Port Operations Glossary – Port Authority of NY & NJ
Key Performance Metrics
- Turn Times: The amount of time a truck spends inside a marine terminal to complete a transaction (measured in minutes).
- Single Moves (Mins): The average time required for a truck to complete a single transaction, such as picking up or dropping off one container.
- Double Moves (Mins): The average time required for a truck to complete two transactions in a single terminal visit (e.g., dropping off one container and picking up another).
- Total Moves (Units): The total number of container transactions completed at the port terminals during the reporting period.
- Number of Trouble Tickets: Exceptions or issues requiring special handling or resolution during terminal operations.
- Unique Truck Visits: The total number of individual truck entries to port terminals during the reporting period.
- Terminal Departure Dwell (Days): The average number of days a container remains at a marine terminal after vessel discharge until it leaves via truck or rail.
- Import Rail Departure Dwell (Days): The average number of days a container destined for rail transport remains at the terminal before departing on a train.
- Number of Containers: The total count of shipping containers present at the port during the reporting period.
Operational Terms
- Gate Activity: The movement of trucks in and out of marine terminals, typically measured by RFID readers at terminal gates.
- YoY (Year-over-Year): A comparison of metrics between the current reporting period and the same period in the previous year.
- PortTruckPass: The system used to track and manage truck movements within the port complex.
- RFID Readers: Radio Frequency Identification technology used to scan and record trucks entering marine terminals.
- Intermodal: Transportation involving multiple modes (e.g., ship to rail to truck) with containers transferred between these different transportation systems.
- Intermodal Connectivity: The efficiency of transfers between different transportation modes, particularly between marine terminals and rail facilities.
- Intermodal Transfer Bottlenecks: Points of congestion or delay in the process of transferring containers between transportation modes.
- Last-Mile Distribution: The final stage in the delivery process from a distribution center to the end customer.
Global Shipping Terms
- Red Sea/Suez Canal Vessels: Ships that would normally transit through the Suez Canal to travel between Asia and Europe/East Coast North America.
- Cape of Good Hope Rerouting: Alternative shipping route around the southern tip of Africa, used when the Suez Canal route is unavailable or problematic. This route adds significant time and distance to voyages.
Infrastructure & Projects
- PSCI (Port Street Corridor Improvement): Infrastructure project to enhance transportation corridors servicing the port.
- Infrastructure Utilization: The degree to which physical port assets (cranes, berths, yards, gates) are being used relative to their capacity.
- Supply Chain Resilience: The ability of the port and related logistics networks to adapt to and recover from disruptions.
Statistical Terms
- Weekly Average: The mean value of a metric calculated over a seven-day period.
- Percentage Points (pp): Unit used to express the arithmetic difference between two percentages (e.g., a change from 10% to 15% is an increase of 5 percentage points).
- Growth Rate: The percentage increase in a metric compared to a previous time period.
Executive Summary
The port experienced significant operational improvements during the week ending June 15, 2025, with container inventory dropping to its lowest level in the reporting period at 21,338 containers—a 22.1% decrease from the previous month and a 16.9% decrease year-over-year. This dramatic reduction in inventory, combined with improved processing efficiency, signals a major shift from crisis-mode operations to normalized flow, with profound implications for the regional industrial real estate market.
Key Operational Findings: Single move turn times improved to 37.88 minutes, outperforming both last month (40.42 minutes) and last year (39.78 minutes), while rail dwell time plummeted 63.6% from 6.46 to 2.35 days.
Industrial Real Estate Impact: The operational improvements signal reduced demand for emergency overflow warehouse space, with port-adjacent industrial vacancy expected to rise from historical 3-4% to 6-8% over the next 6 months, creating a tenant-favorable market.
Container Inventory Analysis
Container Inventory Trends and Real Estate Implications
The sharp decline in container inventory represents a significant operational achievement and a pivotal moment for industrial real estate markets. The 22.1% month-over-month reduction from 27,404 to 21,338 containers suggests improved cargo flow and reduced yard congestion, directly impacting warehouse demand patterns.
This improvement is particularly noteworthy given that the sudden pause of US-China tariffs has led to a significant surge in cargo bookings from China to the US, which could cause port congestion and equipment shortages. The port’s ability to reduce inventory despite these pressures demonstrates exceptional operational efficiency.
Turn Time Performance Metrics
Operational Efficiency and Market Dynamics
Turn time improvements across both single and double moves demonstrate enhanced operational efficiency that directly impacts industrial real estate demand patterns. The 15.6% improvement in double move times particularly benefits just-in-time logistics operations, reducing the need for buffer inventory storage.
These efficiency gains occur as carriers changing their service partners, especially on the Transatlantic trade, expect significant disruption to schedules in Q1 2025. The port’s ability to improve performance despite global disruptions positions the region’s industrial market favorably compared to other coastal markets.
Market Intelligence: With national vacancy rising to 8.8% in April and the development pipeline contracted to its lowest point since 2015, the combination of improving port efficiency and constrained new supply suggests market stabilization rather than distress.
Dwell Time Comparative Analysis
Import Rail Dwell Time Achievement: The current week’s import rail dwell time of 2.35 days represents a 63.6% improvement from last month’s 6.46 days and approaches pre-congestion levels, signaling normalized supply chain operations.
Dwell Time Improvements and Warehouse Utilization
The dramatic reduction in import rail dwell time from 6.46 days to 2.35 days represents one of the most significant operational improvements with direct real estate implications. This 63.6% reduction means cargo spends less time at the port, reducing the need for nearby surge capacity warehouses.
Truck Visit Volume Analysis
Volume Patterns and Tenant Demand Shifts
The 10.6% decrease in truck visits correlates with reduced container inventory, suggesting improved cargo velocity rather than decreased port activity. This efficiency translates to changing tenant requirements in the industrial market.
Strategic Recommendations by Stakeholder:
- Property Owners: Focus on tenant retention with competitive renewal packages, invest in modern amenities (EV charging, solar), and consider repositioning older assets
- Tenants: Capitalize on increased negotiating leverage now, right-size operations, and lock in favorable long-term leases before market stabilizes
- Investors: Target value-add opportunities in functionally obsolete properties, avoid speculative development, focus on pre-leased projects
The year-over-year comparison showing a 6.5% decrease in truck visits aligns with broader market trends, as Port of Long Beach CEO Mario Cordero noted they are “anticipating a more than 10% drop-off in imports in May” due to shifting trade policies.
Weekly Performance Trends
Market Context and Future Outlook
The port’s performance improvements occur within a challenging global environment where strikes by dockworkers, truck drivers, and customs officials have led to significant slowdowns and even complete halts at major hubs. Despite these headwinds, the facility has achieved notable efficiency gains.
Global Challenges Creating Local Opportunities:
- Red Sea crisis forcing longer vessel routes benefits efficient ports
- Labor disruptions at competing ports drive cargo to stable facilities
- Infrastructure limitations elsewhere highlight operational advantages
- Sudden US-China tariff pause creating temporary surge opportunities
Industrial Real Estate Market Forecast
Comprehensive Performance Summary
Conclusions and Strategic Positioning
The week ending June 15, 2025, marks a pivotal transition from crisis-driven operations to normalized flow, with profound implications for industrial real estate markets. The 22.1% reduction in container inventory, combined with dramatic improvements in dwell times and turn times, signals the end of the acute storage crisis that has driven emergency warehouse demand.
Key Market Implications:
- Supply-Demand Rebalancing: With net absorption of 40 million s.f. in Q1 2025 and development pipeline at historic lows, market fundamentals remain sound despite near-term headwinds
- Quality Premium: Modern facilities with advanced features will outperform as tenants consolidate from emergency overflow space
- Geographic Shifts: Secondary markets 10-50 miles from ports may benefit as cost-conscious tenants seek value
- Investment Opportunities: Transitional period creates acquisition opportunities for well-capitalized investors
Action Items by Timeline
Immediate (Next 30-60 days):
- Property owners should proactively engage tenants with renewal incentives
- Tenants should initiate lease negotiations while leverage is favorable
- Investors should identify and underwrite distressed acquisition targets
Near-term (3-6 months):
- Implement property upgrades to differentiate in competitive market
- Finalize long-term lease commitments before market stabilizes
- Position portfolios for the next growth cycle
Long-term (6-24 months):
- Prepare for market recovery as supply constraints support rent growth
- Monitor reshoring trends for emerging demand drivers
- Develop pre-leased projects for 2026-2027 delivery
Bottom Line: The port’s operational excellence in achieving record-low container inventory and improved throughput metrics positions the regional industrial market for a soft landing rather than a crash. While near-term challenges exist for property owners, particularly those with older assets, the combination of limited new supply, positive absorption trends, and long-term demand drivers suggests opportunities for those who adapt quickly to the new market dynamics.
Data Source: Port Authority of NY & NJ
