Port Slowdown Hits Charleston; Savannah Port Traffic Up

From The Wall Street Journal:

For years the Port of Charleston was one of the busiest points of entry for ships and goods coming into the U.S., but a global shipping slowdown and competition from rival cities are threatening one of the oldest port economies in the country.

On both coasts of the U.S., ports that not long ago were anticipating virtually limitless growth in ships arriving packed with mostly Asian imports are struggling as freight traffic declines sharply.

With its relatively deep water and central location in the Southeast, one of the fastest-growing regions of the country, Charleston's port was a key gateway for goods including lumber, electronics and pharmaceutical products.

In recent years, Charleston has been losing market share to more innovative and aggressive East Coast ports, particularly Savannah, Ga., 100 miles to the south. From 2005 to 2006, as large retailers such as Target Corp. and Ikea began building massive distribution centers near Savannah, Charleston's container traffic dropped 9%, followed by a 7% drop in 2007, according to U.S. Department of Transportation statistics.