US East Coast container imports hit a new high! The West Coast is becoming increasingly "deserted"

According to a report by Marcus & Millichap, a top commercial real estate brokerage firm in the United States, ports on the East Coast of the United States are now busier than those on the West Coast.

In 2022, the Ports of Los Angeles and Long Beach unloaded 1 million fewer containers than in 2021. Meanwhile, the Port of New York and New Jersey handled 500,000 excess containers, surpassing Southern California’s throughput for the first time in decades.

Marcus & Millichap noted that long-running negotiations between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) have fueled carriers’ concerns about West Coast port closures.

The East Coast ports of Savannah and Charleston also saw record import volumes in 2022. In light of growing import volumes, the ports are in the process of undertaking a $410 million expansion project to increase their cargo capacity by more than 50% by 2025.

The report shows that 20 years ago, about 80% of trans-Pacific cargo entered the United States through ports on the West Coast. As East Coast ports have continued to expand, this proportion has now dropped to 56%.

Marcus & Millichap believes that China’s growing practice of “nearshoring” manufacturing in Latin American countries to reduce shipping costs to the United States will likely continue to influence the future development of East Coast ports.

The report from Marcus & Millichap also shows that third-party logistics companies that receive and transport retail goods have been competing for available industrial space near East Coast shipping hubs. On the other hand, as demand continues to grow, existing property owners may choose to redevelop and build multi-story warehouses.

Editor ✎ Nicole/

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