On May 19,, the Port of Los Angeles (LA) released data for April this year. Due to high retailers' inventories, slowing consumer spending, and the transfer of goods to the US East and US Bay ports, the port of Los Angeles and the port of Long Beach (LB) imported heavy containers in the first four months of this year fell sharply.
Los Angeles Port's April container throughput down 22.45 percent
April, the Port of Los Angeles handled 688100 TEU of containers, down 22.45 percent year-on-year. Among them, imported heavy boxes fell 24.74 percent to 343700 TEU and exported heavy boxes fell 11.69 percent to 88200 TEU. In addition, the number of empty containers passing through the Port of Los Angeles fell 22.55 percent to 256200 TEU.
In the first four months of 2023, the port of Los Angeles container throughput 2.5252 million TEU, down 29.25 percent.
Gene Seroka, executive director of the Port of Los Angeles, said at a media briefing that the global economic slowdown, retailer inventory backlogs, and protracted labor negotiations at the Port of Los Angeles have all contributed to the slowdown in throughput. If economic conditions improve and a labor agreement is reached, this will help improve throughput in the second half of the year. Anytime, LA is ready for a cargo surge.
Gene Seroka pointed out that the port of Los Angeles container throughput has been two consecutive year-on-year growth. In March 2023, container throughput at the Port of Los Angeles increased 28% from February, and in April it increased 10% from March. But 2023 throughput is unlikely to come close to 2022 9.9 million TEU.
He said: "It is too early to predict, but the current estimate is 9 million TEU below."
Gene Seroka said that once the labor agreement is reached, it may take several months to attract the container cargo currently transferred to the US East to the US West port.
He said, "Once we have a labor agreement, we will see how much and how quickly the goods will be transferred back to the Spanish port, and we will do everything we can to bring them back here. Retailers tell me that adjustments usually take 30 to 45 days, but nothing is guaranteed. So we will have to go all over the country, visit as many customers as possible, and make sure to attract as much as possible every pound of goods."
Long Beach Port's first four months container throughput 2.3774 million TEU, down 27.55 percent
The Port of Long Beach (LB) handled 656000 TEU of containers in April, down 20.06 percent year-on-year and up 8.64 percent month-on-month. Imports of heavy containers fell 21.80 per cent to 313400 TEU, while exports of heavy containers increased slightly by 0.65 per cent to 122700 TEU. In addition, the number of empty containers passing through the Port of Long Beach fell 26.2 percent to 219900 TEUs.
In the first four months of 2023, Long Beach Port's container throughput reached 2.3774 million TEU, down 27.55 percent.
It is worth noting that the port of Long Beach in March compared with February container throughput increased by 11.07, April container throughput also increased by 8.64.
The Port of Long Beach said April's container throughput slowed because retailers continued to clear inventory, consumer spending slowed and shippers shifted routes from the US-West to the US-East and US-Gulf.
Long Beach Port Executive Director Mario Cordero said, "As consumer spending slows, port cargo flows are now close to pre-outbreak levels. The second half of 2023 is expected to see slow growth as retailers continue to clear excess inventory."
Long Beach Port Council Chairman Sharon L.Weissman said, "Our facilities, dockers, terminal operators and staff continue to make this the premier gateway for trans-Pacific cargo transportation. As shippers seek the port of choice for top-notch customer service, expect freight volumes to eventually rebound."
Source: Shipping Industry