US ports say they have plenty of space for containers during the Covid-19 pandemic, despite media reports suggesting that boxes are stacking up dockside due to supply-chain disruptions.
Amazon and other parcel giants have limited deliveries to essential items only as China slowly resumes production, but the shift is not causing any container backlog, port officials say.
The Port of Los Angeles — the largest container port in the US — actually saw March volumes fall 31% from a year ago to 449,568 teu as a result of the virus, executive director Gene Seroka said.
"It was the lowest amount of monthly cargo moving through the port since February 2009," he told TradeWinds.
“We’ve had two serious shocks to our supply chain system. First, the trade war between the US and China, and now the Covid-19 pandemic.
“With US retailers and cargo owners scaling back orders, volumes are soft even though factories in China are beginning to produce more. Amid this public health crisis, there will be uncertain months ahead in the global supply chain.”
He said containers could back up at the port but this potential is being closely watched through drones and a Port Optimizer digital platform.
"We're watching this every day," he said.
Sources close to the Port Authority of New York and New Jersey have said two boxship operators have asked for more on-dock storage space, but the company would not confirm this.
“Whether a terminal operator, ocean carrier or shipper is in need of additional space, we will work with them to help identify available options in the region," deputy director of the port department Bethann Rooney told TradeWinds.
The South Carolina Port Authority (SC Ports) has "ample capacity" at its marine terminals and inland ports, and is set to get even more room, chief executive Jim Newsome said.
"SC Ports offers creative solutions for ocean carriers and customers who are facing challenges for storage, ensuring their needs are met and the supply chain remains fluid,” he told TradeWinds.
SC Ports oversees 2.9m teu of capacity at the Port of Charleston, Inland Port Greer and Inland Port Dillon.
Port of Charleston set for huge expansion
Newsome said that space will almost double to 5.3m teu with the March 2021 launch of a $1bn Hugh K Leatherman Terminal at the Port of Charleston.
The Port of Oakland can expand its 2.5m-teu capacity by another 1.5m teu, but officials say terminal operators are not asking for more space.
In fact, box volumes at the port are down slightly from last year, according to spokesman Mike Zampa.
"We're fluid and cargo is moving," he told TradeWinds. "Right now, that is not an issue."
The port, which saw teu volumes slip to 2.5m in 2019 from 2.55m in 2018, is used by about 15 boxship owners, including major liner operators Maersk, CMA CGM, OOCL and Hamburg Sud.
The Northwest Seaport Alliance, which includes the State of Washington ports of Seattle and Tacoma, has not yet been asked for more storage space, spokesman Peter McGraw said.
However, it is working with supply-chain partners to ensure availability as production in China ramps up after a slow first quarter.
"These include off-dock container yard and connections to off-dock warehouse and distribution centres," he said.
"All cargo continues to flow through The Northwest Seaport Alliance gateway."
