Puget sound and Alaska shipping: how freight carriers are adjusting to high fuel costs.

• Author: Meyring, Justin
• Position: TRANSPORTATION

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Since the gold rush of the late 1800s, the Puget Sound region has been a vital link in the importing and exporting of consumer goods to and from Alaska. The bond between the two regions is currently stronger than it's ever been, and as Alaska's economy grows, that bond will grow with it. From simple household items and construction material moving north to frozen fish heading south, the list of items being carried to and from the Puget Sound Region to Alaska is expansive and the needs are great. But with fuel costs higher than they've ever been, new challenges are facing the entire U.S. population, and the shipping industry between Alaska and Puget Sound is no exception.

According to Mike Wasem, the manager of communications and media relations at Port of Tacoma in Washington State, the value of two-way maritime trade between Alaska and the Port of Tacoma was $3.5 billion in 2007. "We are essentially a gateway for cargo to be transferred from one mode of transportation to another as it heads to or from Alaska. We work very hard to keep Alaska a priority on our part." About 75 percent of all consumer goods consumed in Alaska are shipped from the Port of Tacoma. Wasem notes some of the major items being shipped to and from Alaska economies are rental cars, military personnel movements, and the increased activities in the oil and gas industry.

MARITIME SHIPPING

Although it would be difficult to distinguish between the impacts of fuel costs and the slowdown in the overall U.S. economy, maritime shipments provide an excellent indicator for how well the economy in Alaska is performing.

Some shippers have performed slightly better than others, but overall performance from 2007 to 2008 is relatively flat. For the first six months of 2008, the shipment volume from the Port of Seattle is up 3.3 percent from the same period in 2007.

But for Jerry Wendorf of Lynden Transport, "2008 is running a bit softer than 2007, but there's more variables to that than just the fuel costs. I don't think it's booming, but it's held up pretty well. I haven't seen a big increase in our volume of freight related to the retail sector--there's been a fairly substantial increase in the activity in the oil industry."

Bill Deaver, president and COO of Totem Ocean Trailer Express (TOTE), says, "TOTE marketing estimates that the total tonnage shipped to the Railbelt is off by 4.9 percent year-to-date versus the first half of 2007."

So it would seem that...