Economic cycles challenge every company as a normal part of business operations and supply chain fluctuations.
Port leaders must have a long-term vision, strategy and infrastructure investment plan regardless of short-term cargo volumes.
The question is this: Will you be building new port capacity when it’s needed, or will you have it ready when it’s needed?
Ports should enhance berths, container yards and inland connectivity now to take advantage of business opportunities in the future. By building capacity in advance and leveraging inland connectivity and major market access, ports such as Savannah and Brunswick are setting a business model for how the shipping industry can maintain momentum through economic cycles.
It is also a good time for cargo owners to examine supply chains’ true end-to-end transit time and cost.
A recent Georgia Tech research study found that Asia to Atlanta via West Coast port and rail routings compared with Asia to Atlanta via Savannah all-water routings were comparable in transit, but Savannah’s all-water routing was 32% cheaper, more predictable and consistent.
Global source shifting and diversification trends are creating business opportunities. The India era, with the largest population in the world, rising middle class, English language and democratic government is an example. Savannah’s proximity to India is closer than US West Coast routings, creating a future paradigm shift in gateway ports.