Cargo volumes approaching 2008 levels; exports remain strongBy Peter A. Buxbaum, AJOTThe Port Authority of New York and New Jersey can be encouraged by recent cargo volume numbers. Of particular note is the growth in exports, with a healthy nine percent increase during 2010 and an impressive 18 percent rise so far this year. But cargo volumes have still not reached pre-recession levels. This is testimony to the profound effect the global downturn had in international trade. The Port Authority announced that cargo volumes at the Port of New York and New Jersey rose 16 percent in 2010. Cargo volumes for 2011 are up as well, except in the automobile sector. While the numbers are an encouraging sign of growth, they are still not quite even with the record levels of traffic reported in 2007 before the global economic downturn hit. During 2010, total container traffic in the port was 5.3 million loaded and empty TEUs, compared to 4.6 million in 2009. The number of TEUs was about 7,000 below the figure reported in 2007. “Last year we saw volumes come back to just about 2008 levels, which was a record year for the port,” said Rick Larrabee, the director of port commerce for the Port Authority of New York and New Jersey. “This came as a bit of a surprise and all of us were happy to see this happen.” This year has also started with healthy volume increases, according to Larrabee: containers are up over 14 percent and volumes on ExpressRail, the port’s on-dock and near dock train services, are up over 22 percent. The Port Authority had projected earlier this year that the port’s facilities would handle approximately three million containers this year, an increase of 4.3 percent from 2010 container activity, and a three percent to four percent annual growth rate in coming years. “We had predicted a more modest growth pattern this year time and time will tell how it will work out,” said Larrabee. “There are some headwinds in the economy and overall things looked pretty positive during the first quarter.” All this means that the port of New York and New Jersey has retained its spot as the largest port on the east coast and the third largest in the United States behind Los Angeles and Long Beach. The Port handles approximately 31 percent of all east coast cargo. Twenty percent of cargo handled at the port is destined for locations beyond the immediate region. “These locations that can be served by other ports,” said Larrabee. “This discretionary cargo is part of a highly competitive market that every port in the U.S. and Canada seeks.” Loaded TEUs at the port in 2010 totaled 4.1 million of which 2.6 million were imports and 1.5 million were exports. Imports grew 14.9 percent from 2009, while exports rose 9 percent. The big news at the port is the increase in exports, which is a pattern which has been seen continuing into 2011. “We have seen exports grow by 18 percent so far this year,” said Larrabee. “That is reflective of the lower value of the dollar” which tends to aid exports by making the price of U.S. goods cheaper overseas, “and other factors. We as a port joined with other organizations in supporting President Obama’s initiative to dramatically improve exports by doubling them over five years. That seems to many to be a pretty good stretch.” The Port Authority is taking advantage of these favorable conditions to promote exports through the port. Specifically, the port is promoting the use of containers to export grains and other agricultural commodities, as well as pulp materials, exports which usually move as bulk or breakbulk cargoes. The Port Authority conducts regular outreach programs with shippers in the Northeast and the Midwest to educate them about the advantages of the port of New York and New Jersey, noted Pete Zantal, the Port Authority’s general manager for analysis and industry relations. “One of our warehouses is moving 150 boxes a day loaded with these products,” said Larrabee. “Shippers are taking advantage of the large number of empt