Subscribe to our free, weekly email newsletter!


June volumes for Port of Long Beach and Port of Los Angeles are a mixed bag

By Jeff Berman, Group News Editor
July 16, 2013

June volumes at the Port of Los Angeles (POLA) and the Port of Long Beach (POLB) appear to be in line with the overall consensus that economic growth is moving along at a slow pace, even with some positive developments in the automotive and housing sectors.

POLA continues to feel the effects of volumes being been negatively impacted due to a new service line between ocean carriers MSC and CMA CGM that moved from POLA to neighboring Port of Long Beach (POLB) having recently commenced, with both carriers having established hubs at POLB, with vessels calling on POLB. MSC is sharing a POLB hub with COSCO and MSC is in a terminal sharing arrangement with Hanjin at POLB.

Total June volume at POLA was down 7.2 percent annually. Imports, which are primarily comprised of consumer goods, came in at 353,930 TEU—decreased 7.2 percent, and exports, which are primarily comprised of raw materials, at 174,418 TEU—were down 15 percent. Empty containers—at 170,122 TEU—were down 1 percent.

For the first six months of 2013, overall container volumes at POLA decreased 7.46 percent—or 299,244 TEU—compared to the same period in 2012 to come in at 3,710,959 TEU.

The Port of Long Beach saw modest annual gains in June, with total volumes up 1.8 percent at 565,476 TEU.

Imports saw a 1.8 percent jump to 565,476 TEU, and exports were up 0.1 percent at 133,800 TEU. Empties saw a marginal gain, rising by only 44 to 141,228 TEU.

On a year-to-date basis, POLB volumes are up 14.2 percent through the first six months of the year compared to 2012. During this period, imports are up 10.1 percent at 1,683,258 TEU, and exports are up 10.1 percent at 842,289 TEU. Empties are up 14.8 percent at 741,910 TEU.

POLB officials noted that larger ships began calling more frequently at the Port starting in mid to late 2012, and June 2012 was the top month for imports that year.

These relatively sluggish-to-moderate volumes at these prominent West Coast ports reflect how consumer demand, which was increasing in recent months, appears to have leveled off to a certain degree.

That was reflected in June retail sales numbers issued yesterday by the Department of Commerce and the National Retail Federation, too, which indicated that retail sales for the month were up 0.4 percent and 0.6 percent, respectively, compared to May.

What’s more, the Port Tracker report from the NRF and Hackett Associates issued last week explained that barring a sudden shift in economic activity, United States-bound import activity is expected to remain along its current trend lines of slow growth.

“Consumers continue to maintain a modicum of confidence and importers…have been building up their inventories,” wrote Ben Hackett, Hackett Associates Founder in the report. “The impact of the ‘sequester’ budget cuts is making its mark with reduced GDP in the second quarter but it remains well in positive territory and does not suffer from the same problems we see in Europe.”

But that does not mean everything is going great either, he cautioned, telling LM that U.S. Consumer demand still remains weak at a 1 percent growth rate even though the GDP is slightly above 2 percent.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Information abounds about the growing trend of electric lift trucks and the advantages and disadvantages of the electric solution. Amid all of the information from so many sources, what's the truth about electric lift trucks? This complimentary white paper breaks through the clutter to review why electric lift trucks are gaining in popularity and also to review their challenges, as well as their economic and environmental benefits.

Three weeks after initiating a coordinated series of slowdowns that have mired the major West Coast ports of Tacoma, Seattle, Oakland, Los Angeles and Long Beach, the ILWU has pushed away from the bargaining table.

DHL has released the third edition of its Global Connectedness Index (GCI), a detailed analysis of the state of globalization around the world.

The truck driver shortage is worsening, threatening the trucking industry’s ability to serve the nation’s supply chains. The shortage will almost certainly cause fleets’ costs to increase and shippers’ rate to continue to rise.

The Agriculture Transportation Coalition has asked the Administration to bring in a federal mediator to help resolve the negotiations, and if a strike or lockout occurs, the AgTC advocates the rarely-invoked Taft-Hartley Act.

Article Topics

News · Port of Long Beach · POLA · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA