Quest for Quality 2020: North American Ports

As our Patrick Burnson has been reporting over the past few months, the American Association of Port Authorities (AAPA) and participating members has been raising public consciousness of the vital role they play in the nation’s economy.

“Port authorities are eager to let the shipping public know that investment in dredging and infrastructure was continuing to ramp up on all coasts in anticipation of more mega-vessel calls,” says Burnson. “Platforms for digitization and related technologies are also being installed, along with new recruitment plans for a new generation of highly skilled workers.”

And while planning for the future should always be top of mind for North American ports, analysts at Fitch Ratings tell Burnson that many new initiatives may have to be put on hold—at least in the short term.

Indeed, the pandemic is having wide-ranging effects on port space, both through disruptions to supply chains emanating from the early spread of infection in Asia and government-imposed restrictions on individuals, businesses and corporations alike—the former directly affects cargo port volumes, while the latter affects the broader consumer demand that drives imports and exports.

Furthermore, the economic effects of the pandemic are expected to generate throughput and cargo declines along with financial stresses well in excess of what Fitch expects under typical recessionary conditions.

In Fitch’s view, credits with high concentrations of cargo trade with Asian markets will initially see the most acute effects to volumes and revenues, with some relief expected as the pandemic dies down in Asia and volumes rebound with factories coming back online and blank sailings reducing.

However, through all of the clouds of uncertainty that still remain, we’re happy to report that the 12 ports taking home Quest for Quality gold in 2020 have worked to raise their game to continue to offer world class service despite the historic challenges put in their way.

In the Northeast, the Port Authority of New York & New Jersey hit a high note, posting a 41.64 weighted score. In the Mid-Atlantic, Port of Virginia and Port of Baltimore were the two ports scoring above the weight average for the win. In the South region, Port of Savannah posted an impressive 48.41 weighted score, the highest in the category.

In the growing Gulf region, the Port of Houston was the only port to score above the weighted average with a 47.34, while in the Great Lakes region the Port of Montreal takes home Quest for Quality gold with a 47.27 weighted score. In the busy West category Prince Rupert Port Authority posted the highest mark with a 46.94.