Puget Sound Ports Facing Stormy Seas

Increased competition and deregulation of the shipping industry could make 1996 a rough year for Puget Sound ports and shipping lines.

“It is not a rosy picture,” says Pat O’Malley, Tacoma Port Commission president. “It’s scary out there.”

With the number of ships increasing faster than the amount of cargo they carry, and deregulation further encouraging competition, shipping rates could be driven so low that some lines may be forced out of business.

“We’re well aware of what happened to the airline and trucking industries, and it hasn’t been painless,” said Peter Bennett, Pacific Northwest vice president for K Line America Inc.

Said Doug Ljungren, business planning manager for the Port of Tacoma: “I can see some pretty tough times financially for steamship lines. A lot of people are holding their breath waiting to see what happens.”