Charleston posts double-digit box gain for quarter

Port officials say a new consolidated South America service could further add to container business.    The Port of Charleston maintained its growth momentum in the first three months of fiscal year 2015, with container volume up 13 percent from the same period a year ago, according to the South Carolina Ports Authority.  
   Meanwhile, a newly reformatted, multi-carrier liner service between the U.S. and South American east coasts could bring even more container business, officials say.
   On Monday, Hamburg Sud’s 5,500-TEU Monte Rosa docked at the Wando Welch Terminal, marking the first ship call of a new consolidated service that will bring bigger ships to Charleston.
   As previously reported, Hamburg Süd/Alianca, Hapag-Lloyd, CSAV and NYK last month announced a vessel-sharing agreement to jointly operate the weekly “New Tango” service. Instead of the carriers operating on two strings, they are using a single string with seven 5,500-TEU vessels featuring increased reefer capacity.
   CSAV, which has operated on the U.S. East Coast for years, is essentially upgrading service by increasing capacity while dropping participation in the Tango Sling 2 on MSC’s Parana Service.   
   According to their filing with the Federal Maritime Commission, four ships will be provided by Hamburg Süd and Alianca; two by Hapag-Lloyd and CSAV, which are in the process of merging; and one by NYK. Taiwanese carrier Yang Ming could also participate as a slot purchaser. Yang Ming will title the service the East Coast/South America Xpress (ESX), and NYK will call it the Atlantic North South Express (ANSX). Each of the seven ships will have nominal capacity of 5,500 TEUs, but the agreement allows the number of ships to vary from five to nine, and capacity to fluctuate between 4,500 TEUs and 7,000 TEUs.
   The rotation is New York, Philadelphia, Norfolk, Charleston, Jacksonville, Port Everglades, Suape, Santos, Buenos Aires, Rio Grande, Porto Itapoa, Santos, Rio de Janeiro, Salvador, Pecem, and New York.   
   The service change from Panamax to post-Panamax vessels will increase total capacity by 16 percent, from 31,127 TEUs to 36,233 TEUs, according to American Shipper analytics affiliate BlueWater Reporting.
   Common cargoes on the route to Brazil, Argentina and Uruguay include tires and auto parts, agricultural commodities, food products, forest products, manufacturing components and beverages.
   During September, Charleston handled 150,790 TEUs, 13.4-percent more standard shipping units than in 2013. Month-over-month volume fell 8 percent from August.  
   Container traffic is up 11.5 percent over 2013 levels on a calendar-year basis and 10.3 percent ahead of the fiscal year plan, the port authority said last week.
   In August, the Port of Charleston achieved its highest container volume since March 2007, moving more than 93,000 pier containers. It’s an important metric because the port gets paid by the box move, regardless of whether it is a 20-foot or 40-foot unit.  
   On Aug. 29, the port recorded 5,000 gate moves by trucks and 6,500 vessel moves by crane, with all 17 ship-to-shore cranes working and all labor orders filled by the International Longshoremen’s Association.  
   Charleston also handled 65,214 pier tons of breakbulk cargo in September and 199,219 tons during the quarter. The Port of Georgetown experienced a 38.7-percent increase in breakbulk tonnage above budget projections. The port authority said a greater number of automobile exports contributed to the breakbulk gains.  
   Beating volume forecasts translates into higher revenue and earnings for the port authority, which made a $14.3 million profit in fiscal year 2014.   
   Meanwhile, the SCPA board at its monthly meeting authorized a contract for BergerABAM to complete a design review of the engineering plans for the Wando Welch Terminal wharf improvement project, which is scheduled to begin late next spring and last about 2.5 years.  
   Wando Welch is the largest terminal in Charleston. The U.S. Department of Transportation last month awarded a $10.8 million grant to SCPA for the project, which includes strengthening the piers to safely secure 10,000-TEU to 14,000-TEU vessels.
   Earlier this month, the U.S. Army Corps of Engineers released tentative plans to dredge Charleston’s main navigation channel to 52 feet to accommodate super-size container vessels now being deployed. The Army Corps is accepting public comments on its feasibility study through Nov. 24, and SCPA officials say they hope businesses that rely on international trade will voice their opinion about the importance of having 24/7 water access for big ships.  
   (Read a detailed analysis about the SCPA’s strategic plan for Charleston and how its cargo business is diversifying in the November magazine feature “S.C. Ports Authority aims high.” Also, watch a video blog about Charleston.)