Cargo Business Newswire

Tuesday, March 11, 2014

Drewry: Most U.S. East Coast ports not ready for big ships in 2014

Drewry says the changes that are coming for the Trans-Atlantic trades in the second quarter of 2014 might mean big trouble for the U.S. East Coast ports that are not quite deep enough for fully laden New Panamax ships and already have strained truck and rail capacities.

In Q2 of this year, the proposed port rotations of the G6 and P3 container carrier alliances between Northern Europe and the U.S. East and Gulf coast means the big ships will come to call on the Trans-Atlantic trades, according to the latest issue of Container Insight by Drewry Maritime Research.

According to their proposed service line-up, Hapag-Lloyd, OOCL, NYK, HMM, APL and MOL will offer only three jointly run schedules beginning in Q2. Maersk, MSC and CMA CGM will offer another three through the P3 alliance, as well as two between the Mediterranean and U.S. East and Gulf coasts, if the appropriate regulatory bodies grant approval, the story said.

Drewry predicts that this might lead to mega ships over 8,000 TEUs replacing currently deployed vessels with capacities between 3,500 and 6,500 TEUs, as long as the USEC and USGC ports can accommodate the larger ships.

Part of the problem posed by Container Insight is that many USEC/USGC ports have been preparing for the arrival of deep draught ships of 8,000 TEUs or more starting in mid-2015, when the newly widened Panama Canal is due to open, not Q2 of 2014.

On the Trans-Atlantic trades, heavier industrial goods prevail, and both inbound and outbound vessels are often well laden. Fully laden with heavy cargo, a typical 8,000-TEU ship has a draught of around 47 feet, which requires a channel depth of at least 49 feet.

This brings attention to the status of dredging projects on the U.S. East Coast.

Drewry reports Norfolk and Baltimore are prepared with 50-foot channel depths and the Port of New York/New Jersey has almost completed its 50-foot dredging program. The Bayonne Bridge needs to be raised for 13,000-TEU ships, although vessels up to 9,000-TEUs can currently access the port complex.

The remaining main USEC ports would face challenges if fully loaded 8,000-TEU ships were deployed by the G6 and P3 by mid-2014, as their current channel depths range from 40-45 feet. All have channel-dredging projects, but are at different phases. Miami expects to have its 50ft channel completed by 2015 but Savannah, Charleston, Jacksonville and Port Everglades will be at least three years later.

Significant for the ports will be the Trans-Atlantic trade rotations, Drewry notes, especially for the ones that become the first call inbound and/or last call outbound. Bigger ships will mean greater volume peaks, which will put greater pressure on truck and rail operations that are already experiencing congestion, long wait times, and the ensuing labor turmoil.

According to Container Insight, the G6 is planning 2014 calls in New York/New Jersey, Norfolk, Charleston, Savannah, Port Everglades, New Orleans and Houston, and P3 calls in New York/New Jersey, Boston, Baltimore, Norfolk, Charleston, Savannah, Miami, New Orleans, Mobile and Houston. The P3's Mediterranean services will also call at Port Everglades.