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SPARTANBURG — Supply chain disruptions and delays in logistics at the nation’s ports are expected to continue through early 2023, an official with the South Carolina Ports Authority said.
Michael Hoffman, S.C. Ports Authority general manager of intermodal operations, said several factors have caused longer wait times at ports, importing and exporting goods. He was a featured speaker at OneSpartanburg’s Voice of Business Brunch held at the Greenville-Spartanburg International Airport’s conference room on Feb. 7.
Inland Port Greer, an S.C. Ports Authority facility, is just north of the airport.
During the pandemic, Hoffman said people have ordered more goods than spending money on services. It’s placed a strain on the supply chain with more volume than the ports can handle. Hoffman said there are more than 15 ships waiting offshore in Charleston to unload their goods. The average wait time for import ships to unload their goods in Charleston has increased from four days to eight days. It’s also taken longer for exports in Charleston with an average wait time of 15 days, which previously was eight days.
“Right now we have 30,000 exports on the terminals in Charleston,” Hoffman said. “We need those to get on vessels to leave to create more space but vessels aren’t moving fast enough to keep clearing those boxes. We are trying to meet the demands of export customers.”
Hoffman said the nation’s shortage of about 80,000 truck drivers has added to the supply chain issues. Worker shortages at distribution centers have also created a backlog. The nation’s ports can handle about two million containers combined. The total volume across the country exceeded capacity in 2021, he said.
“In the United States, that volume is far exceeding that right now,” Hoffman said. “That is what is causing the backup. We need to better utilize resources or it will still remain a problem.”
Hoffman said longer wait times could continue through late 2022 or early 2023. He called the delays at the nation’s ports “unprecedented.”
While delays at ports are expected to continue, Hoffman said South Carolina is poised for continued growth and investment in its port system, with $3 billion in planned investments over the next decade.
Growth at Inland Port Greer is expected to continue. Hoffman said Inland Port Greer does about 157,000 rail lifts annually and is expected to increase to 200,000 rail lifts in the future. The state’s ports authority has had success with inland ports and might consider future expansions into other areas of the state, he said.
“We might start looking around,” Hoffman said. “I don’t think we are done in South Carolina with our inland ports. They have been very successful and we know what to do and what not to do. There could be another one (inland port) or two.”
Allen Smith, OneSpartanburg CEO and President, said Inland Port Greer has increased investment in Spartanburg County since opening in 2013.
“There is tremendous momentum in Spartanburg County and a lot of that investment has to do with the ports of South Carolina,” Smith said.
In 2021, companies pledged $1.9 billion capital investments in Spartanburg County and 4,045 new jobs. There were 44 total economic development projects announced in 2021, according to OneSpartanburg.
Follow Chris Lavender on Twitter @spartanburgpc
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