East Coast ports continuing to see shipping volume growth
Nearly three years since the Panama Canal Expansion opened, TEU volume continues to grow - especially for East Coast ports.
April 23, 2019
- Nearly three years since the Panama Canal Expansion opened, TEU volume continues to grow - especially for East Coast ports. The expansion added a new lane of traffic with increased depth and width to accommodate bigger ships coming from Asia to the U.S. East Coast.
- Since 2008, TEU volumes on East Coast ports’ have increased by 46.8 percent. West Coast is seeing growth as well, albeit at a much slower rate of 18.4 percent. East Coast ports have become equipped to handle the larger, mega-ships with capacities up to 15,000 TEUs, compared with the 5,000 TEUs previously. This increase allows for more product to be shipped to the East Coast from North Asia via Transpacific routes - decreasing transportation costs to the customers.
- With the uptick in container volumes, warehouse space near the port markets are seeing historically low vacancy levels. There is increased demand by port users for logistics space in both - port markets and major metros near the ports, which has led to an increase in warehouse inventory.
- Nearly two-thirds of the U.S. population takes residence east of the Mississippi River. With the rise of e-commerce and the population base, we anticipate TEU volumes on the East Coast to continue the upward growth trajectory.
Source: JLL Research, JOC