Georgia Ports Authority Prepares for Cargo Traffic Downturn

News Summary

The Georgia Ports Authority faces potential challenges in cargo traffic due to global trade uncertainties and new tariffs. An economic impact study highlights the ports’ vital role in supporting jobs and economic growth across Georgia. The Port of Savannah recorded significant growth but also experienced a drop in container volumes in June. Despite the challenges, ongoing investments aim to enhance capacity and operational efficiency to sustain the ports’ contributions to the state economy.

Savannah, Georgia – The Georgia Ports Authority is bracing for a potential downturn in cargo traffic amid ongoing global trade uncertainties and the introduction of new tariffs. Recent analyses indicate that while the ports have historically fostered significant economic growth, current trends suggest challenges ahead.

An economic impact study by the University of Georgia’s Terry College of Business reveals that port activities support 650,965 full- and part-time jobs across the state. This figure underscores the vital role that the ports of Savannah and Brunswick play as economic engines for various sectors, including logistics, manufacturing, and agriculture. Job growth linked to port operations saw an increase of 41,770 jobs, or 7% compared to the fiscal year 2023, highlighting the ports’ influence on employment in Georgia.

Governor Brian Kemp has reinforced Georgia’s standing as the No. 1 state for business, citing the reliability of infrastructure as a key factor. The ports collectively account for 12% of total state employment, affirming their significant contribution to the workforce.

Recent figures show that the Georgia Ports Authority logged its second busiest fiscal year for container traffic on record in fiscal year 2025, with the Port of Savannah experiencing an 8.6% growth rate, significantly outpacing other ports in the Southeastern United States. However, despite the growth, a notable 9.6% drop in container volumes was recorded in June, attributed to a slowdown following a robust spring season.

The Port of Brunswick has emerged as the country’s busiest gateway for autos and heavy equipment, handling 901,000 units of Roll-on/Roll-off cargo in 2024. For fiscal year 2025, the port maintained its momentum, moving 870,775 units of autos and heavy equipment, reflecting consistent performance in this sector.

Nevertheless, the ongoing trade environment remains uncertain. Tariffs have significantly impacted vehicle imports, which have declined by 16% for the fiscal year. In contrast, trade agreements with the European Union are expected to stabilize, with tariffs projected at 15%.

The Georgia Ports Authority continues to work on long-term projects aimed at enhancing capacity and efficiency. A total of $472 million has been approved for new projects for fiscal year 2025, which includes the addition of a fourth roll-on/roll-off berth in Brunswick and the planned Ocean Terminal project in Savannah that aims to boost capacity by 1.5 million TEU.

As of now, GPA’s trade shows an import/export ratio of approximately 70-30, with projections to improve exports in upcoming years. Savannah’s operational efficiency has recently improved, leading to multiple records in monthly container traffic. Intermodal operations at the ports also reached a record of 52,645 containers in rail movements, complemented by record truck operations at the Garden City Terminal.

Additionally, a new U.S. Customs facility set to open at Garden City Terminal by early June will double inspection capacity, further enhancing operational capabilities.

Overall, while the Georgia Ports Authority has reported significant growth and accomplishments, the influence of global economic factors and tariffs raises questions regarding future cargo traffic and sustained growth. Continued investment in infrastructure improvements remains critical to maintaining the ports’ status as vital contributors to Georgia’s economy.

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