(March 25, 2024) -- CBRE reports that cargo containers increased in Q4 but were down year-over-year. Q4 2023 cargo container volume at the 14 major North American ports tracked by CBRE increased by 1.6% year-over-year. However, full-year 2023 20-foot equivalent unit (TEU) volume fell by 12% year-over-year from record highs in 2022. This drop was more notable at East Coast ports (-15%) than at West Coast ports (-10.8%).
Severe drought reduced Panama Canal traffic
The Panama Canal’s water levels fell dramatically, forcing authorities to reduce vessel traffic from 38 ships to 24 per day. This has delayed deliveries and increased shipping costs. Longer sea routes or land-based transportation could impact industrial space demand, especially in East and Gulf Coast markets.
U.S. to invest billions into port infrastructure
The U.S. federal government plans to invest over $20 billion in port infrastructure over five years. It aims to bolster the competitiveness and security of U.S. ports, modernize aging facilities, and strengthen domestic manufacturing capabilities. This includes onshoring port crane production.
Q4 Cargo Container Volumes
- Container volume is returning to pre-pandemic levels at most major ports after 2022’s record highs when producers sharply increased inventory to meet strong consumer demand.
- Manzanillo, Mexico, was the only port with a year-over-year increase in container volume (6.5%) in 2023. This port benefited from the near-shoring of manufacturing operations, with TEUs rising to a record 3.7 million in 2023.
- Canada’s Prince Rupert Port had the largest year-over-year drop in inbound TEU volume–down 32% in 2023.
