MARKET BRIEF | October 2023
New York-New Jersey Planning to Handle More Ultra-Large Ships by 2025
The Ports of New York and New Jersey are working to increase the number of cranes capable of handling the world’s largest container ships. With vessels getting bigger, ports along the East Coast need higher-capacity cranes to efficiently load and unload cargo. The ports currently have seven cranes that can handle ultra-large vessels carrying over 18,000 containers. To stay competitive, they plan to raise that number to 15 by 2026. This $700 million project involves purchasing new super post-Panamax cranes and reinforcing existing infrastructure to support them. By boosting crane capacity, the ports aim to accommodate more mega-ships and strengthen their position as the largest port complex on the East Coast.
Georgia Ports Authority Seeks Dredging Project in Savannah
The Georgia Ports Authority (GPA) wants to deepen the Savannah River shipping channel as part of their Savannah Harbor Expansion Project (SHEP). The GPA is planning a permanent deepening of the channel to about 52 feet, which would be a five-foot increase. This would enable the Port of Savannah to accommodate larger container ships, with an increased capacity of up to 22,000 twenty-foot equivalent units (TEUs), up from its current limit of 16,000 TEUs. The deepening of the river channel is expected to enhance the port’s competitiveness and its role in international trade. This move will put the Port of Savannah on par with other major Southeast ports, such as Charleston (which dredged Charleston Harbor to 52 feet in 2022) and the Norfolk (which is on track to reach a depth of 55 feet next year). This particular component of the SHEP would take around 10 years to complete.
California Disputes AB5’s Effect on Trucking
The State of California argues that, despite requests for a new injunction blocking their independent contractor law AB5, the law is not having a significant negative impact on the trucking sector. They contend that there is no evidence that AB5 has substantially disrupted the industry or supply chains, and that the independent contractor model leads to exploitation of drivers. California asserts that AB5 protects misclassified workers, and any issues in implementing the law can be addressed without fully blocking it. They say the trucking associations have failed to demonstrate irreparable harm that would justify a broad injunction against enforcement of this state law.
