POLA and POLB see solid September volumes

September volume growth was in the cards for both the Port of Los Angeles (POLA) and the Port of Long Beach (POLB), according to data respectively issued by each port.

POLA reported that total September volume, at 748,440 TEU, was up 5% annually, marking its second consecutive month of annual growth.

POLA imports, at 392,608 TEU, which represented a 14% annual increase, as well as the port’s biggest annual gain in more than two years. POLA Executive Director Gene Seroka said on a media conference call that credit for the import gains goes to the American consumer showing remarkable resiliency in the face of higher interest rates and elevated prices. Seroka also cited September retail sales up 0.7% in September and the ongoing growth of the U.S. job market as a key source of strength for household spending and the broader economy, helping to drive import volumes.

September POLA exports, at 120,635 TEU, which marked a 55% annual increase, growing for the fourth consecutive month and the fifth month exports have topped the 100,000 TEU mark in a month. Seroka pointed to export volumes being paced by gains in recyclables and animal feed, which were each up more than 30%, as well as vehicle parts going back to Asia up 84%. And with imports from Asia slower, he observed that has resulted in less demand for empty containers, with September’s tally down 19%, to 235,197 TEU.   

Through September, total POLA volume, at 6,398,126 TEU, is down 18.6% annually and is down 12% compared to the five-year average. In looking at the former figure, Seroka noted that it is reflective of how total imports to the U.S. from Asia are down 18% in 2023, coupled with warehouse inventories remaining elevated heading into the holiday season, and also a shift in post-pandemic consumer spending, with consumers spending more of their income on services and experiences and less on store products and online purchases.

“Looking ahead, October looks flat versus last year, while our data indicates we'll see a volume uptick in both November and December,” he said. “So, I'm confident that Q4 will be better than last year. I expect to finish 2023 in the 8.6 million TEU range. That would be a decline of about 13% year-on-year, which is an unbelievably good comeback from where we stood in quarter one. You may remember back then we were down 32%. In the meantime, we will continue our efforts to return and build market share through Los Angeles. We're reminding cargo owners and shippers every day that Los Angeles is the fastest and most efficient route for Asia trade. All our vital statistics that I monitor, including cargo velocity, dwell times, and vessel arrivals are in good shape today, and we have room to grow. And with the long-term labor contract in place, the table is now set to scale up as demand increases.”

POLB data: The Port of Long Beach reported that September marked its highest-volume September on record, primarily driven by consumer demand for holiday-related goods, and the recent ratification of the labor West Coast labor deal between the Pacific Maritime Association and the International Longshore Warehouse Union on August 31, following the reaching of a tentative agreement on June 14.

POLB September volume came in at 829,429 TEU, increasing 11.8% annually, and topping the previous September high in 2020 by 78,849 TEU. It also marked the port’s first annual cargo increase in 14 months.

POLB imports, at 408,926 TEU, headed up 19.3% annually, and exports, at 101,248 TEU, were off 10.3%. Empty containers rose 11.5%, to 319,255 TEU.

On a year-to-date basis through September, POLB volume is down 20.7% annually, at 5,822,666 TEU, with the port observing that 2023 volume has been in line with pre-pandemic levels, as POLB moved more than 5.7 million TEU through September 2019. Imports, at 2,753,388 TEU, are down 22.8%, and exports, at 979,878, are off 7.1%.

And, for the third quarter, POLB processed 2,089,990 TEU, which marked a 10.5% annual decrease.

“Consumer confidence is on the rise and shippers can rely on the Port of Choice now that we have a ratified contract in place with our waterfront workforce,” said Port of Long Beach CEO Mario Cordero in a statement. “We look forward to a moderate rebound in cargo volume through the end of the year.”