Oregon's exports help U.S. hit record high in 2014

A banner year for Oregon exports helped send national exports to a record high in 2014, the U.S. Department of Commerce announced Thursday.

But even as the feds crow about Oregon's achievements, West Coast shipping ports are still nursing their wounds from months of slowed productivity caused by tense labor negotiations.

And at the Port of Portland, where the strife was enough to drive away one major shipping company, uncertainty still looms over the future of Oregon exports.

U.S. goods and service exports in 2014 hit $2.35 trillion, a record high, thanks in part to Oregon's $20.9 billion in merchandise exports.

"Exports are critical to economic growth and job creation in communities across the country," U.S. Secretary of Commerce Penny Pritzker said in a press release. "With 95 percent of the world's consumers living outside the United States, opening more market to 'Made in America' goods and services is fundamental to our nation's competitiveness, job creation, and the economic security of our families."

According to the Department of Commerce, the three industries driving Oregon's success included computer and electronic products, agriculture and machinery.

Agriculture alone, a hugely influential industry in the Willamette Valley, accounted for nearly 20 percent of the state's total exports.

But it's also agriculture where Oregon has been taking some of its hardest hits, as export productivity at the Port of Portland plummeted.

For months, workers and terminal operators at all of the West Coast ports were locked in an apparent standoff over negotiating terms of an expired labor contract. In many of the ports, including Portland, productivity slowed to a crawl as a result.

One of the port's largest shipping lines, Hanjin Shipping Co., informed Portland earlier this month that it would cease service effective March 9.

And then, on Feb. 20, the coalition representing the terminal operators announced that it had reached a tentative five-year agreement with the workers union.

Productivity at the other West Coast ports resumed a normal pace as everyone got back to work.

But not necessarily in Portland.

"Yes, I'm glad a contract is finally signed and it's closer to getting back to normal," said Shelly Boshart Davis, vice president of Bossco Trading. "But in Oregon, it'll be a new normal for us. I haven't quite figured it out yet."

Bossco Trading is a trucking and transit company based in Tangent that specializes in agricultural transport.

Hanjin's vacating the Port of Portland, Davis said, put Oregon exports in a uniquely frustrating position, despite the resolution of the labor issues.

The shipping company still services ports in Tacoma and Seattle. So for companies like Bossco to use Hanjin for their shipping needs, they will now need to truck their products an extra several hours away — and cross state lines to do it.

"It adds so many more problems," Davis said. "It's not nearby, and on top of it, we kind of feel like we outsourced our product to Washington. I like them as a neighbor, but taxes, revenue, jobs, all of these things we could be using in our local part and we're not. We're using Washington ports."

So how will this affect Oregon exports, especially the agricultural bounty coming out of the Willamette Valley?

In terms of dollars, it's too soon to tell. But Davis said she's hopeful that Oregon will be able to use the rest of 2015 to recover.

"We had problems in November and December, and problems in January and February," she said. "I guess those two months will offset each other. And as for the rest of it, I would say it looks pretty favorable. Looking ahead to see what these next 10 months will bring, I would say it'll be pretty similar to last year.

"I think it'll just be harder to do it," she added. "It'll require a different normal, now that everything has to go up through Washington."

Trucking products up to Washington is the most feasible option for Bossco, Davis said. But it might not be the best option for all of the Willamette Valley's agricultural producers — and it may not be the best option for ranchers in Eastern Oregon or other export producers across the state.

"In one word, it's uncertain," Davis said. "There's a lot of uncertainty going on."

lfosmire@StatesmanJournal.com, (503) 399-6709 or follow on Twitter at @fosmirel

2014 Oregon merchandise exports

$20.9 billion total

$8.2 billion, computer and electronic products

$6.4 billion of exports went to 20 countries in free-trade agreements with U.S.