A panel of U.S. seaport executives gathered at the American Association of Port Authorities’ annual legislative summit, “Strong Ports. Strong America.” to share their insights on the rest of 2023. As they prepare for the fall peak shipping season, the executives expressed concerns about the current volumes being below sustainable levels, with some blaming retailers overbuying and mistiming their goods. Despite these concerns, the executives remain cautiously optimistic that cargo volumes will improve in the second half of the year. However, they also raised concerns about the impact of potential interest rate increases by the Federal Reserve on consumer demand.
Another issue discussed was the delay in completion times for eight port-deepening projects, with six of them falling behind schedule. Lasse Petterson, CEO of Great Lakes Dredge & Dock, emphasized the importance of federal funding for port deepening and expressed concern about the process of continuing resolutions from lawmakers that can make the industry hesitant to invest.
The panel also touched on the need for timely resolution of contract negotiations between dockworkers and marine terminal employers to avoid disruptions on the waterfront. Tom Van Eynde, director of Terminal Investment Limited, highlighted the importance of coming to an agreement soon to keep things operating normally, particularly with the threat of more volume moving to the East Coast due to West Coast labor uncertainty. John Wolfe, CEO of the Northwest Seaport Alliance, commended the workforce for their efforts and encouraged both sides to negotiate in good faith.
Overall, the panel remains optimistic about the second half of 2023, but acknowledge that mixed data and sentiment, along with various external factors, make it difficult to predict with certainty what lies ahead for U.S. seaports.
In conclusion, the U.S. seaport executives at the American Association of Port Authorities’ annual legislative summit are cautiously optimistic about the rest of 2023. While there are concerns about the delay in completion times for port-deepening projects, the impact of interest rate increases by the Federal Reserve on consumer demand, and contract negotiations between dockworkers and marine terminal employers, the panel remains hopeful that cargo volumes will improve in the second half of the year. They emphasize the importance of federal funding for port deepening, timely resolution of labor disputes, and good faith negotiations between both sides. Overall, the future of U.S. seaports remains uncertain, but the panelists remain determined to face any challenges that may arise with resilience and o
