June and year-to-date volumes for POLB and POLA are mixed

Volumes for the Port of Los Angeles (POLA) and the Port of Long Beach (POLB) were mixed for month of June and for the first half of the year but not to a significant degree, according to data respectively issued by the ports last week.

POLA and POLB are the two largest North American ports, and they collectively account for more than 40 percent of U.S. imports. As previously reported, West coast port volumes, especially in first half of 2015, had been uneven, as ports had to work through the backlog caused by the nine-month West Coast port labor dispute between the PMA and ILWU, which reached a resolution in the form of a new contract agreement that was reached in the spring of 2015.

Total June POLA volume at 676,006 TEU (Twenty-Foot Equivalent Units) was off 6.3 percent annually, following May’s 770,409 TEU, which was the busiest May in the port’s history.  

Loaded POLA imports in June were off 3.5 percent annually at 355,622 TEU, and loaded exports dropped 2.1 percent increase at 140,651 TEU. Empty containers fell 14.2 percent at 179,822 TEU.

Even with June’s declines, POLA volumes through the first six months of 2016 were up 5.9 percent annually at 4,133,575 TEU compared to 3,903,521 TEU for the same period in 2015.

“We’re encouraged with year over year growth in the first half of 2016, even though June was not as robust as the same period in 2015 due to industry trade patterns,” said Port of Los Angeles Executive Director Gene Seroka in a statement. “We are hard at work with our stakeholders optimizing supply chain efficiencies, building unparalleled infrastructure and listening to our customers.”

And POLA Media Relations Manager Phillip Sanfield told LM that the nearly 6 percent annual growth rate for the first half of 2016 was somewhat surprising, explaining that the port had been forecasting 2-4 percent growth for calendar year 2016.

“How volumes fare over the second half of 2016 will have much to do with the vessel sharing services,” he said. “Those services can shift at any time, and that is a significant factor looking at potential cargo volumes for the next six months. With all the sharing services in play, it’s a bit more difficult to forecast than in previous years.”

The main vessel sharing services he cited were G6, Ocean 3 and 2M.

Volumes at POLB was up 3.4 percent in June at 603,339 TEU.

Imports were up 313,526 TEU at 5.5 percent, and exports were flat at 128,099 TEU. Empties saw a 2.2 percent gain at 161,714 TEU. On a year-to-date basis, POLB volume is down 0.6 percent at 3,285,202 TEU.

While warehouse inventory levels in the U.S. have stagnated at fairly high levels since 2014, which led to difficult ocean cargo market conditions, POLA said that in recent months West Coast ports have started to see import gains. 

“Our improving cargo volumes reflect the confidence that customers continue to have in the Portof Long Beach,” said CEO Jon Slangerup in a statement. “This is an encouraging sign despite soft consumer demand, high inventory levels and an evolving maritime industry as shipping lines continue to consolidate vessel services.”