News for the seafarers
The Port of Savannah’s Garden City Terminal experienced a significant increase in the number of containership calls last month, with 129 visits for a 26 percent rise compared to October…
Despite a 22% volume decline year over year, the Port of Savannah had its fourth-busiest October, according to the Georgia Ports Authority.
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The Port of Savannah experienced its fourth-busiest October last month, the Georgia Ports Authority said Friday.
The port handled 449,000 twenty-foot equivalent container units last month, GPA said. Although that is down 22% from October 2022, last month’s volumes were 5% higher than pre-pandemic October 2019.
Contributing to the volume increase was the fact that the berths at the Garden City Terminal are now all open, increasing the Port of Savannah’s capacity to handle ships. The port can now host 35 weekly vessel calls, according to GPA.
The Port of Savannah’s Garden City Terminal handled 129 container ship calls in October, which GPA says is 26% higher than in October 2022.
“For the first time in two and a half years, all berths are open at Garden City Terminal for faster, more efficient cargo handling,” GPA President and CEO Griff Lynch said in a release.
At Garden City Terminal, containers moved by rail rose by 9% to 47,750, while at the inland Appalachian Regional Port in Crandall, Georgia, rail cargo increased by 22% year over year, making a record October for that facility.
Since the start of GPA’s 2024 fiscal year on July 1, the Port of Savannah has handled 18% fewer volumes than in the same period in 2023, which had been “some of the busiest months in GPA history,” GPA said. Volume handled fiscal year to date through October was 1.7 million TEUs.
Meanwhile, roll-on/roll-off (Ro/Ro) cargo in October was down on a year-to-year basis but up fiscal year to date. GPA handled 67,500 units of autos and machinery last month, a 5.8% decrease from October 2022. But looking at volumes on a fiscal year-to-date basis, volumes were up 17% to 271,364 Ro/Ro units.
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Canadian Pacific Kansas City and CSX are seeking approval from the Surface Transportation Board to acquire some of the assets of short line Meridian & Bigbee Railroad. They plan to beef up an Alabama interchange as part of an effort to create a Mexico-Southeast corridor.
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Class I railroads CSX and Canadian Pacific Kansas City (CPKC) have requested Surface Transportation Board approval to acquire portions of a southern U.S. short line in a bid to create more efficient rail freight flows between Mexico, Texas and the southeast U.S.
CSX and CPKC are seeking to acquire portions of the Meridian & Bigbee Railroad, currently a subsidiary of short line operator Genesee & Wyoming.
Their plans come as Georgia Ports Authority said separately last week that shifts in world trade patterns will benefit the Port of Savannah (see below).
Leaders from both CPKC (NYSE: CP) and CSX (NASDAQ: CSX) have expressed interest in creating more efficient transport among those regions and establishing “a new direct connection and corridor linking Mexico, Texas and the U.S. Southeast.” CPKC and CSX announced their intentions in June. In August, CSX CFO Sean Pelkey said at an investor conference that “I haven’t seen a new interchange pop up [in my years at CSX] … that is going to be as significant as this one.”
Mexico and the U.S. Southeast are “two of the fastest-growing regions connecting through a third (Texas),” longtime transportation analyst Tony Hatch told FreightWaves.
Indeed, their competitors — Norfolk Southern (NYSE: NSC) and Union Pacific (NYSE: UNP) — have also expressed interest in beefing up offerings among those regions. UP is offering intermodal service that originates on Mexican rail carrier Grupo México from both Monterrey in Nuevo Leon and Silao in Guanajuato to cities in the southeastern U.S.
Meanwhile, NS has a relationship with CPKC in which shippers can utilize the Meridian Speedway to go between Texas and Mexico and the Southeast. NS also has its own service products, including those that involve partners J.B. Hunt and Hub Group, and it recently expanded its intermodal offerings with Florida East Coast Railway.
CSX is seeking to acquire the portion of Meridian & Bigbee Railroad’s 93.7-mile line that runs in Alabama between Burkeville and Myrtlewood, according to an Oct. 6 filing to STB. That same day, CPKC filed a request to STB seeking to acquire the western line of the Meridian & Bigbee line. It consists of approximately 50 miles of track between Meridian, Mississippi, and Myrtlewood.
CSX and CPKC say this arrangement would enable the railroads to create a direct interchange at Myrtlewood. Doing so would eliminate the need for an intermediate carrier on overhead traffic, according to CSX’s filing, and it would allow the railroads to avoid more congestion-prone and weather-sensitive interchanges, such as New Orleans.
“The new, more efficient gateway at Myrtlewood will allow CSXT and CPKC to compete more effectively with other carriers and modes in the region,” CSX said in its filing.
If CSX and CPKC are able to acquire these assets, then it would allow both railways to create a new freight rail corridor that will expand shipping options for intermodal, automotive and other interline traffic, CPKC said. The Meridian and Bigbee would also retain trackage rights to provide local service, the railway continued.
“CPKC’s investments in track infrastructure [as a result of this acquisition] will enable faster, more efficient, economical, and safe operations on the Western Line,” the railway said in its filing, and it “will create a direct Class I to Class I connection that will provide improvements in the efficient movement of existing and future intermodal, automotive, and other interline traffic between the Southeastern United States and the Southwestern United States and Mexico. Creation of this Class I freight corridor will expand customer market reach, and by converting truck traffic to rail, reduce highway congestion. It will also benefit the environment by reducing fuel consumption.”
The railways also told the board that the acquisitions should be considered “minor” transactions, which means they wouldn’t require as extensive a review process by STB. Minor transactions tend to be those in which anticompetitive concerns don’t appear to be an issue for shippers.
The Meridian & Bigbee, which G&W acquired in 2005, currently has interchanges with Atlantic & Gulf Coast Railway at Linden, Alabama; with CSX at Montgomery, Alabama; with CPKC at Meridian; and with Norfolk Southern at Selma, Alabama, and Meridian.
CSX operated the Meridian & Bigbee prior to G&W’s takeover of the line.
The filings from CSX and CPKC don’t mention Georgia and the Port of Savannah to STB. But Georgia Ports Authority officials at the Savannah State of the Port event last Thursday noted the manufacturing shift to the Southeast. The region, which GPA says includes Texas, Florida, North Carolina, Georgia, South Carolina and Tennessee, has also grown in population by 9% since 2012.
CPKC said in its Oct. 6 filing to STB on the request to acquire the western line of the Meridian & Bigbee that its proposed plan with CSX would “position CPKC to compete for the new traffic that will be generated by several new automotive plants that are planned to open in the Southeastern United States in the next few years.”
The trend toward source shifting to Southeast Asia, which consists of adding a Southeast Asian country in addition to China for manufacturing needs, favors U.S. East Coast delivery via the Suez Canal, GPA said. Furthermore, India’s status as a growing economy represents business opportunities for GPA customers, the port authority continued.
“We need to be ready for future economic cycles. We’re talking to customers and designing a gateway port and inland supply chain that meets their long-term requirements. We’re all-in on this. The decisions we make will decide who we become as we prepare for the next wave of future cargo,” GPA President and CEO Griff Lynch said in a release. “Savannah’s ocean carrier customers are upsizing their vessels; 80 percent of the container ships entering the port are 11,000 TEU or larger.”
GPA plans to focus on a “mid-American arc” that will stretch from Dallas to Chicago and Cincinnati, and it cited its proximity to Charlotte and Rocky Mount, North Carolina, and Miami, Tampa and Orlando, Florida.
Two new partnerships also have sprouted or are underway: CSX’s Carolina Connector service to Rocky Mount, which GPA says could open up Ohio Valley opportunities, and Norfolk Southern’s slated Blue Ridge Connector service to northeast Georgia, which will open in 2026.
GPA’s Mason Mega Rail is also now fully operational. GPA says the service “provides the greatest on-dock rail capacity of any port in the Western Hemisphere.” The 85-acre intermodal terminal has the capacity to put together and receive six 10,000-foot trains simultaneously, according to GPA’s website.
GPA said it handled 5.4 million twenty-foot equivalent units in its 2023 fiscal year, and it forecasts 4%-6% growth in the coming years.
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The Georgia Ports Authority reported a dip in August volumes at the Port of Savannah. But volume increases for rail traffic and roll-on/roll-off cargo were bright sports for GPA last month.
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Port of Savannah volumes slumped year over year (y/y) in August amid gains for rail volumes at the Georgia port’s Garden City Terminal.
August volumes totaled 413,300 twenty-foot equivalent units at the port, which is 28% lower than August 2022, the busiest month on record for the Georgia Ports Authority.
Port volumes softened amid some ongoing construction work, according to GPA President and CEO Griff Lynch.
“We are in the midst of rebuilding some of our berths, which has reduced our operating capacity in August,” Lynch said Tuesday.
The container berth 1 renovation is now complete with four new cranes operating, while four more new crane installations will be completed by the end of the year. The renovations will enable Garden City Terminal to simultaneously serve seven ships, including four vessels with a capacity of more than 16,000 TEUs, GPA said.
Despite the y/y dip, Georgia Ports reported increases in other areas in August, particularly for rail. Garden City Terminal at the Port of Savannah handled 49,115 containers, a 6% increase compared with August 2022. Intermodal cargo represented 21.6% of total containers, which is 7% higher y/y, GPA said.
The Mason Mega Rail Terminal is also fully operational, according to Lynch. Meanwhile, GPA and Class I Eastern U.S. rail carrier CSX (NASDAQ: CSX) announced earlier this month that they are offering an intermodal service that will provide a direct rail connection between the Port of Savannah and CSX’s intermodal terminal in Rocky Mount, North Carolina. The service will run seven days a week and have a ship-to-shore time of about three days.
Other volumes grew in August for GPA: Roll-on/roll-off cargo grew by 8% to 61,300 units, with Colonel’s Island Terminal at the Port of Brunswick handling the bulk of that volume, moving 59,720 units.
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The Port of Savannah handled 413,300 TEUs in August, down 28 percent from August 2022, the Georgia Ports Authority’s busiest month on record. However, Roll-on/Roll-off cargo saw an 8% increase,…
The new service will provide a direct connection from the Port of Savannah to CSX’s intermodal terminal in Rocky Mount, North Carolina.
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Eastern Class I railroad CSX and the Georgia Ports Authority are offering an intermodal service that will run seven days a week and provide a direct rail connection between the Port of Savannah and CSX’s intermodal terminal in Rocky Mount, North Carolina.
The service, which will have a ship-to-shore time of about three days, connects GPA’s Mason Mega Rail terminal in Savannah with the CSX Carolina Connector (CCX) terminal in Rocky Mount, according to an announcement Thursday about the new service.
Both entities touted the benefits of the partnership for importers and exporters. While the Mason Mega Rail terminal is the largest intermodal facility on a port in the Americas, according to GPA, CCX has easy access to Interstate 95 and three wide-span, zero-emission electric cranes. CCX also has technology that automates the in-gate process for trucks.
“This is an exciting logistics solution for existing and new customers across North Carolina,” GPA President and CEO Griff Lynch said in Thursday’s news release. “In collaboration with CSX, we’re offering daily access and faster service, bringing world-class port services to the doorstep of the area’s business and industry.”
Said Kevin Boone, CSX’s (NASDAQ: CSX) executive vice president of sales and marketing: “The integration of GPA’s On-Dock Rail and the Inland Port at CCX signifies a leap forward in providing efficient, sustainable, and dynamic rail-to-truck inland port container service for our customers. Through this strategic collaboration with the Georgia Ports Authority and our ongoing partnership with the State of North Carolina and North Carolina Ports, CSX is charting a new course in logistics excellence.”
In addition to the assets at Mason Mega Rail and CCX, exporters and importers can take advantage of the Port of Savannah’s new Garden City Terminal West yard, which has longer-term storage options, according to GPA.
“The GCT West yard allows importers to store retail goods or manufacturing components until they are needed, without the need to pay demurrage,” Flavio Batista, GPA’s vice president of sales and marketing, said. “Similarly, exporters will be able to pre-stage their cargo on-terminal to await vessel loading.”
At Rocky Mount, customers have gate access seven days a week to pick up or drop off containers on chassis, according to the release.
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Four new Super Post-Panamax ship-to-shore (STS) container cranes arrived at the Port of Savannah on Thursday, part of $1.9 billion in infrastructure improvements that will help boost capacity at the…
Container volumes in July rose sequentially by 17% but were down by 16% year over year at the Port of Savannah, the Georgia Ports Authority said Thursday.
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July container volumes at the Port of Savannah were 17% higher than in June but 16% lower than in July 2022, which was the busiest July on record for the Georgia Ports Authority.
GPA handled 447,590 twenty-foot equivalent units in July, compared with 381,825 TEUs in June and 530,800 TEUs in July 2022.
The reopening of container berth 1 at Garden City Terminal may have helped GPA see an increase in volumes in July, according to GPA President and CEO Griff Lynch. Now that dock renovations have been completed at the container berth, annual berth capacity has increased by 25% and the terminal has an expanded ability to serve vessels with a capacity greater than 16,000 TEUs.
GPA is also anticipating a transload facility to come online in September and long-term storage to open up in November at Garden City Terminal West. There are plans to renovate the berths and container yard at Ocean Terminal as well.
The ports authority is also awaiting the arrival of four new ship-to-shore cranes later this month, which will become operational in December. Four other new ship-to-shore cranes arrived in February and were operational in July, GPA said.
With these expansions and renovations, GPA expects container capacity at the Port of Savannah to grow by approximately 3.5 million TEUs per year, with annual capacity reaching 10 million TEUs by 2026.
“The expanded berth and four of the largest ship-to-shore cranes in North America came online last month, providing faster vessel service and an increase of 1.5 million TEUs in annual berth capacity,” GPA Chief Operating Officer Ed McCarthy said in a release. “The Port of Savannah can now serve five big ships simultaneously, and has eliminated its vessel backlog.”
Meanwhile, volumes for roll-on/roll-off cargo in July reflected a “strong showing in fiscal vehicles” that was seen toward the end of GPA’s 2022-2023 fiscal year and into the first month of fiscal year 2023-2024, according to Lunch. GPA’s new fiscal year began July 1.
GPA handled nearly 71,000 units of autos and heavy machinery in July, a 23% increase year over year.
“The primary driver [for the increase] is increased production supported by better microchip availability,” Lynch said.
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The Port of Savannah saw a big jump in container volumes last month compared to June, but total throughput remained far below last year’s unusually busy July. The Georgia Ports…
A decline in loaded import volumes pulled the Georgia Ports Authority’s overall 2023 volumes lower.
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The Georgia Ports Authority handled 5.4 million twenty-foot equivalent units in its 2023 fiscal year ending June 30, down 6.7% from fiscal year 2022 but higher than the 5.3 million TEUs moved in 2021 and the 4.5 million TEUs moved in 2019 before the COVID-19 pandemic.
Of that total, GPA handled 1.13 million TEUs in loaded imports at the Port of Savannah in 2023, nearly 61% lower than 2022. Loaded export volume at Savannah for 2023 was 684,806 TEUs, down 49% year over year.
But GPA said its annual growth rate for overall volumes since 2019 is 4.7% per year, according to a Tuesday news release.
Although volumes may have declined year over year (y/y) at the Port of Savannah, they grew in other places. The port authority said 2023 was a banner year for roll-on/roll-off (ro/ro) volumes, with GPA handling more than 723,500 units in 2023, which is not only a record but also 18% higher than fiscal year 2022.
Ro/ro imports were up by 24% and exports rose 7% in 2023, GPA said. Nissan also became a customer at Colonel’s Island Terminal at the Port of Brunswick, which contributed to the increase in ro/ro volumes.
“The Port of Brunswick achieved strong growth in the import and export of heavy machinery, while auto manufacturers’ improved microchip supply also meant an increase in vehicles,” GPA President and CEO Griff Lynch said in the news release.
Port officials also touted the Port of Brunswick’s access to short-sea trade out of Mexico, as well as its current acreage and ability to grow.
“As manufacturers continue to invest and ramp up production in that region, Colonel’s Island is in a strong position to capitalize on this trade lane,” said GPA Chief Commercial Officer Cliff Pyron. “We have already begun to see the benefits of Brunswick’s first port-of-call status from Mexico.”
Besides the Port of Brunswick, inland terminal Appalachian Regional Port handled its highest volumes ever, according to GPA. The terminal handled 33,700 rail lifts, which is more than 18% higher y/y.
Despite the drop in volumes between fiscal years 2022 and 2023, GPA said the Port of Savannah reached an 11.2% market share in container trade through April, according to recent PIERS data. The data, which consists of import and export data at the bill of lading level, accounts for container trade occurring at U.S. ports on the East, West and Gulf coasts.
Market share may have also increased as shippers sought to hedge their exposure to the West Coast ports, where port workers at facilities including Los Angeles and Long Beach had been negotiating over a labor contract.
“This continues a trend stemming from the U.S. Southeast’s fast-growing population, increased domestic production and a shift in overseas manufacturing toward India and Southeast Asia, favoring delivery via Savannah,” Lynch said. “I’d like to commend GPA employees, and our partners at Gateway Terminals and the International Longshoremen’s Association, for their outstanding work during our second-busiest year ever.”
Meanwhile, June volumes fell 22.7% y/y to 381,825 TEUs. June volumes were also 14.5% lower than June 2021. But compared with the pre-pandemic month of June 2019, volumes were up 5.5%.
June ro/ro volumes were 58,400, up 43.6% compared with a year ago amid new customers and improved availability of microchips used in the manufacturing of automobiles.
Both overall volumes and ro/ro volumes are corrections from the pandemic’s impact on the market, according to GPA, which said other factors include the shift in consumer spending from goods to service and slower purchases by retailers because of backlogged inventory.
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