Current Conditions

In the late 2000s, the global economic downturn led to reduced cargo volume at U.S. ports. Moreover, "The Great Recession of 2008-2009 caused container volumes at the world's ports to decline for the first time ever," Peter T. Leach wrote in The Journal of Commerce in August 2010. The downturn resulted in global container volumes falling from 524 million TEUs in 2008 to 473 million TEUs.

Despite significant declines in container cargo along the West Coast during the first 10 months of 2009, combined November and December volume increased at the ports of Los Angeles and Long Beach by 27 percent compared to 2008. Northern California ports also reported cargo volume down by 10.9 percent for the year. After more than two years, the port of Los Angeles saw cargo volume reach double-digits to 23.9 percent in August.

According to the Global Port Tracker report, compiled by consulting firm Hackett Associates for the National Retail Federation the first half of 2010 totaled 6.9 million TEUs, up 17 percent year over year. By the time 2010 comes to a close, the total cargo shipment volume was estimated to reach 14.6 million TEUs an increase of 17 percent over 12.5 million TEUs in 2009. Still, well below the 15.2 million TEUs that arrived at U.S. ports in 2008 and the peak of 15.5 million TEUs in 2007.

The Drewey Shipping Consultants' port sector report, Annual Review of Global Container Terminal Operators 2010, warned of possible port congestion, in particular, the Far East and Middle East regions as container volume rises year over year between 2010 and 2015. While not in the double- digits the industry experienced in the early 2000s, global container port volume was projected to increase 7.2 percent annually between 2009 and 2015 reaching 718 million TEUs.

Industry Leaders

In the late 2000s, one of the leading marine terminal operators was Seattle, Washington-based SSA Marine (formerly Stevedoring Services of America). With roots stretching all the way back to the late 1800s, the company's present owners became involved with the company in 1949, when the Bellingham Stevedoring Company was founded. Over the years SSA has grown by acquiring other terminal operators, including Ryan-Walsh, Inc. Ryan-Walsh became well known throughout the maritime industry as a bulk cargo and container handling company. It was a subsidiary of Pittsburgh-based Vectura Group, Inc., a holding company that also owned National Marine, Inc., a barge transportation company based in New Orleans. In 2004, SSA had estimated annual sales of more than $1.2 billion. It grew from some 10,000 employees in 2004 to 13,000 in 2007. In addition to having a presence in all of the United States' major coastal shipping zones, SSA was involved in river operations and rail management. In addition, it operated abroad via some 150 international operations.

International Terminal Operating Company, Inc. (ITO) was founded in 1921 by Captain Franz Jarka. Originally called The Jarka Corporation, the company specialized in handling freight and passengers in the Port of New York. Soon, The Jarka Corporation expanded its services to encompass the ports of Boston, Philadelphia, Baltimore, and Hampton Roads, Virginia. In 1962, ITO was acquired by Ogden Corporation. In 1983, the company merged with John W. McGrath Corporation, which included Atlantic and Gulf Stevedores, Inc. and integrated their North Atlantic and Gulf Coast operations. Ogden and McGrath continued to share ownership of ITO.

ITO opened its first public container handling facility in 1967, and it was among the first to utilize computers in its terminal operations. The company used the latest technology to coordinate all its port activities, including receiving and delivery functions, cargo documentation, and terminal security. ITO worked with many of the largest container, break-bulk, and specialized cargo carriers in the world and became one of the largest stevedores and marine terminal operators in the United States. In 1999 the United Kingdom-based Peninsular and Oriental Steam Navigation Co. (P&O) acquired ITO. The company then became part of P&O Ports, one of P&O's many subsidiaries. P&O Port's operations spanned 18 countries around the globe. In all, P&O Ports ran 27 container terminals in over 100 ports, making it the world's largest port operator.

SSA Marine has established a global network with 150 operations worldwide, handling about 22 million containers twenty-foot equivalent units (TEU) annually. From a reported 13,000 employees in 2007, the company shed 3,000 employees between 2007 and 2009 as demand dwindled for container handlers. In 2007, SSA had estimated annual sales of more than $1.6 billion.