12 American Journal of Transportation American Journal of Transportation ajot.com RORO Customer Service 877-918-7676 [email protected] Export Customer Service 800-225-1235 [email protected] Export Documentation 888-802-0401 [email protected] Credit & Collections 888-225-7747 [email protected] Import Customer Service 888-802-0403 [email protected] A SERVICE FROM BALTIMORE TO TRANSIT TIMES ANTWERP 17 DUBLIN 15 BELFAST 16 HAMBURG 14 LIVERPOOL 11 Direct Sailings Reliability — there’s a window perhaps — where there will be lower tariffs. Because if the USTR process is successful, [for] some countries, some com- modities, the tariffs will go again beyond what the 15% is right now…” And as Rooney says there are other factors at play, beginning with the war in Iran [at this writing negotiations are underway between the US and Iran to end the war and open the Strait of Hormuz but no agreement is in hand] and the rise in petroleum prices and the inevitable accompa- nying fuel surcharges applied by ocean carriers and truckers will add to the cost of freight movements. These additional costs to the supply chain will add to the overall costs to goods such as fertilizer for agricultural products and petrochemical products and for thousands of other goods. And while the pass through of tariffs in 2025 weren’t as impactful as anticipated by many economists, the new round of costs is beginning to hit home. Still how much impact these hikes will have on demand for goods and the containership movements to deliver them through ports, like New York/New Jersey, is an open question. And even during this period of a seemingly end- less string of disruptions, it is clear that in the future the Port of New York/New Jersey will need the additional terminal capacity and greater ability to shift more containers inland as the port carries on in its role as the East Coast’s larg- est gateway. Impact of the Bayonne Bridge Project One of the most visible and effective examples of addressing port infrastructure challenges was the raising of the Bayonne Bridge project. The raising of the bridge was part of the overall effort to be ready for the next genera- tion of larger container ships that was already in the early phases of being added to the global containership fleet. PANYNJ was aware that the bridge needed to be raised as nothing larger than a 9,000 TEU could go under the bridge. Larger vessels had to call at the Bayonne termi- nal (at that time called Global Container Terminal, now Port Liberty Bayonne). As Rooney said of the expected surge in ship sizes, “We knew that with the timing of the com- pletion of the Panama Canal expansion, the timing of the completion of our 50-foot deepening project, and the raising of the Bayonne Bridge, which all happened within a short period of each other, that the Port would be ready for larger ships.” Of course, the arrival of “big ships” didn’t happen overnight. “We knew when that capacity across the eco- system was confirmed that the ocean carriers would begin to phase in the larger vessels. We knew that it wasn’t going to be an onslaught, open up the valve and all of a sudden there’s a 10,000 TEU ship on your doorstep.” But the ocean carriers have “done exactly that in terms of phasing it.” And in 2025, “22% of the container vessels that called the Port of New York and New Jersey were in the 13,000 to 13,999 range. So, that’s the largest share… the workhorse of vessels calling the Port of New York and New Jersey is the 13,000 TEU class…. and we’re the first port of call 76% of the time when those vessels arrive. We discharge on average about 65% of the vessel’s capacity and then the rest goes down the coast, usually two other ports that it calls on the East Coast,” Rooney said of the shift in vessel sizes. Although the Bayonne Bridge might be the most public of the port’s infrastruc- ture improvements, consid- erable work is underway and planned as part of the ongoing Master Plan (see box on page 2). And as Rooney points out, it has to be a collaborative effort to work, “We’re not doing this by ourselves. We can build all this big infra- structure, which is what the Port Authority is very good at, but if our terminal oper- ators were not investing in additional capacity and addi- tional infrastructure them- selves with newer, larger cranes, it would all be for naught. Adding, so, the coor- dination that happens across the supply chain is important. And I think it’s notable that now, … the new leases that we’ve negotiated … unlocks new capacity and the terminal operators will be investing heavily in additional capac- ity.” And outside the terminal gates there is also work ahead to help deal with the antici- pated increases in volumes, as Rooney points out, “And at the same time, we’re work- ing on additional capacity outside the gate. So, we are underway in the design of our 55-foot channel that would be deeper and wider. We are underway with a complete rework of the main roadway entrance on the north side of the port. The Port Street Corridor Improvement proj- ect, which is well underway right now. [And] we’ve got additional rail capacity and fluidity with the southbound connector in design. In 2026, a period of uncertainty — there is a cer- tainty: PANYNJ is moving ahead with projects, planning and commitments that will underwrite the port’s capabil- ities to handle the future. to another or from FCL to LCL. [Or] maybe the order volumes have changed to be able to flex from one mode to another or from one carrier to another carrier to another car- rier, but the communication piece to go alongside of that is massive.” No Single Right Way to Manage Disruptions Troy hasn’t seen a “single proven right way” to hedge the ups and downs of the tariff buffeted marketplace. In the case of India, “We saw again with the significant tariffs that went in August from India. We had a lot of clients still procur- ing their freight and storing it in India, waiting for a tariff mitigation with a trade agree- ment to be made [between the US and India]. So, they were still buying, they were still acquiring, but instead of moving the product and stor- ing it in facilities here [US] and warehouses here [US], they were storing it at origin [India]. But then we had other clients get into an inventory bind where then they had no choice but to move it. And there is now. Where there is some tariff relief with some trade agreements happening or the tariffs being overturned, they’re moving as much product as possible to keep longer inventory cycles on the ground here.” NVO’s like Troy also have an information gathering capability because they “work across so many different verticals.” This is critical in understanding on a street level what is happening with vessel rotations and critical business intelligence. As Troy explains, “I’m on overseas calls and what everybody is saying, whether it’s the rotation of vessels in the Middle East due to the ongoing situation, whether it’s a realignment of vessel sharing agreements or certain carriers going out on their own and going away from the alliance structure, it’s the perfect storm from a supply side with the vessel rotations this year.” As a result of the ever-chang- ing situation with the ocean carriers Troy says, “We see a big reset happening on the rotations just because, from the Middle East standpoint, a lot of these containers are not landing where they’re sup- posed to. A lot of these vessels are getting delayed, not by a week or two weeks, but sig- nificantly delayed, not only to that next port of call, but the trickle-down effect after that…. Even if there’s a reso- lution in the short-term from a geopolitical standpoint, the impact on the vessel rotations this year is just going to be, we believe, tremendous.” Still A People Business The rapid-fire disruptions to the supply chain over the past year have had another secondary impact — they reinforce the need for people to communicate. As Troy notes, “But for us, we’ve been closer to our clients this past year than, I think, in a long time just because of the need to be able to flex from one situation to another, whether it be a tariff announcement, and there’s all this freight sitting in India waiting for a green light. And when you get that tariff mitigation or the Supreme Court decision, or anything like that, to be able to make a decision very quickly, in coordination with your client….” And the people-to-people aspect of the business may seem counter intuitive in an era where tech and now AI are saluted as the path forward. But as Troy points out, a more nuanced approach in times of disruption, might be better to handling the challenges, “You could be efficient or as tech-forward as possible or have the best operating plat- form in the world, but when something like this happens; having the right phone num- bers, having the right rela- tionships overseas to be able to route cargo through this way or that way, or even just knowing what’s going on and knowing where your freight is and having a conversation with somebody. I think that’s the importance of pairing that great technology with the right relationships both here and around the world, a hybrid mix that is going to drive companies forward.” (KEY – continued from page 4) (BUILDING – continued from page 2) August 22, 2025, The US Department of the Interior’s Bureau of Ocean Energy Management (BOEM), issued a stop-work order in Decem- ber 2025, the Trump admin- istration ordered construction on five major US offshore wind projects – Sunrise Wind, Vineyard Wind, Coastal Vir- ginia Offshore Wind, South Fork Wind, and Revolution Wind – citing national secu- rity concerns. All five proj- ects received injunctions allowing work to continue. And Interior Secretary Doug Burgum said he planned to appeal those rulings but allowed the deadline for the appeal to lapse as a bipartisan energy permitting reform bill would likely fall had the gov- ernment opposed the proj- ects. On February 2nd, 2026, Sunrise Wind was the last project to be restarted. While there are still many questions as to how the projects will progress, the restarting of the wind projects is a big boost for the CPA and the Port of New London. (HEADWAY – continued from page 11)
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