Georgia ports see record growth; tariffs could hurt in 2020

 

SAVANNAH — Georgia’s busy seaports announced another year of record growth last week, though their chief executive warned business will suffer in the coming year if the U.S. doesn’t resolve its trade war with China.

 

The Georgia Ports Authority reported a record 37.5 million tons of cargo moved through its ports in Savannah and Brunswick in the 2019 fiscal year that ended June 30. That’s an increase of 4.2% over the previous fiscal year.

 

Cargo containers shipping goods from consumer electronics to frozen chickens through the Port of Savannah reached 4.5 million container units of imports and exports.

 

Some of the fiscal 2019 growth was fueled by businesses shipping goods early in hopes of avoiding tariffs imposed in the trade war between President Donald Trump’s administration and China. A strong economy also boosted the numbers, said Griff Lynch, executive director of the ports authority.

 

But Lynch said he expects an ongoing trade war would hurt the ports’ business in fiscal 2020.

 

“If the tariff situation doesn’t get resolved, I think we will certainly feel it for the year forthcoming, on the exports especially,” Lynch said. “So we’ve got to get a resolution there and I think we will.”

 

He noted that container volumes for Savannah were down about 2.5% in June compared to the same month last year. Lynch said construction that delayed some ships from arriving until July was mostly to blame.

 

“On the export side we are seeing a little bit of a dip,” Lynch said. “That could very well be linked to the tariffs.”

 

New tariffs could take a direct chunk out of the Georgia Ports Authority’s bottom line. The Trump administration has proposed adding ship-to-shore cranes to its list of imported goods for which steep tariffs get charged. If that happens, Lynch said, the Georgia ports would pay $25 million in tariffs on $100 million in cranes set to arrive in the next year.

 

Regardless, Lynch said he’s “cautiously optimistic” Georgia’s ports will see more growth in the coming year.

https://www.postandcourier.com/business/georgia-ports-see-record-growth-tariffs-could-hurt-in/article_b21ebcb8-b2da-11e9-a6ac-b7c41d9248c0.html?utm_medium=social&utm_source=email&utm_campaign=user-share

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