Savannah Sets September Record as Ocean Rates Peak

The Port of Savannah handled a record number of containers in September, adding to signs that US import demand is holding up even as ocean freight rates come off their highs.

The Georgia Ports Authority said Savannah moved 504,015 twenty-foot equivalent units (TEUs) last month, up 3.7% from a year earlier and its busiest September on record. Loaded imports rose 5.5%. Volume for the authority's fiscal first quarter topped 1.5 million TEUs, the second-strongest start to a year in its history.

"We are providing world-class service to our customers while handling record volumes," said Chief Executive Griff Lynch.

Investment Paying Off

Savannah is midway through a USD 1.6 billion redevelopment of its Ocean Terminal, which is now more than 60% complete. Once finished, it will lift the terminal's annual capacity from about 200,000 TEUs to 1.75 million. The authority plans to invest nearly USD 5 billion over the next decade.

Rates Turn

The strong volumes come as container rates appear to have peaked. Spot rates from the Far East to the US East Coast stood at USD 11,523 per forty-foot container on October 1, according to Xeneta. That's more than four times their level before the Strait of Hormuz crisis began in late February.

Xeneta Chief Analyst Peter Sand said the market has passed its "post-Hormuz crisis peak", as congestion in Asia eases and China's Golden Week holiday cools exports. He expects East Coast rates to ease to around USD 6,000 to 7,000 over the next three months, but not to collapse.

More Relief Ahead

There's more help on the way for East Coast cargo. From October 15, the Panama Canal will restore up to 10 daily transits for its largest neopanamax vessels, bringing total daily crossings to 33.

For shippers, that points to a steadier end to the year, though analysts warn that any fresh geopolitical shock could quickly change the picture.