The old thesis that August traditionally is one of the biggest shipping months of the year was tested by the Port of Los Angeles (POLA) and the Port of Long Beach (POLB) based on August volumes released by the ports yesterday.
Volumes at the ports were again mixed in August. May and June saw higher than usual seasonal volumes, due to the West Coast port labor situation, and July was down as retailers had completed filling inventories for back-to-school shopping.
Total POLB volumes dropped 9.1 percent in August at 573,083 TEU (Twenty-Foot Equivalent Units) compared to August 2013, which the port said was its highest-volume month since 2007.
Imports were down 8.2 percent at 300,851 TEU, and exports fell 17.7 percent to 126,856 TEU. Empties were down 2 percent at 145,376 TEU.
For the first eight months of the year, POLB volumes are up 1 percent at 4,459,274 TEU.
Imports are up 1.6 percent at 2,297,188 TEU, and exports are down 2.2 percent at 1,104,080 TEU.
POLB officials said that August volumes reflect early shipping activity on the behalf of importers this year, with declining August volumes coming on the heels of a surge in activity between April and June, as many retailers shipped products earlier than usual prior to the July 1 contract expiration between the Pacific Maritime Association and the International Longshore Warehouse Union. A new agreement has not been reached, but port activity has not been impacted with the parties continuing to negotiate.
While POLB volumes were down, August volumes at POLA were very strong, with the port reporting its best month since August 2010. Total POLA volumes in August were up 6.7 percent compared to August 2013 at 757,702 TEU.
POLA imports, which are primarily comprised of consumer goods, were up 7.8 percent at 383,551 TEU, which the port said represents Peak Season volumes and larger vessels calling at the port. Exports headed up 6.16 percent to 163,248 TEU. Empty containers were up 5.3 percent at 205,903 TEU.
For the first eight months of the year, total POLA volumes are up 7.61 percent at 5,527,337 TEU compared to the same period in 2013.
“A combination of larger vessel calling at the Port of Los Angeles as well as the beginning of peak shipping season has led to a particularly strong August here in Los Angeles,” said POLA Director of Media Relations Phillip Sanfield in an interview. “We haven’t seen a month with 757,000 TEUs since August 2010, and before that, our peak year in 2006. We’re cautiously optimistic that this bodes well for the remainder of the peak season ahead.”
In the most recent edition of the Port Tracker report from the National Retail Federation and Hackett Associates, the report noted that retail shippers concerned by the lack of a West Coast longshoremen’s contract will continue to bring merchandise into the country at above-average levels this month but volume will drop from the record set in August.
Hackett Associates Founder Ben Hackett wrote in the report that he continues
to project continued growth in demand with rising imports in North America.
“Our projection for the full year is 6.4 percent, with the east coast doing better than the west coast mainly due to labor issues with a shift in coastal share to 38 percent for the east coast,” he noted.