POLA and POLB see volume growth in May

Both the Port of Los Angeles (POLA) and the Port of Long Beach (POLB) saw volume gains in May, according to data respectively issued by the ports this 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 April POLA volume at 770,409 TEU (Twenty-Foot Equivalent Units) saw a 10.88 percent annual increase for the busiest May in the port’s history, topping May 2012, which was the previous high at 732,352 TEU.

Loaded POLA imports in May were up 15 percent annually at 400,765 TEU, and loaded exports saw a 6.3 percent increase at 162,487 TEU. Empty containers were up 7.09 percent at 207,156 TEU. 

On a year-to-date basis through May, total POLA volumes are up 8.7 percent compared to the same period in 2015 at 3,457,569 TEU.

“The strong growth both on the import and export side is encouraging as we continue to explore ways to improve supply chain efficiencies,” said Executive Director Gene Seroka in a statement. “The unwavering efforts of our supply chain partners, including organized labor, has had a significant impact on our success.”

POLB volumes were up slightly, with a 0.8 percent annual increase at 640,566 TEU. But despite the modest annual increase, this represented the second highest-volume May in the port’s history, second only to May 2006 at 644,066 TEU.

Imports saw a 1 percent gain at 330,639 TEU, and exports saw a 2 percent increase at 138,594 TEU. Empties were flat at 171,333 TEU.

On a year-to-date basis, POLB volumes are down 1.6 percent at 2,681,863 TEU. Imports are off 1.5 percent annually at 1,359,951 TEU, and exports are down 0.3 percent at 608,358 TEU.

POLB officials observed that May volumes are in line with trends highlighted by the National Retail Federation that indicate elevated inventories remain intact at U.S. stores and warehouses, which has subsequently quelled demand for waterborne trade.

And it added that the annual comparisons to 2015 remain difficult, due to the uneven volume patterns caused by port activity getting back to normal trends upon the completion of the West Coast port labor situation that led to port congestion in early 2015, which was resolved last spring.

In a research note, Todd Fowler, an analyst at KeyBanc Capital Markets, said POLA and POLB volumes were above his firm’s expectations, considering elevated inventories.

“Our recent call with the Port of Los Angeles suggests low single-digit increases in imports ahead of the fall peak, and as a result, we expect some moderation from May’s strength, but for comparisons to remain positive supporting truck and rail volumes near term,” he wrote.