019 ANNUAL REPORT