As demand for automobiles plummet amid a weak economy, unwanted vehicles are stacking up at the Helen Delich Bentley Port of Baltimore at record levels, port officials said.
The Port of Baltimore earlier this year beat out Jacksonville, Fla. to rank first among all 361 U.S. ports in auto exports, and is second behind Newark, N.J. in total number of cars handled. While exports still flow out immediately upon arrival, imports stay at the port for several weeks to have American-style components installed.
The usual “dwell time” for an imported car to stay at one of the port’s three auto-processing companies is between two and three weeks, port spokesman Richard Scher said. But in the last month, that time has increased by a week or two, he said.
“The imports are sitting longer than they ever have, that’s true everywhere,” said Maryland Port Administration Executive Director Jim White. “Go to a dealership, there’s no one in there but the dealers.”
Dealers usually place orders with manufacturers months in advance, but are able to trim the number of cars they receive to meet demand. But auto manufacturers are much slower to adjust, and can take months to alter assembly line production.
The problem has become much worse at West Coast ports. In Long Beach, Calif., for the first time Mercedes-Benz, Toyota, and Nissan have all asked to lease space from the port to store the unwanted cars, according to media reports.
At the Port of Baltimore, a banner year in fiscal 2008 has given way to flat auto numbers in the first fiscal quarter, White said. The port handled 600,000 auto imports and exports last year, and White said he expects that number to decline to 510,000 this year.
One of Baltimore’s auto processors, AMPORTS ATC, hosted a Chrysler rally last week in support of a bailout for U.S. automakers. The company has 400 employees in Baltimore, according to AMPORTS President and CEO Steven Rand, and could be affected by automakers woes.
One in 10 American jobs is connected to the auto industry, said Chrysler LLC President Jim Press at the rally. “There’s literally hundreds of jobs here in Baltimore because of Chrysler,” Rand said.
