October 12, 2023

Port Everglades Cargo Volume Declines For Six Consecutive Months (March to August 2023)

The latest update on Port Everglades cargo volume is a dip of 14% as of August. There was no significant change in cargo volume in September. According to reports, the Port Everglades cargo volume has been on a downtrend for the past six months, and Jonathan Daniels the port CEO spoke concerning the situation.

He said- The crash in cargo volume could be because Port Everglades cargo traffic is returning to the pre-Covid levels. 

A Look At The Port Everglades Pre-Covid Levels

As it is well known, Port Everglades ranks as one of America’s busiest ports located in Fort Lauderdale, Florida. It is a major trade gateway between the United States and the rest of the world. Port activities are pretty high and boast an average of 5 million tonnage per year. 

In 2017, Port Everglades recorded a total annual TEU of 1,076,912 and tonnage of 7,226,433.  Over 20, 000 increase in TEU and 100,000 increase in tonnage was recorded in 2018. The year 2019, was a little off the mark as both TEU and tonnage dropped compared to 2018. A 1,053,078 TEU and 6,797,694 were recorded in 2019. The year 2020, was a full-blown Covid-19 pandemic. With the global lockdown, there was a significant drop in Port Everglade’s TEU and tonnage. The number recorded was 945,512 TEU and 5,707,528 tonnage.

In the year 2022, the post-Covid era experienced a resurgence of cargo volume with 1,053,078 TEU and 7.3 million tonnage. This forms the basis of Jonathan Daniel’s claim that the post-Covid surge will trigger an improved level of cargo volumes. 

A Look At Some Possible Factors Leading to the Decline of Port Everglades Cargo Volume

In the words of Jonathan Daniel “In general, the bump in volumes can be attributed to Port Everglades’ cargo traffic returning to pre-Covid levels” This is a general perspective of the situation. However, some factors trigger the decline in cargo volume. 

The change in consumer behavior can boost or reduce the port’s cargo traffic. A shift in consumer behavior is a pretty wide scope as it can involve a change in consumer preferences within a period. This triggers the forces of demand and supply for a range of products which in turn influence cargo influx in and out of the port. 

The change in consumer preferences can see a reduction in imports, hence reducing cargo volumes into the port. Consumer preferences for locally made products also take a toll on port cargo volume, as goods are manufactured very close to the consumers, eradicating the shipping phase. 

Inflation is another factor that influences the port’s cargo volume. The surge in commodity and material prices takes a toll on both businesses and consumers. Inflation lowers the spending power of consumers and they tend to spend on more vital commodities. This kills off the buying activities of some other items considered as less important. 

Inflation also disrupts business activities as small-scale to medium-scale businesses may opt to cut down on the volume of goods processed along their supply chain. The reduced activities by businesses and the lower purchasing power will reduce the level of imports into a region. Cargo volume is a function of both imports and exports, hence when one side suffers, the entire volume will decline. 

Shipping delays can also have an adverse impact on cargo volume. The port is a two-way gateway as it receives goods (imports) and sends out goods(exports). As a result, it is somewhat dependent on the state of other ports within the trade lane. This network forms the supply chain and a disruption such as shipping delays can cause a reduction in cargo volume within a time range. 

Possible Effects of Port Everglades Dip in Cargo Volume

Port Everglades is a vital supply chain infrastructure as it is popularly known as Florida’s important economic hub. It is an established gateway for international trade. It is responsible for over 10% of trade between the United States and Latin America. 

Although Port Everglades isn’t the only formidable port in the United States, its low performance by virtue of reduced cargo level will have an impact on the US markets and industries. This tends to affect business operations as imports may be on the low side. As a result, there could be limited availability of several products for the end consumers. 

It is believed that Port Everglades will in no time take the step of recovery and experience a much-improved cargo volume level. 

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