SIMIC

ACCORDING to the American Association of Port Authorities (AAPA), the recent increase in federal funding for US ports will support their growth and serve as a backup plan if shippers face congestion at certain ports, reports New York's Journal of Commerce.
AAPA president Chris Connor noted that while the industry appreciates the new investment, many members are not in favour of the proposed update to the Ocean Shipping Reform Act of 2022 (OSRA-22), which would increase port and marine terminal oversight.
The Bipartisan Infrastructure Law and other appropriations will allow ports to access US$700 million annually through 2026 under the Port Infrastructure Development Plan.
Additionally, the US Army Corps of Engineers' budget for dredging shipping channels has increased $2 billion annually, giving it close to $5 billion annually for dredging.
Mr Connor believes this funding will make ports more efficient, resilient, and better prepared for increased container volumes in the future.
"These funds will make ports stronger, more resilient, and more efficient. For decades, our ports have been aging and underfunded," said Mr Connor.
Maritime Research senior fellow John McCown believes that the US-wide import volumes of 24.3 million TEU in 2022 could double by 2047.
"That means 25 years from now we are going to have roughly five-and-a-half times of the volume equivalent of the Port of Los Angeles," said Mr McCown.