Creating Resilience
Annual North American Cargo Volume Increases by 13%
Port Watch Series Q4 2024
February 26, 2025 5 Minute Read
Key Takeaways
U.S. Consumer Spending Boosted Shipping in Q4
Strong consumer spending drove shipping demand in Q4, as holiday retail sales, increased e-commerce orders and inventory restocking led to higher import volumes. Retailers increased shipments to ensure product availability amid lingering supply chain uncertainties. Businesses sought to preempt potential tariffs by frontloading imports, which led to increased container traffic at major ports.
Tariff Uncertainty Signals Volatility for 2025
Uncertainty about potential tariffs in 2025 is driving cautious decision-making across supply chains. Many companies front-loaded imports in 2024 to mitigate potential cost increases, but the long-term impact remains unclear. If new tariffs are implemented, import volumes could decline as consumers balk at paying higher prices for foreign-sourced goods. Depending on how they are implemented, tariffs could also lead to new shipping demand, as rerouting of cargo could simply shift volumes to different ports or suppliers.
U.S. to Invest $580 Million in Port Infrastructure
The U.S. Department of Transportation’s Maritime Administration announced a $580 million investment in port infrastructure through its Port Infrastructure Development Program. This funding will support 31 projects in 15 states and a U.S. territory, aiming to modernize port facilities, enhance cargo handling efficiency and improve overall supply chain resilience. Key upgrades include expanded container capacity, enhanced rail connections and sustainability initiatives to reduce emissions.
Q4 Cargo Container Volume
- North American cargo volume at the top seaports rose by 10% year-over-year in Q4 and by 13% for the full year, driven by businesses front-loading imports ahead of potential tariffs and ongoing efforts to replenish inventories. However, this surge in trade activity may not be sustained, as companies adjust to economic changes and potential policy shifts.
- The ports of Los Angeles and Long Beach collectively reported a 23% year-over-year increase in container volume in Q4. This was driven by strong trans-Pacific trade, increased imports ahead of potential tariffs and continued inventory restocking. Their strategic role as key gateways for Asian cargo, coupled with improving supply chain efficiencies, enabled them to handle the surge in shipments despite broader economic uncertainties.
- Five North American ports had year-over-year declines in Q4 container volume: Montreal, Prince Rupert (Canada), Vancouver, Charleston and Virginia.
Figure 1: Q4 Cargo Container Volumes
U.S. Seaport & Inland Port Real Estate Fundamentals
- The average industrial vacancy rate for seaport markets rose by 30 basis points (bps) in Q4 to 6.3%, while non-port markets had a 10-bp increase to 6.6%. The average vacancy rate for inland port markets was unchanged at 6.8%.
- Seaport markets with the lowest vacancy rates were Los Angeles (4.2%), Fort Lauderdale (4.5%), Northern Virginia (4.6%), Houston (5.6%) and Northern New Jersey (5.6%).
- Port markets with the most net absorption in 2024 were Houston (21.7 million sq. ft.), Dallas (16.9 million), Atlanta (13.9 million), Chicago (12.3 million) and Savannah (9.4 million).
SPOTLIGHT: Port of New York and New Jersey
- The Port of New York and New Jersey handled 8.7 million TEU cargo containers in 2024, an 11.7% year-over-year increase.
- The port has five modern container terminals that can handle nine 14,000-TEU vessels simultaneously, making it the largest container port on the East Coast.
- Top imports include furniture, machinery, vehicles, beverages, electronics and plastics. Top exports include medical instruments, aircraft parts, computers, jewelry, platinum, scrap iron and copper. Top trading partners include China, India, Italy, Germany and France.
History
The Port of New York and New Jersey, established in 1921, is one of the busiest ports in North America. Its origins date back to the early 19th century, with the opening of the Erie Canal in 1825 facilitating trade and commerce with the American interior. Over the years, the port expanded its facilities, including the development of container terminals in Port Newark and Elizabeth, solidifying its position as a critical hub for international trade.
Sustainability
The Port Authority of New York and New Jersey has committed to achieving net-zero carbon emissions by 2050. Initiatives include reducing greenhouse gas emissions, incorporating advanced technologies to minimize environmental impact and supporting the adoption of alternative energy sources. The port received federal funding totaling $347 million in 2023 to support zero-emission equipment and infrastructure.
Looking Ahead
The Port of New York and New Jersey is focused on expanding its infrastructure and enhancing operational efficiency to accommodate growing trade volume. These initiatives include modernizing terminals, improving cargo-handling capabilities and investing in technology to streamline operations. As global trade patterns shift, the port aims to solidify its role as a premier trade gateway, ensuring long-term competitiveness in the Northeast region.
Port Fact
In 1956, Malcolm McLean launched the first modern container shipment from Port Newark, revolutionizing global trade. His innovation drastically reduced shipping costs and handling times, paving the way for the massive container shipping industry.
North America Seaport Cargo Statistics
Figure 2: TEU Container Activity | Q4 2024
North America Seaport Cargo Statistics, YTD 2024
Figure 3: TEU Container Activity | YTD 2024
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Contacts
James Breeze
Vice President, Global Industrial and Retail Research
John Morris
President, Americas Industrial & Logistics
