U.S. Port Industry

America's Ports: Gateways to Global Trade

Seaports are gateways to domestic and international trade, connecting the United States to the world. Because of the nation's port system, food grown by Iowa farmers reaches tables in Japan and Russia. Manufacturers in Texas can sell goods and services profitably to foreign countries. And Appalachian and Midwest coal moves through inland waterways and coastal ports to power plants domestically and around the world, providing the fuel to heat and light homes, businesses and cities.

North America's history has been shaped by its ports on the seacoasts, rivers and the Great Lakes. From the late 1400s, the sheltered harbors provided safe refuge for early explorers and settlers. Cities depended on docks and shipping terminals as their communications and commerce lifeline to the rest of the world. As port cities prospered and grew, the bustling wharfs and big ships became less visible, but no less important, as major highways and tall buildings dominated the waterfront.
For more information, download U.S. Ports Fact Sheet.

Ports Benefit the Nation

Today, the U.S. is served by publicly- and privately-owned marine facilities located in approximately 360 commercial sea and river ports. These are found along the Atlantic, Pacific, Gulf and Great Lakes coasts, as well as in Alaska, Hawaii, Puerto Rico, Guam, and the U.S. Virgin Islands. Some 150 state, local and county seaport agencies, navigation districts and port authorities make up the public sector port industry today.

Public ports develop and maintain the shoreside facilities for the intermodal transfer of cargo between ships, barges, trucks and railroads. Ports build and maintain cruise terminals for the growing cruise passenger industry.

In addition to maritime functions, port authority activities may also include jurisdiction over airports, bridges, tunnels, commuter rail systems, inland river or shallow draft barge terminals, industrial parks, Foreign Trade Zones, world trade centers, terminal or short-line railroads, ship repair, shipyards, dredging, marinas and other public recreational facilities. Ports may also undertake community or regional economic development projects beyond those of direct benefit to the port itself.

Ports play a major role in industrial plant location. Many manufacturing and processing industries locate their plants at or near waterfront sites to take advantage of low-cost inbound transportation of raw materials for production and outbound shipments of finished products to both export and domestic markets. Foreign Trade Zones, located on port property, also provide incentives for value-added manufacturing services and trade.

What Moves Through Ports

U.S. ports and waterways handle more than 2 billion tons of domestic and import/export cargo annually. By 2020, the total volume of cargo shipped by water is expected to be double that of 2001 volumes. Much of total domestic production of basic commodities and finished products is shipped by water, including apples, wastepaper, corn, lumber, iron ore, steel, scrap steel, potatoes, phosphate, plastics, film, machinery, and modular homes. About two-thirds of all U.S. wheat and wheat flour, one-third of soybean and rice production and almost two-fifths of U.S. cotton production is exported via U.S. ports. U.S.- produced coal, grain and forest products also compete well in international markets because of our efficient transportation system.

Automobiles and the passenger cruise industry are also highly dependent on deep-draft seaports. For example, reports from the individual ports that handle autos show that the more than 5 million passenger cars, vans, SUVs and light trucks were imported and exported through U.S. seaports in 2007. And, for the cruise industry, the Cruise Lines International Association (CLIA) reports that 9.45 million U.S. residents were cruise passengers in 2007, accounting for 75 percent of all cruisers, while passenger embarkations at U.S. ports totaled 9.18 million, a 2 percent increase and a 73 percent share of global embarkations. CLIA also notes that the North American cruise industry grew by 7 percent in 2007, while creating more than 350,000 jobs and generating $38 billion in total economic output. These economic impacts affected all 50 U.S. states. The top 10 states accounting for 78 percent of direct purchases and 82 percent of the total employment and income impacts were: 1. Florida, 2. California, 3. Alaska, 4. New York, 5. Texas, 6. Hawaii, 7. Georgia, 8. Washington, 9. Illinois and, 10. Colorado.

Imports provide American consumers access to the global marketplace. Electronics, clothing and other consumer goods from China, bananas from Central America, wine from Chile and Australia, and shoes from Italy all make their way to U.S. consumers on cargo ships that arrive at ports. Many products are shipped in big metal boxes called containers. Containers are then loaded onto trains or trucks for delivery to their final destinations. One of our most popular beverages -- coffee -- would not be readily available without ports. Coffee beans arrive on ships and are often roasted at facilities on port property. The roasted beans are then moved by truck or rail to inland markets.