The recent strike at 36 major U.S. ports might be over, but the underlying issue of port inefficiency remains a real problem. U.S. ports consistently lag behind their international counterparts in efficiency, presenting an ongoing challenge for agriculture and food supply chains.
According to the Container Port Performance Index (CPPI), which measures global port efficiency based on several factors, U.S. ports perform poorly compared to other countries across areas like shipping turnaround time, crane productivity and infrastructure management. Ports with lower CPPI rankings tend to face more delays and operational bottlenecks, further straining supply chains, particularly for U.S. agriculture.
The strike at ports like Houston, New York & New Jersey, and New Orleans was a temporary disruption that brought attention to the ongoing inefficiencies that already exist, particularly in the transportation of bulk agricultural commodities.
The role of automation in port efficiency
One key factor contributing to the inefficiencies in U.S. ports is the limited use of automation. While port workers are critical in maintaining operations, U.S. ports are far less automated than global competitors, especially in regions like East Asia. This results in longer vessel turnaround times, severely disrupting supply chains and increasing costs for agricultural producers.
Table 1: Container Port Performance Index (CPPI) for U.S. Ports
Port Name | Total Tonnage (2022) | CPPI 2023 Ranking | Recently on Strike? |
---|---|---|---|
Houston | 293,833,530 | 327 | Yes |
New York & New Jersey | 141,290,423 | 99 | Yes |
New York & New Jersey | 141,290,423 | 99 | Yes |
Long Beach | 92,958,926 | 376 | No |
New Orleans | 83,254,102 | 133 | Yes |
Port of Virginia | 69,433,624 | 306 | Yes |
Los Angeles | 59,819,381 | 378 | No |
Savannah | 53,692,598 | 398 | Yes |
Mobile | 50,520,298 | 186 | Yes |
Baltimore | 40,602,248 | 191 | Yes |
Philadelphia | 31,790,943 | 50 | Yes |
Port Tampa Bay | 27,979,907 | 214 | Yes |
Charleston | 27,714,537 | 60 | Yes |
Port Everglades | 25,558,659 | 63 | Yes |
Tacoma | 19,907,856 | 402 | No |
Seattle | 18,504,702 | 356 | No |
Oakland | 18,010,685 | 396 | No |
Jacksonville | 17,724,788 | 83 | Yes |
Honolulu | 14,417,022 | 219 | No |
Miami | 8,846,375 | 77 | Yes |
Wilmington | 8,672,852 | 72 | Yes |
Boston | 4,455,140 | 73 | Yes |
Data sources: World Bank. (2024). The Container Port Performance Index 2023: A comparable assessment of performance based on vessel time in port. Washington, DC: International Bank for Reconstruction and Development/The World Bank.
U.S. Army Corps of Engineers. (2024). Waterborne tonnage for principal U.S. ports and all 50 states and U.S. territories; Waterborne tonnages for domestic, foreign, imports, exports and intra-state waterborne traffic. U.S. Army Corps of Engineers Digital Library.
Impact on U.S. agriculture
Inefficient ports pose a significant challenge for U.S. agriculture, particularly for row crop farmers. While these commodities are rarely imported, the inputs required to grow them are. According to the U.S. Bureau of Economic Analysis, the import share of fertilizer inputs increased slightly in 2012 before decreasing to 28% by 2017. The pesticide and agricultural chemicals sector started with a much lower import share of 7% in 2007, gradually increasing to 8% in 2012 and 10% by 2017. This indicates a steady rise in the proportion of imports for pesticides and agricultural chemicals, reflecting a growing dependency on foreign production for these materials over time.
Figure 1: Import Share of Agricultural Inputs
Data source: U.S. Bureau of Economic Analysis Input-Output Accounts Data. Domestic Supply of Commodities by Industry, 402 Industries.
Delays affect input supply chains and disrupt the export of U.S. crops. Corn, soybeans, and other row crops face logistical bottlenecks that increase export costs and reduce competitiveness in global markets. This issue becomes even more pressing as U.S. agriculture expands its export markets for high-value products like meat, dairy, and fresh produce, which rely on quick and reliable transportation. Perishable goods are especially vulnerable to these delays, as they can lead to increased costs, reduced quality, and missed market windows.
Port inefficiencies and global food supply chains
It’s not just farmers who are affected by inefficient ports. U.S. food retailers and manufacturers should also be concerned. As shown in Figure 2, sectors like wet corn milling, flour milling, and malt manufacturing have experienced rising import shares. Even sectors with lower import reliance, such as soybean and other oilseed processing, showed modest increases. This growing globalization of imported inputs means that delays and inefficiencies at U.S. ports directly affect manufacturers’ ability to secure necessary raw materials. For food manufacturers and retailers, disruptions caused by port inefficiencies could lead to higher costs, supply shortages, and challenges in meeting consumer demand, ultimately threatening profitability and market stability. Efficient ports are therefore crucial not only for U.S. farmers but also for domestic food supply chains.
Figure 2: Import Shares for U.S. Food Manufacturing
Data source: U.S. Bureau of Economic Analysis Input-Output Accounts Data. Domestic Supply of Commodities by Industry, 402 Industries.
A call for modernization
Inefficient ports are challenging for an already-strained agri-food sector grappling with tight margins and supply chain issues. With increasing global competition, U.S. farmers and agribusinesses can’t afford to be slowed down by port delays. If American ports can’t keep up with the pace of global logistics, the competitiveness of U.S. agricultural exports could be severely impacted, affecting everything from small family farms to large agribusinesses. In the long term, addressing these inefficiencies through the modernization of port operations and the adoption of more automated technologies could significantly improve the resilience and profitability of the agri-food supply chain. As discussions around sustainability and efficiency continue, modernizing U.S. port infrastructure should be a top priority.
Improving port efficiency will require collaborative efforts among policymakers, agribusinesses, and industry stakeholders. Modernizing port operations would reduce spoilage, improve product quality, lower costs for farmers, and help maintain U.S. agriculture’s competitiveness in the global marketplace.
Further reading
Berger, P., C. Cutter, & C. Deng. 2024. “The Battle Over Robots at U.S. Ports Is On.” Wall Street Journal. October 8. https://www.wsj.com/business/logistics/us-ports-automation-union-strike-f94bb4b7?mod=hp_lead_pos7