Tacoma traffic fall since Maersk pullout continues

The Port of Tacoma's container traffic trend continues downward even as other West Coast ports have seen their numbers begin to climb out of a recession-dug hole, reported The News Tribune.

So far this year, containers account for 58 percent of all cargo handled by the port. In 2006, containers hit their peak at almost 65 percent.

The port's containers are down 9.1 percent for the year through September. And September was 4.6 percent worse than the same time in 2009 – itself a disappointment.

At that rate, the port expects to handle some 1.5 million container units this year.That's about 567,000 fewer than in 2006.

Other major West Coast ports expect 2010 to be better than last. Through August, those ports have posted increases ranging from Long Beach's 10.7 percent to Seattle's 46.5 percent.

That's a question port executives and port commissioners are struggling to find a new formula to create jobs and spawn new business.

Just a few weeks ago, port executives made a quick tour of Asia to ask shippers and shipping lines about what happens next in Tacoma's container business.

John Wolfe, the port's new chief executive officer, said nothing he heard in Asia makes him think a quick rebound is coming. Shipping lines and their customers are cautious about the US economy and the demand it will create for imported goods.

The port's own forecasts reflect that cautious outlook. It will take at least 10 years for the port to reach its previous container traffic peak, said port spokeswoman Tara Mattina.

The cause of the downtrend was blamed on Maersk deciding last summer to move from Tacoma to Seattle.

Brendan Dugan, the port's senior director of container terminal business, said the move to Seattle caught the port by surprise.

"It was a decision made on a global level," Dugan said.

Maersk and another huge container line, CMA CGM, both were faced with a worldwide glut of capacity. They consolidated their routes around the globe, including in the Pacific Northwest. CMA CGM was a Port of Seattle customer. Maersk called at the Port of Tacoma. When the two decided to share capacity, they chose to consolidate operations in Seattle.

Neither port had any input in the decision, Dugan said.

But Maersk's departure took a big chunk out of Tacoma's container numbers and pumped up Seattle's.

Of the Port of Seattle's 46.5 percent increase in container traffic this year, perhaps 28 or 29 percentage points can be attributed to the Maersk move, said Port of Seattle spokesman Peter McGraw.
(Source:www.cargonewsasia.com)