Page 26: of Maritime Reporter Magazine (October 2020)

Insights | AAPA 2020 SHIPPING & PORT ANNUAL

America’s Ports Need

COVID-19 Fiscal Relief

Photo: AAPA

By Christopher J. Connor or most of 2020, COVID-19 has profoundly altered down in the downward cargo volume spiral they experienced our ways of life. While many aspects of our daily rou- during the ? rst half of 2020. On top of lost income related tines have been severely restricted to slow the virus’ to reduced cargo volume and ship calls this year – the cruise

Fspread, our freight networks are still running around industry at U.S. ports has come to a standstill, which in 2018 the clock, supporting our daily existence while ensuring pub- contributed an additional $53 billion to the U.S. economy.

lic health and safety. As a result, direct job losses at America’s seaports this year

Take America’s ports for example. During the pandemic, are estimated to reach 130,000. That’s 20% of the U.S. mari- they’ve helped ensure our shelves remain stocked and com- time workforce at full employment. merce continues to ? ow. Due to the supply chain in which According to the American Society of Civil Engineers’ 2017 ports are a central link, people have been able to safely navi- Infrastructure Report Card, the nation’s ports earned a medio- gate through their daily activities with the knowledge that cre ‘C+’. The Report Card cites impacts of natural disasters critical medical supplies, consumer goods, personal protec- and other crises at ports that result in billions of dollars in tion equipment (PPE), energy commodities and raw materials damage a year and the loss of long-term economic activity, used in U.S. exports continue to move. and that was prior to the COVID-19 pandemic.

Last year, the American Association of Port Authorities Consequently, some ports are postponing plans for and in- (AAPA) reported cargo activities at U.S. seaports were re- vestment in capital improvement projects, putting the readi- sponsible for $5.4 trillion in annual economic activity, sup- ness, capacity and capability of our nation’s trade infrastruc- porting 30.8 million jobs and providing $378.1 billion in tax ture at risk. In the third iteration of its every-? ve-year Port revenue to federal, state, and local governments. Planned Infrastructure Investment Survey, AAPA in the latter

However, the economic downturn we’re facing this year has part of 2019 asked its U.S. member ports how much they and caused signi? cant economic damage to our ports, with an esti- their port property tenants planned to invest in port-related in- mated decline of 20% to 30% of their total annual receipts, de- frastructure over the next ? ve years. The answer was $163.1 spite recent news that some ports are beginning to see a slow- billion. If those investment plans are realized, it would repre- 26 Maritime Reporter & Engineering News • October 2020

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