Oregon’s sole ocean seaport, the Port of Portland, is set to suspend its container operations starting October 1, as financial challenges deepen. This decision follows the port’s increased activity during the pandemic, which served as a temporary relief from congested major ports. However, with the normalization of the industry, the financial strain has become unsustainable. Port executive Keith Leavitt communicated the closure to shippers after the failure to secure a third-party operator, highlighting the lack of financial support from the state as a key issue.
The port, continuing to manage RoRo, break bulk, and heavy cargo, cited the economic impracticality of maintaining its container services amid mounting losses exceeding $30 million over three years. Despite increases in volume since 2019, the projected shortfall for this year alone stands at $14 million. The port’s geographical and market size constraints, coupled with the logistical challenges posed by its location over 100 miles inland from the ocean on the Columbia River, have compounded its difficulties.
This suspension affects various sectors, notably agriculture and seafood, which now face higher transportation costs as they reroute their goods through other ports. The shutdown not only impacts the local economy but also up to 1,500 jobs connected to the port’s operations. This decision marks another turbulent chapter for the Port of Portland, which had previously experienced operational disruptions due to labor disputes with terminal operators.
Credits:
- Maritime Executive, “Oregon’s Portland Seaport to Suspend Container Operations as Losses Grow”, Maritime Executive Article.
