Shipments at Port of Halifax Remain Strong
HALIFAX — Despite facing global economic uncertainty heading into 2023, thanks to worldwide inflation and high interest rates, cargo volume at the Port of Halifax remained stable in the first quarter of the year. Imports and exports totaled 127,334 TEU (twenty-foot equivalent units), 0.7 per cent higher than the first quarter of 2022.
Total metric tonnes of containers shipped through the port surpassed one million and was 4.6 per cent higher than last first quarter of last year. But TEUs remain the most accurate measurement of total volume coming in and out of the port.
“No doubt one of the things we were watching for was softening in the first quarter this year just because of the different global conditions and factors that are out there,” said Lane Farguson, a Port spokesperson. “So, to be on par with where we were last year is a fairly solid outcome. And to that I would credit, the operations, as well as all the other port partners.”
Another challenge facing ports worldwide was lower demand of imported goods, following a flurry of activity during the pandemic for certain products.
“High interest rates are challenging right now and so is inflation. There’s been talk of recession. As a result, we are seeing less demand for goods.”
“Also, early in the pandemic there was a huge demand for imported goods from Southeast Asia and other manufacturing centers in the world. Those goods, eventually, all got here and we’re stuck in distribution centers trying to get out to where they were supposed go. At the same time, demand is falling off. So, it’s just been a real interesting couple of years.”
Given the level of uncertainty, Farguson is remaining mum with any predictions for how quarter two is shaping up.
“Because of that uncertainty, we’re not going to be making any predictions on where we’re going for the next quarter or even how the year is going to wind up,” he said. “But what I can say is that we’ll continue to work with all of our port partners just to keep on pushing Halifax as being that Atlantic gateway that can get their goods from one part of the world to other in a very efficient way.”
Over the last decade, the Port of Halifax has gone through some major changes to accommodate an ever-changing container-shipment world. Vessels are getting larger and, to remain competitive, a port must be able to accommodate the behemoths.
“When I first got here the port was handling ships in the 5,000 to 6,000 TEU range. So that’s 2013, give or take. Those were sort of the workhorse vessels that were calling at that time.”
As usual, it was global factors that changed the size of the vessels. In 2015, an additional lane opened in the Suez Canal. The following year, the Panama Canal was expanded, allowing for bigger ships once again.
One of the biggest changes to affect global shipping was the raising of the Bayonne Bridge in New York by 64 feet.
“It was at that time that we saw a bump up again in the size of ships calling on Halifax. That got us into the 10,000-plus TEU range,” said Farguson. “And the reason the bridge raising was so important was because suddenly, those bigger ships could get into more harbors in New York. As soon as that opened, the shipping lines started to deploy larger vessels onto the East Coast trade routes. And they’re just bigger and bigger ever since.”
The Port of Halifax completed a major project in 2020 to accommodate there worldwide changes in shipping. An extension to the south end terminal provided 800 metres of berth length and 16 and a half metres of depth.
“That’s enough birth length to accommodate one giant ship of those ultra class vessels and one smaller one as well,” said Farguson.
On April 26, the ONE Stork, a 14,000 TEU vessel arrived at the Port of Halifax. The Port released a statement explaining how they can welcome such ultra-large shipping vessels.
“PSA Halifax Atlantic Hub terminal features the longest and deepest berth of any Canadian port in Eastern Canada, with a continuous quay length of 800 metres at a depth of 16.5 metres, terminal area of 32 hectares,” it read.
The Port of Halifax is a major driven of the municipal and provincial economy. In 2022, the port provided $4.87 billion to the Nova Scotia economy. It also provides more than 25,000 jobs.
Derek Montague is a Huddle reporter in Halifax. Send him your feedback and story ideas: [email protected].