By Molly Parker
mparker@scbiznews.com
Published Nov. 18, 2009

The Port of Charleston continues to bleed business at a faster rate than its counterparts across the country, though efforts are afoot to diversify trade opportunities and rein in losses.

From July to September, the number of containers — measured by 20-foot equivalent units — crossing Charleston’s docks dropped almost 28% compared to the same period a year ago, according to the American Association of Port Authorities’ monthly report.

“We’re getting hit harder than anyone on the loss year to date,” said Paul McClintock, chief commercial officer for the S.C. State Ports Authority.

On the East Coast, Savannah’s business was down about 10%; Virginia’s Port of Hampton Roads registered a 16% drop; and the Port of New York & New Jersey’s container traffic fell 13%. During that period, Savannah’s 618,257 TEU count was more than double the 299,532 TEUs that Charleston handled.

McClintock told the SPA board at Tuesday’s monthly meeting that his sales team is working diligently to add new trading partners to the authority’s portfolio. Much of the Port of Charleston’s business is tied to the movement of European goods, particularly auto parts and automobiles.

Those sectors are underperforming, though McClintock said European trade typically picks up around this time of the year as Asian trade declines. That could help Charleston’s standing among the nation’s top ports. The Port of Charleston saw a slight uptick in business in October, he said.

McClintock recently returned from a whirlwind 2 1/2-week trip to Asia, where he attended a trade conference and met with potential clients scattered across the continent. His ultimate goal is to strengthen Charleston’s trade position with the Far East.

That won’t happen immediately, McClintock said. While China appears to be leading the way out of the global recession, that country’s recent economic success is largely domestically driven through stimulus programs, which is doing little to bolster trade volumes, McClintock said.

The bulk of holiday-related goods have already landed here, though a bit more continues to trickle in, McClintock said. Overall, McClintock said most of his conversations with the steamship lines have not been optimistic on their end.

“It was just gloom and doom from all the carriers,” McClintock said. “It’s going to be a cold nuclear winter.”

The world’s major carriers lost a collective $9 billion in the first six months of the year and are expecting to report similar losses for the last half of the calendar year. The typical peak season between July and October hardly peaked at all, McClintock said.

Also on Tuesday, the SPA board approved the selection of Columbia-based NAI Avant to market the authority’s 495 acres of waterfront property on Daniel Island where it had once planned to build a terminal. The Legislature directed the SPA to put the land on the market at the end of last session. NAI Avant is charged with all aspects of the sale. The next step is to establish a listing price for the property.

Additionally, the board voted to name Columbia developer Bill Stern as chairman of the board for a two-year term. He will begin in the position on Jan. 1, replacing current Chairman David Posek, a retired executive from Greenville. Posek will remain on the board.

Reach Molly Parker at 843-849-3144.