NJ Ports See Record Growth and Expansion

The Port of New York and New Jersey hosted the CMA CGM MARCO POLO at APM Terminals at the Elizabeth Port Authority Marine Terminal in May after a transatlantic voyage via the Suez Canal. The arrival set a new record for the largest ship to call in the port of New York and New Jersey.

A shift in consumer spending means “the ships have arrived” while the opportunities “are blowing in the wind!” “

At the start of the COVID-19 pandemic, consumers struggled to stay supplied with basic items like toilet paper and hand sanitizer. The hoarding caused by panic by many Americans only increases consumer worry and anxiety. Today that panic and potential depravity seems to be a thing of the past.

While airport passenger volumes, train ridership, and bridge and tunnel traffic all declined significantly during the pandemic, New Jersey seaports set all-time freight records, including an increase 35% at the Port of New York and New Jersey from March 2019 to March 2021.

In fact, in a fitting tribute to the New York and New Jersey Port Authority 100th anniversary celebration in 2021, the Port of New York and New Jersey hosted the CMA CGM MARCO POLO at the terminal’s APM terminals. maritime Elizabeth Port Authority in May after a transatlantic crossing via the Suez Canal. The arrival set a new record for the largest vessel to call in the Port of New York and New Jersey, dethroning the CMA CGM BRAZIL, which arrived in September 2020. To date, the CMA CGM MARCO POLO is also the largest ship to call. at any port on the east coast of the United States and will continue to break records as it sails south to call at other ports.

Freight trends

“During the pandemic, we saw a significant shift in spending from services, such as travel and meals, towards household items compatible with the ‘stay at home’ economy. The specific containerized shipments that played into this change included furniture, cookware, computers, printers, televisions and home improvement items, ”notes Sam Ruda, director of the Port of New York and New Jersey.

“Another commodity category that has seen a large increase in freight volume includes beer, wine and spirits. Initially, the seaport started to see drops in cargo due to the pandemic from March 2020. In July 2020, cargo volumes started to increase steadily, ”said Ruda. “The Port of New York and New Jersey ended the 2020 calendar year with an increase in total container volume of 1.5%. Since July 2020, the seaport has experienced double-digit monthly container growth, and this continued into 2021. “

The New York-New Jersey Port Industry Economic Value Report 2020, titled “A Critical 21st Century Supply Chain for Region and Nation,” and published by the North Jersey Transportation Planning Authority as member of the Council on Port Performance in collaboration with the New York Shipping Association and other port partners, noted that in 2019, in terms of container volume, the port was both the largest operation on the Atlantic coast and the second largest container port in the United States, handling nearly 7.5 million TEUs, nearly 578,000 vehicles, nearly 50 million tonnes of bulk, nearly 102,000 tonnes of general cargo and 304 cruise ships.

The total impact of the port industry has increased considerably, with more than 506,000 jobs supported in 2019, an increase from the nearly 400,000 jobs supported in 2016, the 336,600 supported in 2014 and the 296,000 jobs supported in 2012. This includes 239,100 direct jobs, 506,350 jobs in total. in the region, more than $ 36.1 billion in personal income, more than $ 99.5 billion in commercial activity generated by the operations of the port industry and nearly $ 12 billion in federal, state tax revenues and local, with local and state tax revenues of nearly $ 4.4 billion and federal tax revenues of nearly $ 7.6 billion.

South Jersey Port Corporation (SJPC) deputy executive director and director of business development Brendan Dugan said port terminals in South Jersey are bustling with activity as the economy rebounds and responds to pent-up demand. “Total tonnage through the first quarter of 2021 was 1,032,313 short tons, an increase of 5% over the same period in 2020. Steel imports at our Camden and Paulsboro terminals lead the way with 542,986 s / ton, a 40% increase over 2020, ”Dugan adds. Wood products increased 35% to 54,363 s / tonne and cocoa beans increased 24% to 35,673 s / tonne. Total turnover is up 2.8%.

“South Jersey Ports specializes in bulk, general cargo and project cargo,” continues Dugan. “The increase in volumes at our terminals is due to the relentless demand for consumer products combined with a switch to bulk and bulk for products such as cocoa and wood products, due to the increasing cost of transportation. by container. Our warehouses are operating at or near full capacity, ”explains Dugan. “Demand for products like slag, which is used in the cement mix, is lagging as many large construction projects have been delayed or canceled during the pandemic, but we expect this to resume shortly, especially if Biden’s infrastructure plan is approved. “

An economic boom

The Port of South Jersey is also well positioned to become the epicenter of the offshore wind industry along the east coast due to its location, infrastructure investments, available land, and integrated road and rail access. . A recently signed agreement paves the way for EEW American Offshore Structures to build a manufacturing facility at the Paulsboro Marine Terminal to support the Orsted offshore wind project. EEW will supply the monopiles, which weigh 5.5 million pounds and measure 850 feet. “This is the first important step in preparing the port for the future of offshore wind,” said Andy Saporito, Executive Director and CEO of South Jersey Ports.

“At the same time, the state of New Jersey is building another offshore wind port, which will bring an additional 200 acres online and complement our work in Paulsboro,” says Saporito. “New Jersey is ideally located for offshore wind projects and most importantly we have a governor who supports the business. He included $ 200 million in this year’s state budget for the project. It will bring a lot of jobs to the region.

“We plan to build on our recent successes and investments in this industry to become a key part of the offshore wind supply chain,” Saporito continues. “There are 17 wind farms planned off the east coast, from Massachusetts to Virginia, and President Biden has made the Jersey Shore a priority for the success of our country. At the same time, we have remained focused on our core business. The Delaware River has been deepened to 45 feet. This will help our terminals to handle larger vessels. We would also like to see an increase in water depth in Camden at some point, depending on demand. There will be continued investments in our terminals up and down the river over the next 5-10 years as we need to make sure we continue to provide the best service to our customers. SJPC is a mainstay of the Delaware River marine industry, which generates $ 77.6 billion in economic activity and supports 192,000 jobs in three states. It is essential to global markets because of its interconnected role in manufacturing and distribution networks. “

“The past 100 years have made the Port Authority a positive and relentless force in the transportation, economic and cultural life of this dynamic New York-New Jersey region,” concludes Kevin O’Toole, Port Authority President . “The future is exciting and unpredictable, but one thing is certain: this agency will continue to be a powerful engine that keeps the region and the country moving forward.

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