Vessel congestion building outside Charleston, Savannah

Congestion is building outside the southeast US ports of Charleston and Savannah, with more than 20 vessels combined awaiting a berth due to an ongoing infrastructure project at Charleston as well as the lingering effects from the software malfunction the port experienced almost two weeks ago.

The Port of Charleston and South Carolina inland ports in Dillon and Greer were closed for nearly two days May 20-21 because of the software problem.

“The backlog we’re experiencing is in part from our temporary operational impacts from last week, but also due to ongoing work with the toe wall project at Wando Welch Terminal — a critical infrastructure project for our operations,” a spokesperson for the South Carolina Ports Authority told the Journal of Commerce Friday.

The spokesperson said the toe wall structure maintains a stable slope beneath the wharf and provides an edge for berth deepening, improvements that will allow the berths to maintain a depth of 54 feet.

The toe wall project will keep one of the three berths at Wando Welch out of commission until the fall, meaning the terminal will only be able to handle two vessels at a time until the work is completed. That could result in anchored vessels outside Charleston until then.

“We are working diligently to bring the Leatherman Terminal back online, which will provide additional capacity,” the spokesperson said. “We are offering a virtual vessel queue time in which we communicate with ocean carriers about our estimated berthing time and their ETA. This helps them avoid rushing to wait, enabling them to save fuel, time, and money.”

The Leatherman Terminal has been underutilized since it opened in 2021 after the International Longshoremen’s Association sued ocean carriers calling the terminal because non-union labor operated its cranes and other lift equipment. The US Supreme Court declined to hear an appeal in February of a lower court decision upholding the union’s right to sue.

Meanwhile, some ocean carriers have decided to switch their rotations to stop in Savannah before Charleston, according to a source who asked not to be identified, causing congestion to build there, too. It’s essentially the reverse of what happened in 2022 when berth construction in Savannah caused vessels to anchor outside that harbor and resulted in ocean carriers switching some rotations to stop in Charleston first.

There have been no significant complaints about the congestion at either port from importers restocking on inventory, but it’s possible the delays will cause some consternation for exporters who will have to pay attention to the earliest receiving dates to bring cargo into the terminals.

Source:

Ashe, A. (2024, May 31). Vessel congestion building outside Charleston, Savannah. Journal of Commerce. https://www.joc.com/article/vessel-congestion-building-outside-charleston-savannah_20240531.html

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