Imagine a massive cargo ship, loaded with goods from Asia, slowly entering a port on the US West Coast. Its enormous size presents unprecedented challenges to port capacity, infrastructure, and the entire supply chain. As the Panama Canal expansion reshapes global trade routes, American ports are engaged in fierce competition to upgrade their facilities and secure advantageous positions in the evolving trade landscape.
West Coast Ports: Opportunities and Challenges in the Era of Mega-Ships
The Supply Chain Management Review (SCMR) recently interviewed Brendan McCahill, Senior Vice President of Trade Content at Descartes, discussing the latest developments in US port infrastructure and their potential impact on supply chains.
SCMR: With the Panama Canal now accommodating more neo-Panamax vessels, will West Coast ports become more dependent on these "mega-ships"?
Brendan McCahill: West Coast ports are undoubtedly handling increasing numbers of mega-ships with tight berthing schedules. However, these vessels primarily operating on Pacific routes could be redirected to Asia-Europe routes if demand shifts significantly. A key initiative over the past 18 months has been the "rationalization" between Seattle and Tacoma ports to better coordinate berths and scheduling. Another interesting development is NFI's acquisition of Cal Cartage, one of Southern California's largest drayage providers.
SCMR: Does this mean West Coast ports face unique infrastructure pressures?
Brendan McCahill: Infrastructure pressures have been building for years. Diverting some cargo through Mexican gateways using Kansas City Southern's intermodal services provides effective relief. The alliance between Tacoma and Seattle, along with Prince Rupert's continued growth in Canada, serves similar purposes.
- Rise of Mexican Gateways: Routing cargo through Mexican ports with KCS intermodal services offers alternative pathways, reduces port congestion, develops Mexico's logistics sector, and provides diversified supply chain options.
- Northwest Seaport Alliance: The Tacoma-Seattle partnership enhances efficiency through resource integration and operational coordination, optimizing berth allocation and reducing vessel wait times.
- Prince Rupert's Ascent: This Canadian port's strategic location and modern facilities attract growing cargo volumes, providing North America with additional supply chain options and risk diversification.
East Coast and Gulf Coast Ports: Infrastructure Focus Areas
SCMR: What infrastructure progress is occurring at East Coast and Gulf Coast ports?
Brendan McCahill: East Coast ports have been preparing for the new Panama locks since their announcement. New York/New Jersey raised the Bayonne Bridge's clearance rather than building anew, while conducting dredging. Savannah and Charleston continue crane upgrades and dredging with Army Corps cooperation. Miami built a tunnel to accelerate truck movement from terminals to I-95 without downtown congestion, plus dredging for deeper-draft vessels. Grupo México's recent acquisition of Florida East Coast Railway may create new opportunities, as FEC controls key routes from Miami to Jacksonville and major East Coast distribution hubs.
Key infrastructure upgrades include:
- New York/New Jersey: The East Coast's largest port upgraded to accommodate neo-Panamax vessels through bridge clearance increases and dredging while optimizing operations.
- Savannah and Charleston: These southeastern ports are rapidly expanding, upgrading equipment, and enhancing inland networks to handle growing volumes.
- Miami: The tunnel project and dredging improve connectivity to Latin America while reducing urban congestion.
- Florida East Coast Railway: Grupo México's acquisition may strengthen Florida ports' inland connections through FEC's extensive network.
Hurricane Preparedness and Response Strategies
SCMR: How are ports preparing for severe weather events after this year's destructive hurricanes?
Brendan McCahill: Ports recognize weather is uncontrollable. During major disruptions, critical actions include close collaboration with Customs and Border Protection to ensure documentation accuracy and prevent cargo entry delays from force majeure events.
Ports are implementing:
- Enhanced early warning systems
- Detailed emergency response plans
- Infrastructure hardening against natural disasters
- Strengthened coordination with border agencies
The Future of Port Infrastructure
SCMR: Any final insights on port infrastructure?
Brendan McCahill: All ports recognize the need to maximize existing space. They're stacking containers higher, relocating chassis pools from terminals, pursuing technological efficiencies, and collaborating with labor throughout this process.
Future trends include:
- Smart Ports: Increased adoption of IoT, big data, and AI to enhance operations
- Automation: Automated handling and transport systems to boost efficiency
- Sustainability: Clean energy adoption and emission reductions
- Collaboration: Deeper integration with other transportation modes
America's port infrastructure upgrades represent more than physical improvements—they're a competition redefining efficiency, resilience, and sustainability in global trade. Only ports embracing innovation and collaboration will thrive in tomorrow's trade landscape.