Port of Fernandina Business Slumps — Can It Make Up the Lost Ground?

Commissioner Hill (right) questioned whether the port operator could overcome 2026 decline in business.

By Mike Lednovich/Editor

FERNANDINA BEACH — Cargo tonnage at the Port of Fernandina is down more than 22% through the first half of 2026, prompting questions Wednesday about whether the port can overcome the deficit and why it appears to be struggling while other Florida and Southeastern ports report stronger business.

The port handled 148,268 tons of cargo from January through June, down 43,112 tons, or 22.5%, from 191,380 tons during the same period last year, according to the monthly tonnage report presented to the Ocean Highway and Port Authority.

OHPA Commissioner Miriam Hill questioned Relay Terminals President Ted McNair about whether the port could erase the 43,112-ton deficit by year's end.

"So are we going to catch up, or are we going to close out down compared to last year?" Hill asked.

"So I'm going to half boldly say we'll catch up," McNair responded. "But, you know, TBD."

The biggest declines came in several of the port's traditional breakbulk cargoes. Lumber tonnage fell by 14,080 tons compared with the first six months of 2025, plywood and hardboard were down 21,383 tons, and kraft liner board declined by 10,518 tons. The port also handled no steel through June, compared with 4,796 tons during the same period last year.

Those losses were partially offset by a strong performance in wood pulp, which totaled 80,890 tons through June, an increase of 9,465 tons from the 71,425 tons handled during the same period last year.

Container business remained relatively stable. The port handled 26,409 tons of containerized cargo through June, down 1,440 tons from 27,849 tons a year earlier. Container throughput totaled 3,839 units, compared with 4,025 last year.

Other indicators also reflected the slowdown. The port recorded 32 vessel calls through June, nine fewer than the 41 during the same period last year. Dockage days dropped sharply from 158 to 87, while the number of rail cars declined slightly, from 859 to 829.

McNair said the outcome will depend on factors ranging from tariffs and fuel prices to economic conditions, consumer demand and the market for wood pulp, a commodity upon which the Port of Fernandina remains heavily dependent.

"A lot of this depends on tariffs, markets," McNair said. "You know, a lot of it depends on wood pulp."

He said the port had gotten some relief from tariff pressures only to face high fuel prices, declining consumer sentiment and a pullback in spending.

"That's why we're trying to diversify right now, because we're heavily dependent on wood pulp, which goes into paper, feminine products, medical products, that sort of thing," McNair said.

Pressed for a forecast on whether the port would recover by year's end, McNair added: "I'm hopeful. But that's the best answer I can give you."

OHPA Chairman Ray Nelson pointed to recent and upcoming shipments as signs that business may be improving.

"We're working our third G2 vessel next week. Bigger vessels, better cranes, more volume," Nelson said.

Nelson said one recent vessel carried 11,600 metric tons of wood pulp, while another was carrying approximately 10,000 metric tons. He said a Saga vessel expected in July would carry about 11,000 metric tons of wood pulp, compared with the approximately 7,000 metric tons normally handled.

"I'm hopeful, like Ted said, but these past couple months are showing a sign to be okay," Nelson said.

Hill, however, pushed the discussion beyond whether the port could make up its current tonnage deficit. She questioned why the Port of Fernandina's business remains volatile while other Florida and Southeastern ports appear to be experiencing stronger overall cargo volumes.

"It seems like overall volumes are up for Florida ports and for southeastern ports, but Fernandina is not up. Like, we are up and down," Hill said.

She questioned whether the fundamental problem was the port's specialized cargo mix and limited customer base rather than broader economic factors such as tariffs, which affect ports nationwide.

"Is it more that we're so specialized and we have such a small list of customers that somehow we're experiencing a different phenomenon?" Hill asked.

She added: "You lose one customer; you lose half the business."

McNair disputed that characterization but acknowledged the Port of Fernandina's niche position. He noted that many larger U.S. ports are heavily dependent on containers and roll-on/roll-off cargo, while some also generate significant cruise business.

"I would say that the Port of Fernandina Beach is very specialized. We're very niche," McNair said.

But McNair also acknowledged that the port's current business level is not where he wants it to be.

"I'm not going to sit here and say I'm where we want to be," McNair said. "I'm fighting like hell to get us to the next level, which is diversification, which is more vessel calls, which is, you know, higher-paying cargo."

"That's my goal every day," he added. "Words are just words, but that's our goal, is to try to build this port."