The impact of the liner shipping industry on the U.S. economy

Key Chapter Title List

1. Introduction
2. Overview of the Liner Shipping Industry
3. Economic Contribution of Port Operations
4. Economic Contribution of U.S. Industry Use of Imports
5. Summary of Contributions to Key Economic Indicators
6. Aggregate Contribution by Economic Impact Cycle
7. Contribution of Port Operations by Economic Impact Cycle
8. Contribution of Industry Import Use by Economic Impact Cycle
9. Economic Impact Analysis Methodology
10. Core Economic Impact Concepts and Measurement Indicators
11. Construction of Input Data for the Economic Impact Model
12. Glossary

Document Introduction

This report was independently completed by S&P Global Market Intelligence and commissioned by the World Shipping Council and the Pacific Merchant Shipping Association. It aims to comprehensively assess the annual quantitative impact of the liner shipping industry on the U.S. economy. The report focuses on the direct, indirect, and induced economic effects generated by the industry through two core channels: U.S. port operational activities and U.S. businesses utilizing imported inputs for production and services. The evaluation employs key economic indicators, including economic activity (sales), contribution to Gross Domestic Product (GDP), employment, wages, and government revenue.

The report first outlines the critical role of the liner shipping industry in global trade. By providing regular maritime cargo transportation services, connecting global suppliers and customers, the industry not only enables U.S. businesses and consumers to access goods unavailable domestically but also expands overseas sales markets for U.S. companies. Its economies of scale help reduce commodity costs, and its high load factor results in lower carbon emissions per ton-mile compared to other modes of transport. Based on 2023 data, the study found that the liner shipping industry carried $1.5 trillion worth of U.S. trade, accounting for 30% of total U.S. trade and 64.4% of maritime trade.

Regarding port operations, the report quantifies the terminal operations directly related to the industry and the broader economic activities they trigger. The analysis shows that in 2023, the liner shipping industry directly supported over 169,000 port jobs and generated $77.1 billion in business revenue. When considering extended supply chains and broader economic activities (i.e., indirect and induced effects), the total impact expanded to 631,500 jobs, a $117.3 billion contribution to GDP, and $27.0 billion in federal and state taxes. This equates to each direct port job supporting an additional 2.7 jobs across the entire U.S. economy and generating nearly $700,000 in GDP.

Another core part of the report analyzes the economic impact derived from U.S. businesses using imported goods transported by liner shipping. Of the $1.1 trillion in U.S. imports transported by liner, approximately $490 billion (44%) consists of intermediate inputs such as components, supplies, and raw materials used by businesses in their production processes. This import expenditure accounts for about 1.5% of U.S. business operating costs and directly drives $628 billion in economic output. Through economic multiplier effects, this ultimately supported 5.8 million jobs, a $1.0 trillion contribution to GDP, and $235.5 billion in federal and state income taxes in 2023. Overall, for every $1 million U.S. businesses spend on imported intermediate goods, 11 jobs are supported and $2.1 million in GDP is created.

The report summarizes the total contribution of the liner shipping industry to the U.S. economy through the aforementioned two channels via detailed tables: collectively driving economic activity (output) of $2.0 trillion, contributing $1.1 trillion to GDP, supporting 6.4 million jobs, paying $442.5 billion in wages, and generating $262.5 billion in government revenue (federal and state income taxes). The report further decomposes these contributions by the three impact cycles: direct, indirect, and induced.

The methodological foundation of this analysis is the U.S. Input-Output (I-O) model, specifically a Social Accounting Matrix (SAM) model constructed based on the U.S. Bureau of Economic Analysis (BEA) 2023 Input-Output Accounts data. The report details in the appendix the application of the Leontief inverse matrix in economic impact analysis and the interaction mechanisms of the three economic impact cycles: direct expenditure, indirect supply chain activities, and induced household spending. Data sources integrate U.S. official trade statistics, Organisation for Economic Co-operation and Development (OECD) inter-country input-output tables, and S&P Global's proprietary trade analysis and industry data assets, ensuring the professionalism and reliability of the analysis.