Read also: C.H. Robinson: How Shippers can prepare for a Potential ILA Strike Amid an Increasingly Disrupted North American Shipping Landscape 

Port Strike Impacts on Specific Industries: Pharmaceutical and Healthcare

1. The looming U.S. port strikes put most categories of goods at risk as east and gulf coast ports process nearly half of the country’s cargo. General retail goods may be the only category not as affected by a short or medium-term strike action, as many importers anticipated that the strike would move forward, and moved up the typical seasonal peak shipping season from September to August to stock inventories for holiday spending upticks.

2. Most companies have about 3-4 weeks’ worth of inventory, risking a disruption to supply should the impacts of the strike continue beyond that time frame.

3. In addition to the automotive and agri-food industries, the pharmaceutical and healthcare sector which relies on a time-sensitive supply chain may see the biggest impacts and potential material shortages that could disrupt production or patient safety. 

• The affected ports handle more than 91% of containerized imports and 69% of containerized exports of U.S. pharmaceutical products.
• Over 1 in 3 containers departing the U.S. with lifesaving medications leaves from the Port of Norfolk, VA.
• Nearly 30% of containerized pharmaceutical imports in the U.S. enter through the Port of Charleston, SC.
• If port strikes occur, this will lead to a spike in airfreight activity for time-sensitive supply chains such as pharmaceutical and could lead to capacity shortages for lower-value goods.

And below is some additional insight from Jena Santoro, Senior Manager of Intelligence Solutions at Everstream Analytics.

How long would a port strike take to impact the prices of goods? 

“Some estimates say that a coordinated port strike would take roughly four weeks to reach consumer level as many companies have adequate inventories to support orders in the interim. As peak holiday shipping season occurred early this year – in part due to anticipated disruptions from this strike action – most retail goods have already been imported to fulfill those orders and stockpiles are high. For other categories of goods, a strike duration beyond one month or so could be devastating. Some manufacturers could run short of parts, notably in the auto and pharmaceutical industries, which generally don’t stock large parts inventories. Each strike day could lead to a 4-6-day backlog in cargo processing which could end up causing shortages in deliveries and inventory even beyond the actual duration of the strike action.”

 Are stores already hiking prices in anticipation? Are there any particular goods that could be impacted? 

“Based on our intelligence, there haven’t been any reports of price hikes at the retail level in anticipation of the strikes. However, a variety of goods are expected to see impacts in the event of strike action, even if it ends up being a partial strike like a work-to-rule order. This includes fruit imports like bananas given the significance of the Port of Wilmington, Delaware for companies like Dole Fresh Fruit Company and Chiquita Fresh North America and meat exports as 45% of waterborne US pork exports and 30% of US beef exports are shipped via East and Gulf Coast ports. As the affected ports handle about half of the nation’s cargo shipments, disruptions would extend to most categories of goods, including automotive and electronics shipments, other perishables like medicine and pharmaceuticals, and general retail goods.”

As part of the current government and Democratic nominee, could the strikes spell any election trouble for Kamala Harris?

“Harris has not made public her intentions for intervention in case of a prolonged strike action should she be elected. President Biden has made clear that his administration would not intervene but instead would encourage continued dialogue and negotiation between the affected parties. It is currently unclear if Kamala Harris has that same stance, and without knowing her position, it is difficult to discern any potential implications to her election.”

The post Port Strike Impacts on Backlogs and Delays appeared first on Global Trade Magazine.

Read also: C.H. Robinson: How Shippers can prepare for a Potential ILA Strike Amid an Increasingly Disrupted North American Shipping Landscape 

What’s at Stake?

If the strike begins on October 1, it’s estimated that the resulting supply chain disruptions could cost the U.S. economy over $1 billion per day. 

Essential goods, including imported retail items, automotive parts, and perishables could be stranded at ports or rerouted at considerable expense. Oxford Economics warns that a prolonged strike could impact up to 100,000 jobs, exacerbating the pressure on businesses already grappling with inflation and the aftermath of previous supply chain crises.

The East Coast ports are critical gateways for a range of industries. Retailers are rushing to secure holiday inventory as the strike coincides with peak shopping season preparations. Companies have been importing early, shifting cargo to the West Coast, and even opting for costly air freight to avoid potential delays.

Commenting on the broader implications of the strike for containerized trade, Christian Roeloffs, cofounder and CEO of Container xChange, said, “The strike could push the container trade into chaos, with ripple effects that potentially will disrupt supply chains well. The congestion and delays at these major ports will severely impact the availability of containers, increase costs, and disrupt schedules. Small traders, in particular, may feel the squeeze as they are more vulnerable to price surges and extended delays in securing and moving their boxes. Businesses are acting now to reroute shipments and secure their container supply, or they risk being left stranded in a congested and costly aftermath.”

The fallout from a strike would hit industries like retail, automotive, and manufacturing hardest. Retailers, for example, are already rushing to import goods ahead of the holiday season. Without contingency plans, many companies will face severe shortages, missed deadlines, and skyrocketing logistics costs. Roeloffs further emphasizes the risk to small traders:

“For small traders, the consequences could be devastating—skyrocketing costs, container shortages, and delays that might cripple business operations.” Roeloffs added. 

Immediate Supply Chain Challenges 

1. Stranded Cargo: With 42 container ships scheduled to arrive at the Port of New York and New Jersey alone in the coming days, any work stoppage could leave cargo stranded in transit. Shipping lines such as Ocean Network Express (ONE) are already advising customers to pick up their containers by September 30 and avoid leaving perishable or hazardous materials at the terminals.

2. Rerouting Challenges: Redirecting shipments to West Coast ports or alternate East Coast ports could create a logistical bottleneck, especially for goods requiring passage through the Panama Canal. 

3. Cost Escalations: Maersk has already announced a disruption surcharge for all cargo moving to and from U.S. East and Gulf Coast terminals, starting on October 21. The surcharge will be $1,500 per twenty-foot equivalent unit (TEU) and $3,000 per forty-foot equivalent unit (FEU), depending on the extent of the supply chain disruption.

Hapag-Lloyd plans to implement a “Work Interruption Destination Surcharge” for imports from East Asia on October 19, and a “Work Disruption Surcharge” for cargo from the rest of the world on October 18, both at $1,000 per TEU. CMA CGM will introduce an export surcharge on October 11, set at $800 per TEU and $1,000 per FEU, with a $1,500 per TEU import surcharge. Additionally, starting November 1, they will apply a $1,000 peak season surcharge for imports from the Indian Subcontinent and the Middle East, delayed from the original October 1 date.

Ocean Network Express (ONE) has yet to finalize its surcharge strategy but has cautioned customers about possible booking changes, including vessel rollovers or cancellations, beginning this week.

These additional costs are likely to be passed on to consumers, impacting a wide range of goods from holiday products to industrial supplies.

Even if the strike is short-lived, the backlog of cargo will lead to delays as ports struggle to clear stranded containers. 

Sector-Specific Impacts 

The retail sector, particularly those dependent on imports from Europe and Asia, will bear the brunt of the delays. Critical holiday merchandise, including apparel, electronics, and seasonal goods, may not arrive on time. 

“The automotive industry, which relies heavily on timely shipments of parts and components, could see production delays, especially for vehicles assembled in the U.S. with parts arriving through East Coast ports. “Each day of the strike could mean five days of delays for businesses already struggling with tight margins and timelines. For many, this could be the breaking point,” says Roeloffs, emphasizing the logistical strain.

Roeloffs notes, “The cost of shipping will skyrocket, and ultimately, it’s the consumer who will bear the brunt—whether they’re buying holiday gifts or essential auto parts.”

Strategic Recommendations for Supply Chain participants

To mitigate the impact of the potential strike, supply chain managers must adopt proactive strategies:

1. Reroute Shipments: Where possible, divert cargo to alternative ports on the West Coast or Gulf Coast. Although this may require additional transit time through the Panama Canal or air freight options, it’s essential to explore all available alternatives to avoid delays at East Coast ports.

2. Prioritize High-Value and Critical Goods: For industries like automotive and retail, it’s crucial to prioritize high-value, high-demand products that cannot afford delays. Companies like Designer Brands have already shifted some of their shipments to air freight despite the higher costs. Roeloffs advises:

3. Expedite Customs and Clearance: Businesses should work closely with freight forwarders and customs agents to expedite the processing of goods already en route. Shipping lines like Maersk and ONE have encouraged customers to expedite their imports to avoid potential shutdowns.

4. Leverage Additional Gate Hours: Ports such as New York and New Jersey are extending their gate hours ahead of the strike deadline. Utilizing these extra hours to clear inbound shipments will help companies avoid the backlog that is expected if the strike occurs. Terminal operators APM Terminals, Maher and Port Newark Container Terminal will have extended gate hours.

5. Diversify Suppliers and Logistics Providers: To build resilience against disruptions, companies should consider diversifying their supplier base and logistics networks. Relying on a single port or carrier leaves businesses vulnerable to localized disruptions like strikes.

The Bigger Picture: Long-Term Consequences 

While immediate actions can help alleviate short-term disruption, the long-term effects of a strike could extend well into 2025. With major global carriers already preparing to impose surcharges on shipments to and from the U.S. East Coast, cost pressures will increase across the board.

“It’s not just about getting containers out of the port—it’s about keeping trade moving in an increasingly fragile supply chain,” says Roeloffs, emphasizing the broader implications of the strike.

The post U.S. East Coast Strikes appeared first on Global Trade Magazine.

Read also: Global Trade Magazine Calls for Nominations for Annual Women in Logistics Feature

Starting today, voting is officially open, and Global Trade Magazine invites businesses, logistics professionals, and port users to cast their votes for the ports they believe exemplify excellence in service, sustainability, customer satisfaction, and operational performance.

How to Participate: Voting is easy! Simply click here to select your favorite U.S. ports.

Voting Deadline

Make sure to submit your vote before November 1, 2024, at 5 PM CST. The winners will be featured in Global Trade Magazine’s December issue, with special recognition given to the ports that receive the highest accolades from industry leaders.
“We’re excited to launch this new tradition in the trade and logistics sector. America’s ports are essential to the success of global commerce, and this awards program gives professionals the chance to shine a spotlight on those ports that have made a real difference in the industry,” said Matt Coker, Editor-in-Chief of Global Trade Magazine.

About Global Trade Magazine

As the premier publication for executives involved in international trade and logistics, Global Trade Magazine delivers critical insights on supply chain strategies, port developments, and market trends. Our goal is to keep decision-makers informed and help them stay ahead in the competitive world of global trade.

For more information about the 1st Annual America’s Favorite Port Awards, contact Associate Publisher, Clive Bullard at cbullard@cs.com, (845)309-0892 or click here to submit your vote today.

The post Global Trade Magazine Launches 1st Annual America’s Favorite Port Awards: Voting Now Open! appeared first on Global Trade Magazine.

Read also: Maersk Settles Whistleblower Retaliation Case with U.S. Department of Labor

The ILA has already submitted the required notifications to government agencies and negotiating parties, signaling the possibility of a strike if a new agreement is not reached. However, due to a ‘no strike’ clause in place until the contract expires, no job actions are anticipated before October 1. It’s important to note that these notifications do not guarantee that a strike will occur.

Maersk remains optimistic that both parties are committed to reaching a deal that will keep supply chains robust and efficient. Despite a history of successful negotiations, the potential for a strike looms as long as a new contract remains unsettled.

“Disruptions could be localized or widespread. In the event of a general work stoppage on the U.S. Gulf and East Coasts, even a one-week shutdown could take 4-6 weeks to recover from, with significant backlogs and delays worsening with each passing day,” the Maersk update cautioned.

In case of disruptions, Maersk is prepared to help customers find alternative routes, transportation methods, or distribution schedules to ensure the continuity of their supply chains. Customers are encouraged to maintain close communication with their Maersk representatives to discuss supply chain needs and develop customized contingency plans if necessary.

The post Maersk Alerts Shippers to Potential Supply Chain Challenges Amid U.S. Labor Negotiations appeared first on Global Trade Magazine.

Over twenty years ago, California legislators embarked on energy deregulation. Implemented haphazardly, what followed were mandated price caps, rolling blackouts, and the eventual 2003 recall of then-Governor Gray Davis. Fast-forward to the present and the state still struggles with a stable and reliable electrical grid.

LADWP attributes the outages this year to bad weather, vehicles and birds hitting the power poles and lines, and equipment failure. A glaring weakness of the port is that it is served by overhead power lines that the elements can easily compromise. The previously mentioned upgrades include new underground power lines. 

Down the road at the Port of Long Beach, terminal operators report fewer issues. Still in California, Long Beach receives its power through Southern California Edison, leading some to question whether these failures are also the result of poor management on the part of LADWP. Long Beach is a heavily automated port that runs nearly entirely on electricity and employs backup battery systems when needed. 

Power interruptions cause ship-to-shore cranes to reset, ceasing cargo flow to the terminals. Compromised automated gates also interrupt the acceptance and delivery of goods to trucks. Recalibrating the machinery takes time, as does replacing fried circuit cards, and time off the grid is costly.  

The outages are sparking a larger discussion about what the future holds after the state mandate kicks in to phase out diesel-powered machinery by 2030. An all-electric environment with an unreliable grid would spell disaster in the current climate. The shift to zero-emission technologies in California is well underway. For example, the US Environmental Protection Agency released a “mandate” under a different name that will push truck manufacturers to sell additional battery-electric trucks by 2030. It remains to be seen if the infrastructure and providers can keep pace. For the moment, they haven’t. 

The post California Power Outages Wreaking Havoc on the Port of Los Angeles   appeared first on Global Trade Magazine.

Read also: May 2024 U.S. Containerized Imports Break 2.3M TEUs

This is important beyond port terminals because they are major economic hubs, handling a massive amount of cargo coming in and out, feeding the country’s consumer goods and industrial needs. Efficient operations ensure a smooth flow of goods, which keeps businesses running and shelves stocked. Delays at ports can disrupt supply chains and lead to price hikes for consumers.

Efficient port operations are also important beyond U.S. borders as the nation competes with other countries for international trade. Ports with fast turnaround times make the U.S. a more attractive destination for shippers. This translates to more revenue and jobs in the U.S. economy.

When it comes to gauging the top U.S. ports in the container sector, we must look at total twenty-foot equivalent units (TEUs) handled. Based on the size of a standard 20-foot long shipping container, a TEU is the standard unit used to measure the capacity of vessels and terminals. One 20-foot container is equal to one TEU and large 40-foot containers are counted as two TEUs.

Do you know who uses TEUs to determine the busiest container ports in the U.S.? None other than the U.S. Department of Transportation, whose 2024 Port Performance Freight Statistics Program Annual Report to Congress includes a list of the Top 25 Container Ports ranked by TEU. That list follows with Global Trade’s own analysis of why each port made the cut.

1. PORT OF LOS ANGELES, CA 

The busiest container port in the U.S. processes a massive amount of containers, moving more than 9 million TEUs annually. The operation is divided among seven major container terminals, each equipped to handle the loading and unloading of container ships. The Cargo Operations Dashboard web portal provides real-time data on various aspects of cargo movement, such as truck activity at terminals and vessel locations. For moving containers inland, the port connects to a vast rail network with six intermodal rail yards, a key route being the Alameda Corridor, a 20-mile express railway that zips containers directly to rail hubs in downtown L.A.

2. PORT OF LONG BEACH, CA

L.A.’s sister container cargo powerhouse also handles millions of TEUs annually. Unlike some ports that directly manage cargo movement, Long Beach operates as a “landlord port,” with private terminal operators performing the day-to-day operations of loading and unloading container ships at various terminals. The port caters to a diverse range of containerized cargo, with terminals specializing in different goods. This allows them to handle a wider range of imports and exports efficiently. The POLB is at the forefront of adopting sustainable practices, having implemented zero-emission cargo handling equipment like electric yard tractors, reducing dependence on fossil fuels.

3. PORT OF NEW YORK AND NEW JERSEY, NY & NJ

The largest containerized cargo port on the East Coast boasts a vast operation spread across six terminals and public berths, equipped to handle the world’s biggest container vessels. Like other major ports, NY/NJ prioritizes efficient cargo movement. Third-party logistics providers (3PLs) play a crucial role, offering services like consolidation (combining smaller shipments into full containers) and deconsolidation (separating a full container into individual shipments) to streamline the import and export process. The Port Authority of New York and New Jersey participates in the World Port Sustainability Program, demonstrating a commitment to environmentally conscious practices alongside the cargo handling operations.

4. PORT OF SAVANNAH, GA

Savannah boasts the largest single-terminal container facility in North America, covering over 1,300 acres and equipped to move millions of tons of containerized cargo annually. The port is well-equipped with 42 container cranes (with a target of 42 by 2028) and more than150 rubber-tired gantry cranes to handle the loading and unloading of containers swiftly. Savannah offers direct access to major highways (I-95 and I-16) and on-terminal rail facilities ensure seamless cargo movement. As the most westerly port on the Atlantic seaboard, Savannah offers shorter transit times for cargo destined for major inland markets in the southeastern United States. 

5. PORT OF VIRGINIA, VA 

Another major force in containerized cargo handling on the East Coast, Virginia has seen significant growth in recent years, with a focus on expansion and efficiency. They recently completed a $750 million expansion project that increased cargo capacity by 46 percent. Thanks to its deepwater channels and ongoing dredging projects, the port can accommodate the largest container vessels currently operating. The port utilizes semi-automated container terminals with advanced cranes to expedite cargo handling. Norfolk International Terminals is the largest terminal and will boast more than 90 semi-automated cranes upon completion of its expansion. The port offers excellent multimodal connections.

6. PORT HOUSTON, TX

The port boasts two state-of-the-art container terminals: the Bayport Container Terminal and the Barbours Cut Container Terminal. These facilities are equipped to handle the modern giants of container shipping efficiently. Port Houston is investing $750 million over five years (through 2027) to upgrade the Bayport Container Terminal’s infrastructure and capabilities—a commitment to handling more containers and larger vessels in the future. Houston’s extensive highway network and role as a major trucking hub in the U.S. contribute to the efficient movement of containers inland after they are offloaded from ships. The port also offers on-site rail connections for seamless cargo movement.

 7. PORT OF CHARLESTON, SC 

Charleston has seen significant growth in recent years, becoming the fastest-growing container port in the U.S. Major investments are being made to handle the largest container vessels. The Charleston Harbor deepening project, completed in 2021, allows the port to accommodate all post-Panamax ships (the biggest ones!) 24/7, boosting its competitiveness. The port’s container operations are spread across several terminals, including the North Charleston Terminal, the Wando Welch Terminal and the recently opened Hugh Leatherman Terminal. The South Carolina Ports Authority offers various tools like GO!Port, a system for tracking and tracing container cargo, providing real-time data and enhancing supply-chain visibility. 

8. PORT OF OAKLAND, CA 

Oakland has seen steady growth in container traffic, with a particular surge in imports in recent years. Terminals are equipped to handle this increasing volume efficiently. The port has strategically invested in infrastructure to accommodate the giants of the sea. Oakland routinely receives calls from ships with capacity for 14,000 containers and can handle even larger vessels with the necessary adjustments. Oakland prioritizes swift cargo movement. They boast some of the highest ship-to-shore crane productivity rates on the West Coast, meaning they can load and unload containers quickly.

9. PORT OF TACOMA, WA 

Among the largest deepwater ports in America, Tacoma is situated on Commencement Bay in Puget Sound, making it geographically well-positioned. The port serves as a vital gateway for cargo moving between Asia and the eastern U.S., with more than 70% of its international cargo directed toward these regions. Additionally, Tacoma handles around 80% of the marine cargo between Alaska and the Lower 48 States. Various sustainability programs are in place to reduce emissions from port operations and promote environmentally responsible cargo handling practices.

10. PORT OF SEATTLE, WA

The Port of Tacoma and Port of Seattle are managed by the Northwest Seaport Alliance, a collaboration that strengthens their overall container handling capabilities. The Port of Seattle handles millions of TEUs annually across several terminals. Efficiency is a priority there, with trucks and on-site rail connections ensuring swift movement inland. Sustainability efforts are also in place to balance economic activity with environmental responsibility.

11. PORT OF JACKSONVILLE, FL

JAXPORT, as the port’s authority and the port itself are known, ranks first among Florida’s ports for containers. The Dames Point Terminal efficiently handles millions of TEUs with connections to major highways and on-dock rail for seamless cargo movement throughout the U.S. Southeast.

12. PORTMIAMI, FL 

Known mostly for cruise ships, PortMiami handles containers, too. Cargo moves efficiently through its container terminal with connections to highways and rail for regional distribution.

13. PORT OF SAN JUAN, PR

Puerto Rico’s main port prioritizes container cargo. Three major shipping lines call there, utilizing a “carousel” crane system to efficiently load and unload containers destined for or arriving from the U.S. mainland. 

14. HONOLULU HARBOR, HI

The O’ahu facilities not only handle container cargo, they recently expanded their container terminal capacity by 40% to handle increasing volumes and improve efficiency for island trade.

15. PORT OF BALTIMORE, MD

Baltimore boasts the No. 1 container terminal on the East Coast (Seagirt Marine Terminal) with super-post-Panamax cranes and swift container handling. They handle millions of TEUs annually.

16. PORT EVERGLADES, FL

The port has a reputation for efficiently moving millions of TEUs with quick ship turnaround and connections to highways and rail.

17. PORT OF PHILADELPHIA, PA

PhilaPort’s Packer Avenue Marine Terminal is the main hub for container cargo, with rail and highway connections for efficient inland transport.

18. PORT OF MOBILE, AL

Mobile boasts fast ship turnaround with 35 container lifts per hour and 45-minute truck wait times.

19. PORT OF ALASKA, AK

Alaska’s main cargo handler in Anchorage sees twice-weekly container ships delivering essential goods for most of the state.

20. PORT OF NEW ORLEANS, LA

New Orleans’ Napoleon Avenue Terminal handles more than 600,000 TEUs annually with cranes for mega-ships up to 10,000 TEUs.

21. PORT OF WILMINGTON, NC

The North Carolina port efficiently handles containers with seven cranes, including neo-Panamax models for large ships, offering easy access to highways for distribution.

22. PORT OF WILMINGTON, DE

The Delaware port boasts a 500,000 TEU annual capacity with four gantry cranes and efficient rail connections for onward transport.

23. PORT OF PALM BEACH DISTRICT, FL

Florida’s fourth busiest container port handles more than 290,000 TEUs with 24/7 on-dock rail for smooth container movement.

24. SOUTH JERSEY PORT CORPORATION, NJ

The operator of marine shipping terminals in seven New Jersey counties focuses mostly on breakbulk and bulk cargo, but it does have cranes for containers.

25. PORT OF BOSTON, MA

Boston’s Paul W. Conley Terminal specializes in container cargo, with gantry cranes and automated stacking cranes for efficient loading and unloading.

The post Top 25 Container Ports In The United States appeared first on Global Trade Magazine.

Read also: Port of Lake Charles Surges into Top 10 US Ports for Cargo Handling

Before the pandemic, port officials rushed to dredge deeper channels to accommodate new mega-ships. At the same time, ports were also dealing with aging infrastructure and a critical need for upgraded infrastructure, which would allow for handling higher volumes of cargo. Over the last decade, the size of the mega ships arriving at America’s ports has more than doubled. 

Projects to deepen port channels are underway or have recently been completed because of the need to service Panamax ships—those that are too large to fit through the Panama Canal. The U.S. Army Corps of Engineers did most of the dredging work, but the expanded waterside capacity has created an immediate need for landside infrastructure upgrades. Demand is high for everything from equipment, technology, cranes, transport vehicles, roads, railways, bridges and the construction of warehouse facilities.

Fortunately, funding is available for upgrading the nation’s port infrastructure. The Bipartisan Infrastructure Law provided a long-term $17 billion allocation to support upgrading and expanding port infrastructure. The U.S. Department of Transportation announced last November another $653 million in funding for port projects. Most initiatives will be supported by consolidating federal funding with other revenue sources.

Read also: AMERICA’S TOP 50 POWER PORTS

The traditional type of port operations has evolved, and there is evidence of impressive innovation at many ports. According to officials, artificial intelligence (AI) will play a significant role as ports maximize operational efficiency to speed up the flow of cargo and reduce wait times for vessels. Since two-thirds of the available wind power is located over deep ocean waters, ports are also beginning to play a key role in deploying and maintaining floating offshore wind energy apparatuses. 

Officials at the Port of Long Beach in California will oversee a project to expand the capacity of roads and bridges that are used to move cargo. This will allow rail and truck traffic to accommodate projected increases in cargo throughput and alleviate existing congestion. There are two components of the project. The first involves widening a rail bridge and enhancing its safety by realigning it. The second component calls for upgrades to multiple roadways that must be widened, realigned and improved. Additionally, work will be done on the area’s storm drainage, warehouse facilities and utilities. 

In Washington, the Tacoma Husky Terminal will receive $54.23 million in federal funding to reconfigure the terminal for better truck circulation. The total project cost is estimated at $125.9 million. Currently in the design phase, the project is scheduled for construction in January 2025. The project will be designed to cover three objectives. First, a plan will be developed to reconfigure the container storage yard. That effort will include relocating utilities, light poles, slot drains and fire hydrants. The second objective will require the installation of reefer racks and additional power. A reefer rack is a storage container designed to store perishable cargo at freezing indoor temperatures. New utilities and fire protection systems will be added. The third objective will be to relocate some of the port’s support facilities and construct new ones. 

The Port of Wilmington in Delaware has secured a federal grant of $50 million to construct a container terminal. The terminal has been planned for several years, but recent funding has created new momentum. The container terminal is one component of a larger overall plan to update and expand the Port of Wilmington. Port officials currently have $120 million to work with, and planning documents outline initiatives representing project costs of up to $750 million. Other project plans include constructing a 2,600-foot-long wharf, dredging 3.3 million cubic yards of river sediments, excavating a berth and access channel and adding bulkheading to 3,200 feet of shoreline. 

Hawaii’s Department of Transportation announced it will invest $33.9 million to improve operational efficiency at the Port of Kawaihae. A funding allocation from the U.S. Department of Transportation Maritime Administration will cover approximately 70% of the project’s total cost. The initiative will include widening Kawaihae Road, adding concrete paving over 10 acres of the port’s cargo yard, implementing 80-foot mast lighting, installing raised transformer pads for additional electrical power pads, and relocating the port office building and maintenance shed. The remainder of the project cost not covered by the PIPD grant will be obtained through revenues received from harbor user fees. Construction is scheduled for 2025.

The Galveston Wharves received an award of $42.3 million from the Texas Department of Transportation for a proposed $50.1 million project at the West Port Cargo Complex. The project entails overhauling a 1,340-foot-long berth across two open slips and adding about 500 feet of berthing area for cargo and lay ships. Construction is expected to begin this year. Noteworthy is the fact that the Texas legislature made history in the last regular session by allocating $640 million for infrastructure projects throughout the state.

In Arkansas, a project with an estimated $18.8 projected cost is being designed for the River Valley Slackwater Harbor. When completed, the new harbor will accommodate up to eight barges at a time and feature a 50-foot-wide concrete deck for mobile cranes. Officials have expressed a desire to finalize a contract for construction services within six months so that work can begin by late 2024. 

Numerous port projects of all types are anticipated in 2024 and 2025. Most will include technology, light rail, renewable energy components, engineering and construction services. 

Author Bio

Mary Scott Nabers is president/CEO of Strategic Partnerships, Inc., a full-service business development firm specializing in procurement consulting, government affairs, research, and public-private partnerships. She founded SPI after co-founding Gemini Global Group and, before that, serving as a statewide office holder in Texas.

The post America’s Ports Surge Ahead: $5 Trillion In Funding Is Earmarked For Groundbreaking Infrastructure Overhaul appeared first on Global Trade Magazine.

Reada also: AFA Sponsors New Bill To Reduce Airport Truck Congestion

Airports have long benefited from federal funding support for normal operations. Still, now, with an abundance of funding for capital improvement projects, airports will be busy with improvement projects of all types. More than $300 million was recently awarded to support projects throughout the U.S. Examples of upcoming projects planned for 2024 launches follow.

The Salt Lake City International Airport will be expanded as part of an Airport Redevelopment Program. While phase I is complete and phases II and III are underway, a massive phase IV is still waiting to launch. Projects with a cumulative cost projection of $683 million are still in the design phase. The Federal Aviation Administration has provided another $29 million to support this last development phase. One construction project will add a 300,000-square-foot concourse expansion. The new construction will include upgrades for all three levels of the concourse. The ground floor will have additional space for airport operations, storage and support services. The second level will be devoted primarily to passenger circulation and amenities. A total of 16 new gates and an additional 40,000 square feet of food and retail space will be added. Level 3 will provide dedicated public space, an outdoor deck for relaxation, and large electrical and telecommunications rooms. Also included will be utility upgrades, paving and repair work, and limited demolition services.

City officials are discussing plans to upgrade and expand Area 4 of the Barbara Jordan terminal at the Austin Bergstrom International Airport in Texas. The estimated cost for the planned expansions falls somewhere between $200 million and $375 million. The project is still in its planning phase and a solicitation for the required design work is scheduled for this year. Construction solicitations will follow as soon as the design is finalized. This effort will include reconfiguring and modernizing the terminal and redesigning the area where planes park to receive passengers and baggage. There will not be an increase in the number of gates, but ADA accessibility and security will be upgraded. A $14 million grant from the Federal Aviation Administration will be consolidated with other funding.

Officials at the St. Louis Lambert International Airport in Missouri will partner with airlines to fund a $331.6 million upgrading initiative. The projects that will be launched are part of a larger master plan that outlines approximately $3 billion in improvements. A new central utility plan is needed, and the design phase for that effort will begin this year. Upgrades are also planned for the airport’s mechanical and electrical systems, water main pumps, air conditioning and power distribution systems. The design and construction of the utility plant has been tagged with a cost estimate of $175 million. Another project being designed currently will relocate the airfield’s maintenance campus. The current campus is in a flood-prone area and cannot be used to store modern airfield equipment. Relocating the campus will cost $85 million. The design of a new de-icing pad will start mid-2024 and that effort currently has a cost projection of $53.2 million. 

The air traffic control tower at Tulsa International Airport in Oklahoma is nearing the end of its useful life, and a replacement project is planned. A new control tower and terminal radar approach control facility will be constructed at approximately $102 million. The project received funding for the design phase and is slated for this year. The new facility will meet current design and code standards, eliminate line-of-sight issues, provide space to accommodate all needed personnel in one place, and update all communication equipment. 

Officials at the Presque Isle International Airport in Maine will oversee a project to replace the passenger terminal. The planned $30 million construction project will deliver a 22,000-square-foot, two-story structure. A construction solicitation was slated for release early this year, and construction is scheduled to begin in June. The security and bag checking areas will be expanded and a new fire alarm system will be installed. The current terminal lacks a fire FAA-compliant system, which will be addressed. Other upgrades will include constructing a new airport ramp, expanding the rental car space, and installing universal electric vehicle chargers. There are also plans to relocate the airport’s museum to the new building. 

The Kahului Airport on the Hawaiian island of Maui received a $22 million grant from the Federal Aviation Administration that will be used to support a $62.3 million TSA security checkpoint project. A construction solicitation for the work was set for release near the end of last year. The new south checkpoint waiting lobby, screening lanes and TSA support spaces will be moved to the second floor of the new screening facility. The ground level will be designed to provide office spaces and tenant retail. A pedestrian bridge will connect the south checkpoint to a passenger hold room. This effort will significantly benefit the Kahului Airport, the second busiest airport in Hawaii. 

Airport upgrade activities in 2024 will be significant and demand for experienced contractors will be high. Airline travel is not only getting back to normal, but it is projected to represent significant increases.

Author Bio

Mary Scott Nabers is president/CEO of Strategic Partnerships, Inc., a full-service business development firm specializing in procurement consulting, government affairs, research, and public-private partnerships. She founded SPI after co-founding Gemini Global Group and, before that, serving as a statewide office holder in Texas.

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Last week, President Joe Biden signed the Federal Aviation Administration (FAA) Reauthorization Act, which earmarks $105 billion over four years to enhance air traffic control, airport operations, and infrastructure. This initiative aims to address constraints that have hindered traffic development, bolster system safety, and better prepare for future disruptions while accommodating growth.

Related Article: AFA Sponsors New Bill To Reduce Airport Truck Congestion

The package includes $19.35 billion for airport infrastructure improvement grants, with a portion dedicated to enhancing airfreight capabilities. “This is a major step forward in addressing the cargo congestion problem that has existed for quite some time at many airports across the country,” said Bob Imbriani, President of the Airforwarders Association (AfA).

During the pandemic, freight forwarders often faced long wait times at airports, sometimes up to seven hours. Despite normalized volumes, reports indicate that wait times still average around 2.5 hours. “This legislation is music to our ears,” said Brandon Fried, the AfA’s Executive Director.

In previous funding rounds, airlines received $25 billion of the $115 billion they requested from Washington, with no mention of cargo. Recognizing the need for dedicated advocacy, the AfA and the National Customs Brokers and Forwarders Association of America (NCBFAA) surveyed over 400 stakeholders in the air cargo sector, producing a 65-page white paper that successfully garnered Congressional support.

The legislation mandates the General Accountability Office to conduct a comprehensive assessment of U.S. air cargo operations over the next year. Although the exact allocation for air cargo improvements is not yet clear, estimates suggest $4 billion to $6 billion may be required, according to airport consultants involved in the project. Challenges vary by airport, including outdated road systems, labor issues, and antiquated technology.

A key objective of the legislation is to alleviate the overburdened air traffic control system. Last summer, IATA noted that U.S. airlines had to reduce schedules by 10% due to a shortage of traffic controllers. Airlines for America reported in January that the number of controllers was 3,000 short of FAA targets, 10% lower than in 2012.

Recruiting more traffic controllers could lift flight restrictions at airports like Washington National and improve aviation safety—a growing concern following recent incidents and near-misses, as well as quality issues at Boeing. The legislation also calls for advanced airport surface technology to prevent collisions.

Additionally, the legislation permits Boeing to extend production of its B767 freighter for another five years, potentially increasing demand for the aircraft in the near future.

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Red also: Louis Region Poised To Join One Of The World’s Most Comprehensive Port Networks

Released on May 15 during the annual Freight Summit at FreightWeekSTL 2024, the Priority Projects List is curated by the Freight Development Committee of the St. Louis Regional Freightway. This committee includes representatives from the Illinois and Missouri Departments of Transportation (IDOT and MoDOT), the East-West Gateway Council of Governments, various transportation modes, the manufacturing and logistics sectors, and academia.     

Among the completed projects are the $222 million replacement of the Merchants Bridge and the $278 million improvement of Interstate 270 from James S. McDonnell Boulevard to Bellefontaine Road. These projects were among the highest priorities since 2016.

Kirk Brown, Region Five Engineer for IDOT, highlighted key projects such as the $496 million Chain of Rocks Bridge and improvements to Illinois Route 3. Tom Evers, Assistant District Engineer for MoDOT, discussed the recently completed I-270 North Project and upcoming projects including the I-70 improvements between Wentzville and Warrenton, slated to start in early 2025.

The largest project on the list is the new terminal at St. Louis Lambert International Airport, a $2.8 billion investment. The collaborative efforts between IDOT, MoDOT, and other regional partners are crucial for advancing these projects, according to Mary Lamie, who leads the St. Louis Regional Freightway.

Lamie noted the region’s strong aerospace sector and its significant contributions to the national supply chain. Future investments will also support the region’s top ranking as the most efficient inland port in the nation, enhancing access to barge terminals and industrial parks.

The St. Louis Regional Freightway was established in 2014 by Bi-State Development to support freight movement and infrastructure projects in the region. The Priority Projects List is an annual tool used to advocate for critical infrastructure improvements, reflecting unanimous support from the Freight Development Committee.

For more information and detailed fact sheets on the 2025 Priority Projects, visit freightweekstl.com.  Comments on the list can be submitted by email to MCLamie@TheFreightway.com until August 1.

 Link to List

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