East Coast Ports Falling Behind on Warehouse Space
East Coast ports are failing to meet the booming demand of container traffic due to the tightening supply of warehouse space at or around marine terminals. Port volumes along the East Coast have surged to record highs and will continue to increase when the expanded Panama Canal opens next year. Between 2013 and 2014, shipping containers passing through the 11 largest East Coast ports grew by 9.6%. However, the stock of warehouse space by major ports increased by only 1.2% between 2012 and 2014, the Wall Street Journal reports. The expansion of the Panama Canal will lead to much larger ships visiting these same ports and local governments have spent billions on infrastructure improvements in anticipation of the increased volume. Warehouses will be in even shorter supply once the larger ships arrive. Exacerbating the problem, especially in the ports of New York and New Jersey: the age of most waterside distribution centers and the lack of land to develop more warehouse space. [WSJ]
