The Georgia Ports Authority announced this week that the Port of Savannah saw a 21 percent increase in exports in January. The numbers are an increase of more than 10 percent compared to January of 2020, the last full month before pandemic impact.
January trade overall at the Port of Savannah was 421,714 TEUs (twenty-footy equivalent container units – think the back of a tractor-trailer), compared to 377,671 in January 2020.
“We’re excited to support a strong month for American farms and factories at the Port of Savannah,” said Griff Lynch, executive director of the Georgia Ports Authority. “We achieved particularly robust growth last month in export trade lanes to Europe and the Mediterranean.”
However, including imports paints a more mixed picture. Total cargo was actually down 11.5 percent compared to January of 2022, driven primarily by a 16 percent drop in imports. That drop in imports is a double hit of sorts for the country’s ports – normally, some of the empty containers might be shipped back to Asia for refilling with goods bound back here, but now any containers not filled with exports have to find a home until they can be refilled. In January, the Port of Savannah had to find space to store 34,650 containers.
These export/import numbers can be an interesting economic indicator. The drop in our imports may be multifaceted, both from a drop in demand overall but also because inventories that had been long depleted due to the pandemic are now filling up. Unfortunately for many American importers, last year’s shipping costs were among the highest ever and though now shipping prices have dropped significantly, their inventories are already full. Many American companies may be seeing strong revenue but their expenses last year were well past what was expected when outlays were projected in late 2021 or early 2022.
There were also weather-related problems that saw a delay of six vessels that were supposed to land in Savannah in January but were unable to until February. In the meantime, a project to expand the Garden City Terminal is now 80 percent complete. The increased capacity will total 1.5 million TEUs when the project is finished in July.
“Being prepared to take advantage of opportunities as they arise requires steady leadership and an eye toward long-term trends,” Wooten said. “Our board’s commitment to constant infrastructure improvement, even during down times, means our customers have a ready partner in growth when they need to expand their Georgia operations.”
Another item to note on the export front: The announcement earlier this month that India would drop pecan tariffs by 70 percent could see a boom for Georgia farmers. Georgia grows twice as many peanuts as any other state – 142 million pounds compared to 77 million for number two New Mexico – so the announcement from India is very Georgia-centric and should serve Georgia farmers, and all those that ship their products, quite well.
