Bermuda Container Line (BCL) is to continue to operate out of the port of New York/New Jersey after its owner Neptune Group decided to go back on its plan to switch to Philadelphia to cut costs.

The U-turn came after importers made clear their preference for New York, the port from which BCL has been operating since 1979, and the company saw an uptick in cargo volume, raising hopes that the economy has bottomed and demand for imported goods may be about to pick up.

Neptune Group declared its intention last November to move to Philadelphia and said that it aimed to complete the terminal switch by February.

Yesterday BCL, which operates the MV Oleander cargo ship, said it would continue to use the Maher Terminals in New Jersey until 2018.

“Following an in-depth review of revenue projections, together with additional customer pledges of support and the overwhelming demand from Bermuda importers to remain in the Port of New York/New Jersey, BCL has made an operational decision to continue service from its New York hub location,” BCL said in a statement today.

“This important decision will enable Bermuda’s importers to access the full range of global transshipment services while also allowing Bermuda’s consolidators the ability to continue operating from their existing northern New Jersey warehouse facilities.”

Neptune Group Ltd chairman John Wight said that the early signs of an improvement in the economy had played into the company’s decision.

“After 22 consecutive quarters of cargo decline, BCL experienced its first increase in cargo volume in the fourth quarter of 2013,” Mr Wight said.

“Business continues to be up through the first quarter of 2014. There are early signs that the recession may be bottoming out and the economy may be on the road to recovery.

“We have updated and modelled our revenue and related volume expense numbers. With the continued and increased support of our valued customers, along with

renegotiated stevedoring expenses, we can continue to offer service from the port of New York/New Jersey to Bermuda for the foreseeable future while providing adequate returns to our shareholders.”