WASHINGTON: The Port of Charleston is off to a strong start this calendar year, though a major sea change in the shipping industry could disrupt the flow of cargo in the coming weeks. The State Ports Authority said it handled 11.3 percent more containers at its terminals in February than during the same month of 2016. Most other business categories also showed increases, according to the latest figures. At its recent monthly meeting, the SPA staff told board members that last month was its busiest February on record. The equivalent of 175,820 20-foot-long shipping containers crossed the SPA’s terminals in Mount Pleasant and North Charleston.
The SPA’s smaller cruise business also reported a gain. The number of passengers who boarded pleasure ships at Union Pier, namely the Carnival Ecstasy, climbed by 15 percent to about 18,000 from a year ago. Vehicles shipped in or out of Charleston’s port posted a 7 percent decline to 22,000. The combined activity resulted in $19.3 million in revenue for the SPA in February, an 11.5 percent increase. Operating earnings more than doubled to almost $6 million. Since the SPA’s fiscal year began July 1, containerized cargo shipments are up almost 9 percent to 1.39 million 20-foot boxes.
CEO Jim Newsome said the business could be bumpy in the short term because of some big changes coming to the high seas. “Looking ahead, spring is traditionally a busy season for us, but volumes may be inconsistent due to the implementation of new shipping alliances,” he said. Newsome was referring to the launch of three major maritime partnerships that involve rival lines sharing vessels and collaborating in other ways to cut expenses and the glut of container ships. The Port of Charleston largest carriers – Maersk Line and Mediterranean Shipping Co. – will operate under the 2M Alliance starting April 1. Two others – THE Alliance and Ocean Alliance – are being formed by six smaller lines. They also take effect Saturday. The shipping side of the container industry is awash in too many big cargo vessels, which has led to a fierce price war and deep financial losses.
