The Port of Savannah saw a dip in demand throughout the month of November.
“While we are planning for a moderation in the container trade, we expect volumes to remain strong, though shy of the historic highs of the past year,” said Georgia Port Authority (GPA) chairman Joel Wooten.
The GPA moved 464,883 twenty-foot equivalent container units (TEUs) in November.
This is a decrease of 6.2% or 30,866 TEUs compared to the same month last year.
Compared to November 2019, Savannah shows an increase of 28% over three years. That rate of growth is well above GPA’s pre-pandemic expansion, which averaged four to five percent annually.
“Container trade at U.S. ports is returning to a more sustainable growth pattern, which is a positive development for the logistics industry,” said GPA executive director Griff Lynch. “Along with the addition of more than one million TEUs of annual capacity, a slight reduction in demand will mean faster vessel service as we work to bring a new big ship berth online at Garden City Terminal in July.”
The decline is attributed to inflation and a shift in consumer spending, which has reduced manufacturing and subsequent container demand.
Weather has also played a role. The Savannah River channel was closed to large vessels for three days due to adverse weather, including Tropical Storm Nicole.
According to Lynch, the current lull has allowed Savannah to reduce its vessel queue to 17 container ships. This is down 43% from Nov. 1, when there were 30 vessels at anchor. GPA expects to clear the backlog by early January.
The Authority announced last week its intention to renovate the docks at Ocean Terminal in Savannah. This will provide two additional big ship berths, and transform the 200-acre facility to a container-only operation by 2026.
“Announcements from automakers and other manufacturers coming to Georgia, as well as an array of their suppliers, will mean healthy increases in trade over the long term,” said Wooten.
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