Recent statistics by PIERS, a sister product of the Journal of Commerce within S&P Global, revealed that ports in the southeast of the US are increasingly attracting imports from Asian origins. The Port of Savannah has particularly been growing its Asian volumes amidst the ongoing cargo diversion from the West Coast to the East Coast.
Nearly 21% of the total Asian import volumes arrived in the US through the Southeast coast ports of Savannah, Norfolk, Charleston, Wilmington, Jacksonville, Everglades, and Miami. The biggest share, however, was handled by the Port of Savannah, where volumes surged by 6% last year. In addition, the Port of Charleston increased its share last year to 3.8% from 3.3%, according to JOC.
According to Byron Miller, chief commercial officer at the South Carolina Ports Authority (SC Ports), the majority of the cargo arriving in Savannah consists of “e-commerce goods and consumer purchases of retail goods, home office and exercise equipment, outdoor furniture, and home improvement supplies,” reports JOC.
Avoiding unexpected labour-related disruption on the West Coast is not the only reason for the cargo diversion. According to Miller, the area is witnessing a growth in population and supply chain infrastructure that facilitates the movement of goods.
“Customers are currently moving more than 500 containers per month to Dallas, an increase of nearly 32 per cent over the previous fiscal year to date,” Miller told JOC. “Intermodal containers move from vessel to departing rail in less than two days in Savannah, while shorter overland routes mean fewer opportunities for rail delays to important inland markets.”
In terms of exports, the Port of Savannah increased its loaded container volumes by 21% in January despite the decline in global demand. Ongoing development projects at the facility are expected to increase the port’s capacity to ensure further growth.