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Nov 22 2024

US port cargo growth set to slow in 2025 amid economic challenges

Moody’s projections indicate that total container cargo volume at rated ports will grow by only 2% in 2025, a sharp slowdown from the 9% growth expected for 2024.

 

The slowdown is attributed to softening economic growth and weak consumer spending, despite a strong start to 2024, with cargo volumes increasing by an average of 11% in the first eight months of the year.

Risks to port operations remain significant. The incoming president’s proposed tariffs, which could range from 10% to 60% on imports, might reduce trade and lead to a decline in cargo volumes, particularly affecting ports reliant on high trade volumes.

 

Additionally, the possibility of a labour strike starting January 15 at East and Gulf Coast ports could disrupt operations further. Although a tentative agreement in October halted a previous work stoppage, unresolved issues related to marine terminal automation continue to pose a risk to the stability of these critical ports.

 

Cybersecurity remains a growing concern, with recent breaches at several ports, including the Port of Seattle, prompting Moody’s to raise the port sector’s global cyber risk profile to “high risk.” Further complicating the outlook, while Panama Canal traffic has recovered from earlier drought restrictions, future restrictions due to water levels could once again disrupt trade, particularly impacting East Coast ports. Read more

 

Source: LOGISTICS MANAGER