Will Cargo Be Permanently Diverted Away From West Coast Ports?

This is a question on many of our minds.

The fact is that despite many companies who state that they have retained their shipments through West Coast Ports, East Coast ports have seen a 12% increase in April and Gulf Ports have seen a 20% increase in the same month. West Coast Portals have dropped by 4 percent*.

Many claim that it is the lack of guarantee and the doubt that another disruption can be prevented without serious changes in how cargo is processed that may be prompting the reallocation of cargo. According to an article on joc(dot)com, “Pacific Maritime Association President James McKenna, [who] told JOC.com that the current system is ‘not sustainable.'” Much uncertainty persists among shippers who depend on cargo reaching their destinations on time, without disruption.

Joc(dot)com, an excellent industry resource, recently released the results of a survey. The results were:

“Just over 65% of the shippers who responded to JOC’s survey reported that they plan to divert cargo from West Coast ports in 2015 and 2016.” Only 33.8% said that they would ship less cargo through West Coast Ports.

If CEOs of companies that depend on West Coast ports continue to perceive the ports as ‘unreliable,’ what will the long term effects be given the relatively congestion-free environment in Southeast Ports, for example? Ultimately, what will the impact be on East and Southern Ports?

*source: joc.com