September POLA and POLB volumes impress with holiday shopping season coming soon

With the holidays rapidly approaching, it appears retailers are not quite done getting inventory set up and on the shelves in time for what is expected to be a fairly active shopping season. That much was evident based on recent data for September volumes issued by the Port of Los Angeles (POLA) and the Port of Long Beach (POLB).

Total POLB volumes were up 7.3 percent annually at 629,771 TEU (Twenty-Foot Equivalent Units) and marked the highest-volume September going back to 2007, which was the busiest year in the port’s history

Imports were up 10.2 percent at 339,343 TEU, and exports fell 12.1 percent to 118,412 TEU. Empties, which the port said are typically repositioned overseas to be refilled with goods, were up 19.1 percent to 172,016 TEU.

POLB officials said that September’s increase was attributable to goods being shipped in time for the holidays, adding that September imports were the third highest ever recorded at the port.

On a year-to-date basis, POLB volumes are up 1.7 percent at 5,089,046 TEU. Imports are up 2.6 percent at 2,636,532 TEU, and exports are down 3.2 percent at 1,222,493 TEU.

Total POLA volumes in September were up 9 percent compared to September 2013 at 775,133 TEU in what was the port’s busiest month going back to August 2006. POLA officials said this output was the byproduct of increased Peak Season volumes and larger vessels calling at the port. 

POLA imports, which are primarily comprised of consumer goods, were up 11 percent at 411,507 TEU, and exports headed up 0.20 percent to 150,679 TEU. Empty containers were up 12.24 percent at 212,947 TEU.

For the first nine months of the year, total POLA volumes are up 7.8 percent at 6,302,470 TEU. 

While these gains are impressive and reflective of positive prospects for the holiday shopping season and an improving economy, both POLA and POLB have been dealing with various issues related to high demand, truck and chassis availability, and larger ships calling on the ports, with many having 50 percent more cargo.

“We view strength in imports as incrementally positive for upcoming freight activity, potentially sustaining current truck and intermodal capacity constraints through 4Q14,” wrote KeyBanc Capital Markets analyst Todd Fowler in a research note. “While a variety of factors are likely contributing to stronger imports, we believe shippers are attempting to pullforward volumes given on-going port and rail congestion, as well as prepare for a late holiday rush similar to 2013. Combined with seasonal factors, we expect imports will trail off sequentially through year-end.”

These strong September volumes also correlate with analysis from the most recent edition of the Port Tracker report from the National Retail Federation and maritime consultancy Hackett Associates.

In assessing what is driving higher port volumes as the holiday shopping season arrives, the Port Tracker report cited a combination of increasing congestion at ports, the lack of a new labor contract between the Pacific Maritime Association and the International Longshore and Warehouse Union (ILWU) impacting West Coast port operations, and improving consumer confidence which have subsequently resulted in what are expected to be strong volumes as retailers endeavor to make sure they are prepared inventory-wise for the holiday shopping season.