POLB and POLA report slightly mixed October volumes

As was the case in September, October volumes at the Port of Los Angeles (POLA) and the Port of Long Beach (POLB) were mixed but still largely solid.

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 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.

Total POLA October volumes were down 1.5 percent at 704,588 TEU (Twenty-Foot Equivalent Units) compared to October 2014.

POLA imports, which are primarily comprised of consumer goods, were down 3.3 percent to 358,601 TEU, and exports fell off 14.7 percent to 134,963 TEU. Empties increased 13.1 percent to 211,023 TEU.

“This October’s volumes were slightly less than last October said POLA Executive Director Gene Seroka in a statement. “However, the past few months of volumes around and above the 700,000 TEU range show that our terminals, labor and supply chain partners are adjusting to the cargo surges and other fluctuations that come with the larger vessels that are now calling in L.A. – and that’s a good sign.”

POLA officials maintain that cargo owners are coming back to Los Angeles, with the port unmatched in speed to market, costs, infrastructure, labor (when it is fully operational like it has been since late February), and the handling of bigger ships.

“A lot of ports say they are big ship-ready. We are more than that: we are big ship-active,” he said. “We have had three 13,000 TEU ships at the dock simultaneously unloading here,” a port spokesman recently told LM.

Through the first ten months of 2015, total POLA volumes, at 6,824,212 TEU, are down 2.7 percent annually.

October POLB volume saw a 6.3 percent annual increase to 619,983 TEU en route to its best October performance in eight years and coming off of a strong third quarter, which port officials said stands as the best quarter in the port’s history. While October was strong for POLB, it was down compared to September’s 655,624 TEU and August’s 703,652, which POLB officials said at the time serves as a “clear sign” that strong customer confidence in the port is intact.

POLB imports in October fell 0.8 percent annually to 307,995 TEU, with exports up 6.5 percent at 128,308 TEU. Empties rose 20.8 percent to 183,681 TEU in October.

Addressing the strong export gains, POLB officials pointed to how shippers are looking to the port for reliable service, adding that the slight import decline serves as a sign that clothing and electronics and other consumer good retailers “stocked up early for the rapidly approaching shopping season,” that kicks off with Black Friday.

“We had an early peak in July and August, with much of the inventory for the holiday shopping season coming early. On the export side, we’ve seen increases for the past two months, as shipping lines choose Long Beach for its reliability and service,” said Port of Long Beach CEO Jon Slangerup. “Year to date, we’re up more than 5 percent, so 2015 is shaping up to be one of our best years ever.”

On a year-to-date basis through October, total POLB volumes are up 5.4 percent annually at 5,975,920 TEU, with imports up 2.6 percent at 3,022,607 TEU and exports down 5.1 percent at 1,274,725 TEU.