Volumes were decidedly mixed at the Port of Los Angeles (POLA) and the Port of Long Beach (POLB) in July.
As previously reported, West coast port volumes, especially earlier in the year, had been uneven, as ports had to work through the backlog caused by the nine-month West Coast port labor dispute between the Pacific Maritime Association and the International Longshore & Warehouse Union, which reached a resolution in the form of a new contract agreement that was reached earlier this year.
What’s more, the ports are now facing difficult annual comparisons, due to the fact that a year ago port throughput was especially high in advance of the pending expiration of the labor contact at that time. During the months leading up to the contract, many shippers moved large amounts of cargo earlier than usual due to concerns over the labor negotiations.
Total POLA volumes in July dropped 2.5 percent annually to 699,127 TEU (Twenty-Foot Equivalent Units).
POLA imports, which are primarily comprised of consumer goods, decreased 3.5 percent compared to July 2014 at 350,627 TEU, and exports saw a 16.4 percent annual dip to 136,402 TEU. Empties rose 11.2 percent at 212,098 TEU.
On a year-to-date basis through July, total volumes are down 3.5 percent at POLA at 4,602,648 TEU, with annual volumes down in five of the first seven months of 2015.
Volumes at POLB were very strong in July, according to port officials.
Total volumes at POLB were up 18.4 percent annually in July at 690,244 TEU, which is a new record-high for monthly volume for the port, with volumes up in four of the last five months on the heels of a slow start to the year.
July POLB imports were up for the fourth time in five months, rising 16.2 percent at 345,912 TEU, which POLB said serves as an indication the U.S. economy is seeing growth, with a strong dollar helping retailers to order more stock, coupled with the National Retail Federation forecasting 3-to-5 percent gains for back-to-school and holiday season shopping. And exports saw a 15.9 percent boost to 143,875 TEU, with POLB officials noting that those export gains occurred in spite of a strong dollar, which has made U.S. exports fairly expensive abroad.
Through July, total POLB volumes are up 2.8 percent annually at 3,996,661 TEU, with imports up 1.4 percent at 2,023,442 TEU, and exports down 9.7 percent at 882,009 TEU.
“July [POLA and POLB] imports were modestly ahead of our expectations, with the sequential increase slightly stronger than expected especially considering some on-going share shift to Eastern and Gulf ports, with year-over-year increases partially reflecting easier comparisons,” wrote Todd Fowler, an analyst at KeyBanc Capital Markets. “Looking ahead, we continue to anticipate a portion of volumes to revert back to Western ports helping comparisons, as well as seasonal build into the peak fall shipping season.”