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Obstacle Course

Port Freeport
Port Freeport

(Article originally published in Sept/Oct 2026 edition.)

The unpredictable implementation of tariffs and the ongoing conflict between the U.S. and Iran have changed the state of the global economy and affected everything from the price of gasoline at the pump to the cost of a new car. Trade patterns for international shippers and the negative impacts of these issues have been felt at American seaports. However, it's not all doom and gloom, and ports have demonstrated resilience in navigating the geopolitical obstacle course.

Port of the Future

The Port of Long Beach, for example, is moving forward with an ambitious multibillion dollar plan to build the "Port of the Future." The key to its dream of a major intermodal development is a tried-and-true one – the railway.

"To build the Port of the Future and double our annual cargo volumes to 20 million containers by 2050," says Dr. Noel Hacegaba, CEO of the Port of Long Beach, "rail must be part of the conversation. We're coming off a record 2025 with 9.9 million TEUs (20-foot equivalent units), and in August we handled 920,000 TEUs. That's our busiest August ever and the fifth busiest month in the port's 150-year history."

But to double cargo volumes, rail must play a dominant role since it would take too long and cost too much to double the port's real estate. "That means we have to densify, electrify and modernize," Hacegaba explains. "The Port of the Future has to be faster, reliable and zero emissions, so we're making a strategic decision to push more intermodal rail moves."

Currently, about 30 percent of containers arriving at Long Beach leave directly on rail, but in order to double volumes that number needs to increase. Over the next 10 years, the port is expected to undertake the largest capital expenditure program of any port in North America, totaling $3.3 billion. At the heart of that is the Pier B on-dock rail support facility, a $1.8 billion investment. The Pier B project will double the size of the existing rail yard from 82 acres to 171 acres.

"Another reason this is important is the trade disruptions that have been driven by trade policy and shifting tariffs," Hacegaba adds, noting that where shippers source there cargo is changing. "For example, in 2019 China accounted for 70 percent of our business. That 70 percent is now down to 55 percent with more now coming from Southeast Asia and, in particular, Vietnam."

Tariffs on Chinese imports into the U.S. are approximately 23 percent while from Vietnam and globally, they're approximately seven percent.

"On average, it takes two-to-three days longer for a container to arrive in Long Beach from Southeast Asia compared to China," Hacegaba says. "Our Pier B project will help us make up that difference." It's also expected to reduce on-dock container dwell times from four days to 24 hours.

Economic Engine

At PortMiami, container cargo makes a significant contribution to the state economy.

For the past 11 years, Miami has handled over a million TEUs annually, and although there was a slight drop earlier this year, Port Director & CEO Jonathan Daniels anticipates stronger growth in the second half.

"In the third quarter we saw a little rebound with nearly a three percent increase year-over-year," he adds. He expects the port to be in the 1.5 million TEU range for this fiscal year.

Daniels believes trade instability caused by uncertain tariff patterns and the Iran conflict have contributed to the slight stumble. He noted the series of disruptions on a global basis that tariffs are having and cited the higher fuel costs that have played into a significant increase in container box rates coming from the Far East.

"Since February of this year," he said, "we're looking at about a 305 percent increase and a box rate to the U.S. East Coast now in excess of $10,000."

Prior to the tariffs, "Everybody was trying to get product into the U.S. as quickly as possible," Daniels explains, "but we don't have that protection right now. Manufacturers just don't know what the next level of tariffs is going to be, and that ultimately impacts trade flow."

Fortunately for Miami, perishable goods are nearly 50 percent of the cargo arriving from Latin America and the Caribbean and approximately 32 percent from Asia and the Indian subcontinent. He highlighted India's cargo growth, noting, "India is our third largest trading partner and we continue to be strong out of the Far East and Latin America."

Investments made by the port and its terminal operators to accommodate more perishable cargo bode well for the future. Miami is also a large consumption zone port, so continued population increases mean additional incremental growth.

With the port located on Dodge Island, future expansion means moving to the mainland. That would include the potential development of an inland port complex. An announcement is expected in the near future.

Double-Stacked

Despite the geopolitical turmoil, the Port of Baltimore is having a good year in containers, notes Richard Scher, Director of Communications, Maryland Port Administration: "We recently had one of our best weeks ever, handling 19,879 containers from August 16-22, second to the week of March 9 this year when we handled 20,119 TEUs. Our containers are now tracking at nearly the same rate as our record year in 2025 when we finished with more than 1.1 million TEUs."

Earlier this year Baltimore made a significant advance in its container business when it began operation of double-stacked containers on rail.

"With double-stack capabilities, Baltimore, as the furthest inland U.S. port, becomes the quickest and most efficient route to the Chicago and Midwest markets," Scher says. "It will increase Baltimore's competitiveness in the containerized shipping market. In addition to its geographic advantage, the port's local Baltimore-Washington DC-Northern Virginia consumer market is the third largest in the nation and further supports Baltimore's importance in the container market."

An additional boost comes from Ports America Chesapeake, which operates Baltimore's Seagirt container terminal and is investing nearly $700 million in physical, technological and software upgrades.

Further expansion began when Tradepoint Atlantic and Terminal Investment Limited (MSC) broke ground on the new 168-acre Sparrows Point Container Terminal. The terminal will accommodate one million containers annually, two ultra-large ships simultaneously and be equipped with seven ship-to-shore cranes.

It will help Baltimore jump from the sixth-largest container port on the East Coast to third.

Steady As She Goes

The majority of cargo at Florida's Port Everglades is linked to Latin America and the Caribbean with less than two percent from China, so it's insulated – but not immune – from tariff impacts. The port therefore anticipates cargo movements will remain steady with the addition of a new East-West service line, says CEO & Port Director Joseph Morris.

In 2025, Everglades marked a record fiscal year in its three main categories of cargo, cruise and energy. "We had a record 1,167,552 TEUs last year," Morris noted. "This was a first for Port Everglades and underscores its role as one of the most diversified and fiscally strong seaports in the U.S."

In July, the port gained a direct East-West connection to Asia with the Mediterranean Shipping Company's (MSC) Empire Service.

Everglades' performance has notched some notable rankings globally on the North-South trade lane. In the most recent S&P Global Market Intelligence's World Bank Container Port Performance Index, the port's operational efficiency is in the top 25 percent worldwide and is ranked as the #2 U.S. port in Latin America trade. The port handled approximately 12.5 percent of total U.S. trade with that region.

In the Caribbean, Everglades is the top U.S. port, handling approximately 25 percent of total U.S.-Caribbean cargo. In Central America, Everglades is the #1 U.S. port, handling approximately 11 percent of total U.S.-Central America cargo.

Year-Over-Year Growth

On Florida's Gulf Coast, Port Tampa Bay improved its ability to handle up to a million TEUs annually with the addition of two new, ship-to-shore, post-Panamax cranes, enabling the port to service up to three large container vessels simultaneously.

Last year Tampa Bay handled 263,000 TEUs. In comparing 2025 with 2026 (January-July only), Port Tampa Bay saw a 13 percent increase in container cargo and is on track for another record-breaking year.

"We're seeing year-over-year growth," says port President & CEO Paul Anderson. "Any impacts from tariffs or geopolitical conflicts would be felt first by shippers with potential downstream effects on the port. At this point, however, the numbers reflect continued strength across our container cargo operations."

Going Deep

In Texas, Port Freeport has gone deep.

The port has dredged its harbor channel and is now the deepest port on the Gulf of America with depths ranging from 51 to 56 feet MLLW (mean lower low water) level and 51 feet MLLW at the Velasco Container Terminal, says Jason Miura, Director, Business & Economic Development.

The terminal presently can handle 500,000 TEUs. Port Freeport plans to begin construction on the next portion of the Velasco Terminal Improvement Project next year, which involves paving an additional 10 acres of the container terminal and is backed by an $11 million Port Infrastructure Development Program (PIDP) grant awarded by the U.S. Maritime Administration.

Recently, the port was awarded a $33 million construction contract for Cross-Dock #2. That project will be an 85,000-square-foot, multi-temperature cold storage warehouse with a new U.S. CBP Agricultural Inspection Center.

In the fourth quarter of this year, Freeport expects the start of a new weekly liner service that will deliver more refrigerated cargo.

Ports columnist Tom Peters writes from Halifax, Nova Scotia.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.