While the imminent departure of Hanjin Shipping Co. puts a severe dent in the Port of Portland’s containerized trade, it won’t affect companies that ship some of the state’s most valuable products. Semiconductors, computer equipment, medical devices and other high-value items move primarily by air these days.
“At a high level, will it really affect us? No,” said Jason Willey, investor relations director at Hillsboro’s FEI Corp.
The company doesn’t expect a customer to wait three or four weeks for a focused ion-beam system to cross the ocean and clear customs. “A good portion of the tools we manufacture and ship from Hillsboro are time-sensitive deliveries for our customers,” Willey said.
The port says the most valuable things that come to or go from Portland by sea are autos and agricultural products, from wheat to logs. But highly engineered computer product and other technical equipment fly in and out of area airports.
Air cargo costs more to ship, but manufacturers pay for it because speedy deliveries are essential. And, in some cases, the goods may be too valuable to trust to third-party carriers.
Consider a consumer purchase like an iPad. Once you’ve cleared the emotional and financial hurdle of plunking down a credit card number, Apple seeks to gratify you quickly. It invites you to track your iPad’s journey as it flies from from Shenzen, China to you, with stops in places like Anchorage and Louisville.
But imagine if your iPad was moving by container. “Your iPad is approaching the International Date Line” doesn’t move the needle much on the scale of customer satisfaction.
Economists have adapted their tools to recognize the growing importance of air cargo shipments.
The state Office of Economic Analysis, responsible for forecasting state revenues, tracks air — not ship — cargo as a leading indicator of economic activity. Deputy state economist Josh Lehner said that’s partly because so many high tech firms ship their goods on planes, but it’s also partly because the economy is shifting toward service-based products — a segment not reflected in container shipments.
