Ocean cargo/global logistics: Port of Seattle reports solid start for new year

Another sign that U.S. West Coast seaports may finally be rebounding was reflected in new December numbers in the Pacific Northwest.

Patrick Burnson -- Logistics Management, 1/26/2010

SEATTLE--Another sign that U.S. West Coast seaports may finally be rebounding was reflected in new December numbers in the Pacific Northwest.

When the Southern California ports of Los Angeles and Long Beach reported a surge in throughput last month, it was not an isolated incident. The Port of Seattle is coming out with a similar story.

Throughput figures for December, 2009 were robust, with inbound cargo imports ramping up 32.6 percent and outbound having doubled. When Maersk Line and CMA CGM began a new service to Seattle, an upward trend in traffic became starkly evident. And with Hanjin Shipping reinstating Seattle in one of its trans-Pacific services, port officials are even more optimistic.

This is in contrast to reports issued just a few months ago. As reported in LM, officials then had said that the port's 2010 budget plan would be slashed by commissioners with significant workforce downsizing. The port had forecasted a net operating income for 2010 of $37.5 million.

The forecast may have to be recalibrated, given the recent development, said analysts. Furthermore, the port has room to grow and absorb anticipated demand. It has recently completed its acquisition of the Eastside Rail Corridor from BNSF Railway, which may attract even more inbound vessel calls in the future.

"The port's goal has always been to preserve the corridor and place it in public ownership, and we've accomplished that goal," said Port of Seattle CEO Tay Yoshitani. "I'm grateful to BNSF for their willingness to work with the port, and to our partner agencies for joining us in the effort."

Oakland, which has had its share of layoffs in response to diminished container throughput and fewer inbound calls, also said things are looking up.

"Our 2009 twenty-foot equivalent unit (TEU) volumes were down only 8 percent from 2008," said maritime director James Kwon. "But our outbound volume actually increased 6.5 percent. These numbers reflect strong performance in a weak global economy."

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