Port Drayage Alert: Savannah GPA Phase III Construction Starting H2 2026

Savannah Port Phase III: Construction Timeline & Impact

The Georgia Ports Authority's Phase III expansion—a $1.3 billion investment in cranes, dock infrastructure, and rail capacity—officially breaks ground in July 2026. The project spans 24–30 months and will eventually add 1.2 million TEU of annual throughput to Savannah's already busy Port of Savannah, making it the third-largest U.S. container port by capacity.

But construction comes with near-term pain. Drayage carriers operating on the Savannah to inland Georgia/Florida distribution network will face:

• Port congestion during crane installation (July–October 2026)
• Lane closures and realignment of container yard operations
• Capacity constraints on inbound/outbound drayage movements
• Temporary diversions to competing ports (Charleston, Jacksonville) likely to ease congestion

These constraints will push drayage rates 6–9% above baseline. For a shipper with 500 FEU movements annually through Savannah (import and export combined), a 6–9% rate increase translates to $15,000–$22,500 in additional annual cost.

Phase III Timeline & Capacity Impact

Which Shippers Are Most Affected?

High-volume Savannah port users face the biggest exposure:

• High volume at Savannah (1,000+ FEU annually): Cost exposure $30,000–$60,000 over the construction window
• Apparel/consumer goods importers: Asia-to-Savannah routes will see elevated congestion during peak fall/winter months (Aug–Nov 2026)
• Export agricultural freight: Perishables requiring rapid gate turnaround will face delays during yard reconfigurations
• Regional LTL/drayage operators: Margin compression as Savannah port costs rise and competitive routing to Charleston becomes necessary

Shippers with flexible routing (e.g., willing to use Charleston Port or Jacksonville Port during construction) can mitigate cost impact by diversifying in H2 2026.

Strategic Responses: Three Options

Option 1: Lock Savannah Drayage Contracts Now. Negotiate 12-month rates for Savannah drayage covering H2 2026–H1 2027. Current rates ($185–$220 per FEU for typical moves) are at baseline. Lock them before carriers begin surcharging for construction.

Option 2: Shift Volume to Alternative Ports. Charleston (CHS) and Jacksonville (JAX) drayage rates are currently comparable to Savannah. Consider balancing port utilization to reduce Savannah exposure during the construction window. JAX has particularly favorable container handling and rail connectivity through CSX.

Option 3: Negotiate GRI Deferral Clauses. Propose a contract amendment capping drayage rate adjustments (GRI) at 3–4% through Q4 2026, then resuming normal escalation in 2027. Carriers may accept this for committed volume.