North American Port Container Volumes Rose 11.2% in 2024

North American port activity rebounded in 2024, with container volumes up 11.2% as shippers front-loaded freight amid trade policy uncertainty, per Commercial Search.

Adapting to Trade Policy

North American ports experienced a major rebound in 2024, with container volumes increasing 11.2% to 61.3M TEUs, making it the third-busiest year on record, per a Savills report.

Shippers front-loaded freight ahead of potential trade disruptions, boosting traffic at West Coast hubs like Los Angeles and Long Beach.

Baltimore and Montreal were the only major ports to see decreased volumes. If trade policy volatility persists, Savills expects shippers to continue front-loading in 2025, though overall trade with China is expected to decline as supply chains diversify.

Industrial Leasing Lags

Despite rising container volumes, warehouse leasing near ports has remained sluggish. Mark Russo, VP of industrial research at Savills, attributes this to economic uncertainty but anticipates demand recovery in 2025 as inventory movement picks up.

Longer rail dwell times suggest that much of the increased freight volume at LA and Long Beach is bound for markets outside Southern California.

However, a moderate uptick in touring and leasing activity has been noted, with tenants proceeding cautiously due to concerns over tariffs and inflation.

Investment Heating Up

Developers continue investing in logistics hubs near major ports. CRG has made strategic acquisitions in Savannah, including The Cubes at West Port, a 764-acre industrial park, and The Cubes at Interstate Centre II, a 4.3M SF industrial development.

The demand for modern distribution centers is rising as companies look to optimize supply chains and mitigate labor and congestion challenges. The Port of Savannah’s expansion has fueled interest in Class A industrial properties nearby.

Markets like Houston and Jacksonville saw significant YoY transaction volume growth, with JLL reporting a 20% increase in Houston and a 48% increase in Jacksonville.

Notable deals include Stonepeak’s acquisition of 1.8M SF of industrial space in Jacksonville and the purchase of Houston’s Independence Logistics Park.

Positive Outlook

As port activity continues rebounding, industrial leasing and development in key logistics markets are expected to gain momentum in 2025.

Looking ahead, JLL anticipates increased investment in New Jersey and Southern California, as container growth fuels leasing demand and rents stabilize, creating more attractive entry points for investors.

Meanwhile, speculative development is ramping up. Avison Young reported two new Class A industrial buildings totaling 540K SF coming to the Northeast Georgia Inland Port, with Alliance Industrial Co. set to break ground in Q1 2025.