US Ports and Intermodal Systems Handle Surge in Volumes

US container gateways and intermodal networks have effectively managed increased traffic without disruption, boosting confidence in their ability to handle future record volumes. Analysts highlight Southern California’s container gateways as key players in maintaining fluid operations, with strong 2024 volumes, driven by efforts to avoid import tariffs and potential strikes on the US East Coast.

US West Coast ports saw a 20.7% increase in imports from January to October 2024, while East and Gulf Coast ports reported growth of 9.7% and 5.9%, respectively, leading to an overall 14.8% rise in US containerized imports. The intermodal system, including drayage, warehousing, and chassis availability, has coped well with this surge. While intermodal train speeds have slightly lagged, performance metrics show that the system remains efficient.

However, a significant imbalance in imports and exports has led to a higher number of empty containers being moved to the West Coast. The container deficit has risen from 8,189 in 2023 to 14,921 per month in 2024.

Looking ahead, US ports can handle more volume without major infrastructure expansion. The Port of Los Angeles, for example, operates at a lower TEU-per-acre rate than Vancouver, suggesting room for growth. Offsite container storage, such as the BNSF intermodal facility in Barstow, could ease pressure on docks.

Despite potential automation improving terminal capacity, progress has been slower than anticipated. Mr. Gross predicts that the growth disparity between imports and domestic demand will soon balance out, and the trend of cargo shifting from the West to the East Coast will continue, driven by increasing trade with ASEAN countries and India. Ports like Houston, New York/New Jersey, Virginia, and Savannah have expanded their market share in recent years.