4 minute read
Give Me Some Space
The Port of New York/New Jersey has long-been a “must-call” container gateway on the US East Coast. AJ Keyes investigates the space and other challenges this status is bringing in 2022
The Port of New York/New Jersey (NYNJ) had an extremely strong 2021 in terms of container volumes handled, but it means that the port enters 2022 facing key challenges, not the least of which is having to fi nd additional space and solving the empty box challenge.
Full year 2021 container throughput for the port of NYNJ increased across all aspects of activity, as shown in Figure 1, and can be confirmed as: 5 Total volumes of 8.98 million TEU – an increase of 18.1 per cent over 2020 5 Loaded imports of 4.59 million TEU – a 16.7 per cent rise year-on-year 5 Loaded exports of 1.36 million TEU – up 3.4 per cent compared to 2020 5 Empties reached almost almost 3.01 million TEU – a significant uplift over 2020 performance
EMPTY STICKING PLASTER
The impact of the strong increase in empties has caused issues for NYNJ. The port authority has confirmed in the international press that it entered 2022 in a position in which empty stacks were “10-high” when the norm should be “eight-high.”
There is additional empty container storage opening-up outside of the port, but it is still a 20-mile dray away for some sites, incurring both time and cost and including the potential need to have to use congested roads, such as the I-95. It also means that quick retrieval of a container is not possible at all times. Some good news will be the 38 acres of land at an old Ivory Soap plant on Staten Island being converted for empty storage, although it is currently subject to a review from New York’s environmental regulatory agency and could take some time yet for the process to be completed.
To try to assist the process, both Hapag-Lloyd and Yang Ming Marine Transport Corp. agreed to waive some fees relating to containers heading back to NYNJ terminals during December 2021 and January 2022. However, this is not a solution, merely a sticking plaster to keep container logistics intact
CAPACITY BUFFER CHALLENGED
The existing terminals are of a large scale, based on North American East Coast benchmarks and comprise a mix of carrier-controlled (APM Terminals), specialist terminal operator (Ports America Group at PNCT) and financial interests, Macquarie at Maher Terminals and Ontario Teacher’s Pension Fund for GCT Bayonne and, GCT NYCT.
All of them commenced 2022 on the back of a highlypositive year in 2021 from a volumes handled, perspective. Equally, though, they faced the significant challenge of providing congestion free terminals and no vessel queues.
During January 2022 there were as many as 12 ships waiting at anchor for berths – this is higher than the comparable January 2021 figure of five vessels.
Sam Ruda, Port Director, PANYNJ, accepts that this number is up. “The anchorage numbers are higher than what we’ve had historically. It’s a little more activity, but not an offthe-charts increase,” he recently stated.
In addition, Ruda contends the port’s “capacity buffer” across all terminals, even the smaller facilities, has helped cope with recent congestion issues and thereby avoids the congestion issues experienced at other ports.
This may be true to an extent, but it is also clear that volumes during the first half of 2022, at least, are going to remain strong. Continued inventory replenishment and ongoing consumer spending IS driving up imports, but at the same time causing issues.
“Strong loaded imports continuing is expected for the first few months of 2022 and probably beyond,” explains Dean Davison, Technical Director Maritime Advisory, WSP, adding, “This in-turn means that there will then be a higher number of empties to go back and the need for empty storage, even off-dock, will again be a regular feature in 2022. It could be a challenging time for the port’s terminals and place stress on logistics transport partners, especially the trucking industry.”
8 Figure 1: Port of
New York/New Jersey Throughput Activity 2020 vs 2021, in ‘000 TEU
NYNJ is aware of this potential challenge and will doubtless be hoping that all areas of the supply chain can keep pace with the anticipated growth. Ruda reflecting on recent performance highlights the scale of the challenge: “We had five years of growth within the last 18 months,” he notes.
“Current NYNJ volumes are probably several years ahead of master plan estimates,” elaborates Davison, adding, “There is a need to develop more space because demand via NYNJ for the local and discretionary markets in the US Midwest is going to continue.”
The new Greenville Yard brings intermodal rail access to the GCT Bayonne facility and complements the existing ExpressRail option as well as reflects an endorsement of PANYNJ’s desire to further increase its share of the large discretionary markets mentioned by Davison.
NYNJ will clearly remain a ‘must-call’ port on the eastern seaboard but its success also brings challenges. The port and all stakeholders will need to be at the top of their game in 2022 to meet the prevailing and future needs of cargo owners and shipping lines.
