Businesses dependent on ocean freight are facing shipping delays due to volatile conditions, as the global average trip for ocean shipments climbed to 68 days in the fourth quarter compared to 60 days for that same quarter a year ago, counting time elapsed from initial booking to clearing the gate at the final port, according to E2open.
Those extended transit times and booking delays are the ripple effects of ongoing turmoil at key ports that is being caused by geopolitical tensions, labor shortages, and port congestion, Dallas-based E2open said in its quarterly “Ocean Shipping Index” report.
The most significant contributor to the year-over-year (YoY) increase is actual transit time, alongside extraordinary volatility that has created a complex landscape for businesses dependent on ocean freight, the report found.
"Economic headwinds, geopolitical turbulence and uncertain trade routes are creating unprecedented disruptions within the ocean shipping industry. From continued Red Sea diversions to port congestion and labor unrest, businesses face a complex landscape of obstacles, all while grappling with possibility of new U.S. tariffs," Pawan Joshi, chief strategy officer (CSO) at e2open, said in a release. "We can expect these ongoing issues will be exacerbated by the Lunar New Year holiday, as businesses relying on Asian suppliers often rush to place orders, adding strain to their supply chains.”
Lunar New Year this year runs from January 29 to February 8, and often leads to supply chain disruptions as massive worker travel patterns across Asia leads to closed factories and reduced port capacity.
The new cranes are part of the latest upgrades to the Port of Savannah’s Ocean Terminal, which is currently in a renovation phase, although freight operations have continued throughout the work. Another one of those upgrades is a $29 million exit ramp running from the terminal directly to local highways, allowing trucks direct highway transit to Atlanta without any traffic lights until entering Atlanta. The ramp project is 60% complete and is designed with the local community in mind to keep container trucks off local neighborhood roads.
"The completion of this project in 2028 will enable Ocean Terminal to accommodate the largest vessels serving the U.S. East Coast," Ed McCarthy, Chief Operating Officer of Georgia Ports, said in a release. "Our goal is to ensure customers have the future berth capacity for their larger vessels’ first port of calls with the fastest U.S. inland connectivity to compete in world markets."
"We want our ocean carrier customers to see us as the port they can bring their ships and make up valuable time in their sailing schedule using our big ship berths. Our crane productivity and 24-hour rail transit to inland markets is industry-leading," Susan Gardner, Vice President of Operations at Georgia Ports, said.
Port Houston has awarded more than $1.1 billion to date in contracts with Small, Minority, and Women-Owned Business Enterprises (S/MWBEs), helping to fuel collaboration and to build economic wealth in its communities, the port said today.
According to Port Houston, its Business Equity Program provides resources, mentorship, and access to procurement opportunities, helping businesses thrive. That initiative has been driven by the collective impact of Port Houston’s Small Business Development Program, established in 2002, and its Minority and Women-Owned Business Enterprise (MWBE) Program, launched in 2021.
Those practices make a large economic impact, since Port Houston ranks as the nation’s fifth-largest container port by twenty-foot equivalent units (TEUs), handles 73% of U.S. Gulf Coast container traffic, is the largest port in the U.S. for waterborne tonnage thanks to its traffic in petroleum tankers, and generates nearly 20% of the state of Texas’ gross domestic product (GDP) by revenue.
However, the announcement comes in the context of rising tensions between federal contractors and many of the businesses that provide the services they need. Port Houston’s press release came out just days after the new Trump Administration announced policies to end diversity, equity, and inclusion (DEI) practices in federal agencies. Trump made that policy change in a January 20 executive order titled “Ending Radical and Wasteful Government DEI Programs and Preferencing” and in a January 22 statement titled “Fact Sheet: President Donald J. Trump protects civil rights and merit-based opportunity by ending illegal DEI.”
Although it revealed a philosophical gulf between the executive branch and a major player in U.S. private industry, the port’s announcement focused solely on the economic value of its practices. “This monumental milestone represents more than just dollars awarded—it’s a testament to Port Houston’s dedication to supporting jobs and creating opportunities for small and diverse businesses,” Charlie Jenkins, CEO at Port Houston, said in a release. “These programs are designed to build capacity, foster inclusivity, and empower businesses to succeed and grow.”
Likewise, the port said its contracting practices were the fruit of years of strategic planning and collaborative efforts across the organization. “Our commitment to expanding opportunities for S/MWBEs remains steadfast,” Carlecia Wright, Port Houston’s Chief Business Equity Officer, said. “In 2024 alone, we awarded $181.1 million to S/MWBEs, building on more than two decades of commitment to economic opportunity. We are proud to continue driving equitable outcomes and ensuring that Port Houston remains a vital economic engine for businesses of all sizes and backgrounds.”
Among the flurry of orders he issued in the hours after his inauguration, incoming President Trump has named new leaders for two critical federal agencies overseeing transportation and freight flows.
In a statement, rail industry group the Association of American Railroads (AAR) applauded the appointment. “Chairman Fuchs has proven to be a thoughtful, solutions-oriented leader who lets data drive the decision-making process,” AAR President and CEO Ian Jefferies said in a release. “Throughout his career, he has been committed to maintaining the balanced regulatory framework that allows railroads to invest while also offering appropriate remedies for rail customers. America’s railroads look forward to working with him as we advance our shared goal of a thriving, vibrant rail network that helps businesses and our economy continue to grow.”
Container traffic is finally back to typical levels at the port of Montreal, two months after dockworkers returned to work following a strike, port officials said Thursday.
Today that arbitration continues as the two sides work to forge a new contract. And port leaders with the Maritime Employers Association (MEA) are reminding workers represented by the Canadian Union of Public Employees (CUPE) that the CIRB decision “rules out any pressure tactics affecting operations until the next collective agreement expires.”
The Port of Montreal alone said it had to manage a backlog of about 13,350 twenty-foot equivalent units (TEUs) on the ground, as well as 28,000 feet of freight cars headed for export.
Port leaders this week said they had now completed that task. “Two months after operations fully resumed at the Port of Montreal, as directed by the Canada Industrial Relations Board, the Montreal Port Authority (MPA) is pleased to announce that all port activities are now completely back to normal. Both the impact of the labour dispute and the subsequent resumption of activities required concerted efforts on the part of all port partners to get things back to normal as quickly as possible, even over the holiday season,” the port said in a release.
According to AAPA, the policies are necessary to revitalize America’s ports, keep America safe and secure, and unleash sustainable economic growth. The announcement comes shortly after the 119th Congress began its 2025 session on January 3, and just days before the January 20 inauguration of Donald Trump for a second term as president.
One notable item on the list is opposition to the steep new trade tariffs that Trump has proposed. The U.S. business community—including maritime port operators—has broadly opposed increased tariffs, saying they will increase the cost of goods and manufacturing, raise prices for consumers, and trigger increased inflation.
In AAPA’s words, its policy agenda includes:
reauthorizing oversubscribed mainstay infrastructure grant programs;
ensuring timely passage of navigation channel funding;
opposing tariffs that hurt consumers and stifle growth;
reforming burdensome federal permitting;
pushing back against and educating stakeholders on the harmful effects of vessel speed restrictions;
empowering ports to power America with an all of the above energy strategy;
securing our ports and their assets from potential threats with the necessary resources and personnel; and
expediting “Build America Buy America” waivers and incentivizing domestic manufacturing of ship-to-shore cranes.
In support of those ideas, AAPA staff have already begun meeting with members of congress and industry to advocate for the priorities. And AAPA’s president & CEO, Cary Davis, and John Bressler, its VP of government relations, have met with President-elect Trump’s transition team, as well as with U.S. Department of Transportation Secretary nominee Sean Duffy’s team.
“There’s no such thing as a strong America without strong ports,” Davis said in a release. “America’s ports are key to the nation’s economic health and global competitiveness. As trade and cargo volumes continue to grow, our nation’s ports must continue working with the Federal Government to invest in and build the next generation of port infrastructure so we can deliver for America.”