In a remarkable display of resilience, the Port of Los Angeles has reported a significant increase in container volume for November 2024, achieving a total of 884,315 twenty-foot equivalent units (TEUs). Typically, November marks a period of reduced activity following the peak shipping season, yet this year's figures exhibit a striking 16% rise compared to November 2023, and are 15% higher than the port's five-year average for the month.
To date, the port has processed 9,375,735 TEUs this year, which represents a 19% increase from the previous year and exceeds the five-year average by 5%. Gene Seroka, Executive Director of the Port of Los Angeles, remarked in a media briefing, “We are well on pace to exceed 10 million container units for only the second time in our 117-year history.”
November's figures showed loaded imports reaching 458,165 TEUs, up 19% year-on-year, while loaded exports increased by 11% to 124,117 TEUs. These gains have been partially attributed to the strength of the U.S. economy, which has buoyed consumer spending, recorded at a 0.7% increase in November, exceeding the predictions of many analysts. Seroka cited data from the National Retail Federation, indicating that around 200 million Americans—about three-quarters of all adults—engaged in shopping at near-record levels during Black Friday and Cyber Monday, suggesting a positive trend for the remainder of the holiday shopping season.
Seroka highlighted geopolitical factors as contributors to the increased cargo movement at the port. Ongoing labour contract negotiations on the East and Gulf coasts have generated uncertainties, prompting importers to frontload their shipments as a protective measure against potential tariffs under the incoming Trump administration. Furthermore, security concerns in the Red Sea have added to the complexities surrounding cargo transportation.
An increase in empty containers, which surged by 13% to 302,033 TEUs, reinforces the anticipation of further imports on the horizon. Efforts to boost exports have gained momentum, with Seroka recently meeting with U.S. Agriculture Secretary Tom Vilsack to explore strategies aimed at enhancing U.S. exports through the port, making use of the surplus of empty containers.
In an innovative development, ConGlobal has opened a container depot at the Wonderful Industrial Park in California's Central Valley, which is projected to expedite export processes through Los Angeles, supported by forthcoming rail service. To enhance the management of empty containers, the port has implemented a new truck appointment reservation system at four of its six container terminals as part of its expanded Port Optimizer initiative. Early results have demonstrated positive outcomes, according to Seroka.
Looking ahead, Seroka provided forecasts for December, suggesting overall volumes could approach 900,000 TEUs, potentially setting a new record for the month. This increased activity is anticipated as factories in Asia ramp up production ahead of the Lunar New Year holiday. However, a slowdown in cargo movement is expected in late February and early March, pending further information on trade policy.
During a question-and-answer session with the media, Seroka addressed a variety of challenges facing the port. He emphasised the need for a swift resolution to the East Coast port labour disputes, advocating for fair bargaining while acknowledging that automation at port terminals remains a contentious issue.
“Automation at the Port of Los Angeles spans two terminals: TraPac at Wilmington and Pier 400, the APM Terminals facility," Seroka noted, highlighting that three of the twelve terminals now feature an automated environment. While he acknowledged mixed results regarding productivity, he pointed out that longshore productivity in the Los Angeles-Long Beach area has surged by approximately 32% over the past decade.
Furthermore, Seroka discussed the evolving trade dynamics with Mexico, noting an increase in manufacturing inputs flowing into the region, rather than finished products from China. This trend has positively impacted trade routes through Los Angeles, including cargo transported to Mexicali and Juarez, as well as major crossings into Texas.
The developments at the Port of Los Angeles illustrate significant growth and adaptation within the global shipping landscape, underscoring the multifaceted factors influencing port operations and cargo movement.
Source: Noah Wire Services