The Expert Opinion: While a Recession May Come, Forecast Remains Rosy for the Port of Savannah

Posted by Port City Logistics on Mar 17, 2023 9:28:29 AM

According to the Savannah Chamber of Commerce, in 2022, the Port of Savannah stood as the largest container terminal in the entire Western Hemisphere. Over 5.8 million TEUs passed through the ports, an increase of over 8% volume from the previous year. This whopping total, which represented almost 22% of all container trade along the U.S. East Coast, also equaled 12% of all U.S. containerized shipments in 2022. One of the largest Port of Savannah drayage providers that works the Savannah ports is Port City Logistics, handling over 90,000 containers in 2022 alone, or about 246 containers per day on average. 

There is some speculation, however, that a freight slowdown is on the horizon. Some reports indicate that U.S. manufacturers and their distributors are experiencing a glut of materials in their possession due to a slowdown in U.S. consumer spending compared to 2022. And there is some room for concern, as inventory rates have increased to levels that are consistent with previous years of manufacturing slowdowns that occurred in 2018, 2015, and 2008. But what does this all mean for the Port of Savannah? This article will take a look at some of the current conditions of the Savannah Port and offer some advice for shippers as they continue to utilize the port this year.

What are the Current Conditions of the Port of Savannah?

We already wrote about South Carolina’s Big Year, which dives a bit deeper into the dazzling growth that South Carolina’s ports are experiencing. And while the U.S. East Coast has seen exponential growth in terms of container volume, economic analysts at Fitch Ratings are suggesting that Georgia’s Port of Savannah will likely experience positive growth in 2023, while also expecting that a recession will likely happen in Spring 2023.

Despite fears of a freight recession, Emma Griffith, Fitch Ratings’ chief port analyst suggested that “even in a recessionary or tempered growth environment, a lot of that cargo still has to come through” the Port of Savannah. East Coast ports should fare better than their West Coast neighbors, signaling the lingering issues involving labor disputes with West Coast longshoremen.

In December 2022, The Port of Savannah announced plans for a $410 million expansion of current terminals to allow larger ships to dock and load and unload larger volumes of freight. This expansion is expected to allow a 50% increase in cargo volume by 2025.

How Can Shippers Navigate Uncertain Economic Conditions in the Port of Savannah?

Regardless of the economic forecast for 2023, ocean shippers find stability when they partner with a single source logistics provider to help manage every portion of their supply chain. There are certain advantages by utilizing this approach. Instead of coordinating with multiple third-party vendors that are siloed into servicing various tasks like drayage, warehousing, and OTR transportation, shippers use a single company experienced with every single aspect of logistics. Port City Logistics, for example, is a fully-integrated logistics provider that offers customers a range of services to support their unique operational requirements.

Port Drayage

In 2022, Port City Logistics handled over 90,000 containers from the Port of Savannah, demonstrating why they are considered the top provider for thousands of shippers who utilize East Coast ports. The unique advantages Port City Logistics has over other third-party drayage companies includes:

  • Company-owned and operated trucks
  • Company-owned equipment
  • Company-owned transloading facilities
  • Port-to-door and final mile service
  • Specialized transportation
  • TWIC-certified and bonded drivers
  • Secure stack yards
  • Drayage service to every major North American port

Transloading, Warehouse, and Distribution Service

Shippers who utilize the Port of Savannah look for transportation providers with their own brick and mortar warehouse and transload facilities. Port City Logistics owns and operates their own state-of-the-art warehouse facilities totaling 3 million square feet all strategically located just minutes from the Georgia Ports Authority. Each day, thousands of shippers depend on Port City Logistics and their facilities to transload, stage their supply chains for next steps, and warehouse extra inventory for when it’s needed most. Their facilities offer:

  • Best-in-class port proximity
  • Advantages of a Free Trade Zone & Customs Bonded Warehouse
  • Cross-Docks
  • Palletizing and Wrap Services
  • WMS Digital Inventory Management
  • EDI & Barcoding

Over the Road Transportation

Another key advantage shippers gain when partnering with a single source logistics provider is the ability to source dedicated capacity year-round. Port City Logistics is an asset-based provider with company-owned trucks, chassis, and equipment. Their dedicated drivers are fully bonded and hold TWIC cards, and are familiar with all the local intricacies found in the Port of Savannah. Small and large shippers alike depend on Port City Logistics, regardless if you need to pull a single pallet from a truck and expedite it in a sprinter van, or whether you need port-to-door service. Either way, Port City Logistics has you covered by providing customers with:

  • A fleet of assets for local and regional loads
  • FTL reefer, dry van, and flatbed service
  • LTL and partial
  • Specialized transport
  • Hazmat certified

Port of Savannah Shippers Prefer Port City Logistics

Since 2001, Port City Logistics has provided customers with dedicated solutions to handle some of the most complex and challenging logistics and supply chains. Their veteran team of logistics professionals are experienced to handle the unique operational requirements needed to handle your next shipment. There’s a reason why Port City Logistics is the preferred provider for the Port of Savannah, and the forecast will remain that way regardless if a recession slows down orders. For over twenty years, Port City Logistics has navigated economic uncertainty through their focus on service and execution.  Contact Port City Logistics today and find your perfect logistics fit.

Topics: Port of Savannah