November volumes at Port of Los Angeles and Port of Long Beach are mixed

November volumes at the Port of Long Beach (POLB) and the Port of Los Angeles (POLA) were mixed.

Total November POLB volumes were up 2.1 percent year-over-year at 581,514 TEU (Twenty-Foot Equivalent Units), which marks its busiest November since 2007––before the Great Recession kicked in back in 2008. Imports were down 0.9 percent annually at 293,894 TEU, and exports saw a 14.5 percent annual decline at 129,960 TEU.  Empties jumped 30.2 percent to 157,570 TEU.

POLB officials said that October and November cargo tallies were flat, with retailers having moved most of their goods in the early autumn in advance of the holiday shopping season, which is typically defined as the months of November and December.

On a year-to-date basis through November, POLB total volumes are up 1.7 percent at 6.73 million TEU.

Total POLA volumes in November decreased 3 percent compared to November 2013 at 663,346 TEU, which was also down sequentially from October and November at 715,682 TEU and 775,133 TEU, respectively.

POLA imports, which are primarily comprised of consumer goods, were down 2.7 percent at 333,153 TEU, while exports fell 16 percent to 150,568 TEU. Port officials said the drop in exports in November and for all of 2014 are largely due to weak global demand and a stronger U.S. dollar, which makes U.S. goods more expensive. Empties saw a 10.6 percent annual gain at 663,346 TEU.

Year-to-date, total POLA volumes are up 7.5 percent at 7,681,498 TEU, which the port said reflects a combination of Peak Season having ended and larger vessels calling at the port.

With volumes down at the two largest ports in the U.S., these declines to a degree represent a confluence of factors, including sluggish export growth, increased congestion due to higher demand, and the ongoing strained labor negotiations between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU), whose contract expired on July 1.

As previously reported, these port congestion issues do not appear to be abating with it for various reasons, including the aforementioned labor contract between the Pacific Maritime Association and the International Longshore and Warehouse Union (ILWU) and increased demand, as well as a lack of available chassis, and recent news that Teamsters port truck drivers at POLA and POLB are striking against drayage operator Pac 9 and TTSI over what the Teamsters say is the continued misclassification of drivers as “independent contractors.”

POLA Executive Director Gene Seroka recently said that while increasing cargo volume is the port’s objective, the current congestion circumstances in recent months have created delays for cargo owners that must and will be resolved.

POLA officials also said that a team led by Seroka have facilitated recent meetings that resulted in a new chassis distribution model to be implemented on February 1.  And the port said that POLA officials are working with stakeholders on short and long-term solutions to improve operational efficiencies and cargo velocity throughout the logistics chain, noting that information technology solutions will be a central theme of the required design improvements.

POLA Director of Communications Philip Sanfield told LM that while the drop in exports was large, it represents a trend that has been happening throughout the country, with the value of the U.S. dollar having a lot to do with it.

“We are pleased that the port is up 6.5 percent year-to-date, but the congestion remains an issue here as we end the year, and it has been a struggle to the finish,” he said. “We are really working hard to make sure that as we get into 2015 that we partner with the port’s stakeholders to figure out these issues, because we are concerned about diversion and need to earn the business here every day and in some cases will need to earn the business back for those that have diverted or have plans to because of the congestion issues on the West Coast.”

When asked about the labor situation between PMA and ILWU, he said POLA is eagerly waiting for both sides to make progress and move positively forward. With the congestion issue and the labor issue combined, he explained it makes things more complex on a cumulative level as it has been nearly six months since the labor contract expired and been subsequently followed by what can best be described as tense or staled negotiations.