Agricultural exports continue to drive growth at Port of Oakland

Port of Oakland containerized fresh fruit and vegetable shipments have surged by 36 percent since 2013, according to data released today.  According to port spokesmen, further gains are likely as it adds capacity to handle temperature-controlled cargo.

“It’s a simple equation,” said the port’s communication director, Mike Zampa. “Growing Asian demand for high-quality U.S. farm goods plus added cargo-handling capacity equals more volume through Oakland.”

Approximately $6.1 billion worth of containerized fruit and vegetable shipments moved through Oakland in 2017. The volume equaled 135,000 20-foot containers (TEUs).  The port’s volume was less than 80,000 containers just four years ago.

“This is high-value cargo that has to be handled carefully and shipped promptly,” said Port of Oakland Maritime Director John Driscoll.  “Growth in our volume would indicate that we’re doing the job effectively.”

Exports accounted for 103,000 containers of Oakland’s 2017 fresh fruit and vegetable cargo volume.  That was a 44 percent increase from four years ago.  Fruit and vegetable imports jumped 16 percent. 

According to port spokesmen, oranges and grapes were among top exports.  Japan, South Korea and Hong Kong were leading export markets.

The data is watched closely because Oakland is considered one of the country’s most important agricultural gateways. 

There are two main reasons for this trend, said spokesmen.

First, Oakland is adjacent to major growing regions in the Central, Napa and Salinas valleys. Sencondly, Ag producers export through Oakland because it’s the last U.S. destination before outbound vessels head to Asia.  That means their cargo isn’t delayed at intermediate stops.

Statisticians for the Pacific Merchant Shipping Association (PMSA) recently noted that Oakland shipped 42.3 percent of America’s 2017 fruit and nut exports to China.  It handled 93 percent of wine exports.

The Agriculture Transportation Coalition (AgTC), meanwhile, has been warning shippers that possible retaliatory tariffs enforced by China on many perishable commodities may have an impact on exports in the coming months.

“Agriculture is vulnerable, because it will be a target in any new trade negotiations,” said Peter Friedmann, AgTC executive director.  “Furthermore, China and other Asian countries have many other options for sourcing.”

Barring any new regulatory barriers, Oakland said it expects fruit and vegetable shipments to grow because it’s improving the ability to handle temperature-controlled cargo.  Refrigerated export containers are now being delivered principally at night to Oakland’s largest marine terminal. 

This increases the velocity of handling and wait-time for sensitive cargo by avoiding busier dayside operations.  Oakland’s second-largest terminal is adding hundreds of electrical plug-in spaces for refrigerated containers this summer. 

As a consequence, it can safely store more perishable cargo until the containers are loaded on vessels.

Exports make up half of the Port of Oakland’s total cargo volume.  Farm goods account for 40-to-50 percent of the port’s total exports.