North American Container Port Capacity: An Exploratory Analysis

This article investigates the current and forecasted disconnect in the utilization capacity of major ports with the actual volume of those ports. The research presented suggests that ports should plan for extensive capacity increases, as a number of capacity drivers are accelerating at a rate that ports and other stakeholders cannot match. The authors suggest that port capacity issues that must be handled include factors such as terminal and berth space. However, other primary factors such as local rail, road, and truck capacity, long-shore labor costs and efficiency are ignored in terms of volume as these factors appear to be beyond port control. Since this research methodology is mostly aimed at port authorities and their possible control as an element in the overall transportation network, the authors also suggest that it would be possible to repeat this research but taking into account other stakeholders of this network, such as longshore labor unions, railroads, motor carriers, shippers, and the government. As container volume has been increasing annually at a rate of 7 percent, the total volume experienced by stakeholders will double in the next decade. The article calls for an in-kind volume response by port authorities to accommodate for such an increase in solutions, such as productivity enhancements, physical expansion, and off-site solutions.