It was a banner July for the Port of Los Angeles and Port of Long Beach, which both set records for the month and vastly trumped last year’s figures.
The ports combined to process more than 1.82 million containers of cargo in July, surpassing last year’s count by nearly 560,000. The latest numbers vault L.A. to being 18% ahead of last year’s pace and Long Beach to being 20% ahead.
The consensus among leadership was that manufacturers were getting ahead of what is traditionally the peak shipping season as summer ends, in preparation for the fall and winter holidays.
“We’ve seen an influx of year-end holiday goods coming across our docks a bit earlier than usual to avoid any risk of delay later in the year,” Port of L.A. Executive Director Gene Seroka said at this month’s media briefing. “These goods – think toys, electronics and clothing – are arriving at the same time as more typical back-to-school, fall fashion and Halloween merchandise. An early peak season has helped to boost volumes here in Los Angeles.”
Big numbers in July
Broken down, the Port of L.A. processed 939,600 total TEUs – 20-foot-equivalent units, essentially a typical shipping container – in July, representing a 37% increase from last year. Long Beach, meanwhile, handled 882,376 TEUs, up by 52.6%.
Of L.A. containers, 501,281 were import TEUs – just the fourth time the port has ever exceeded 500,000 import containers, Seroka noted – while 114,889 were export TEUs. Long Beach processed 435,081 import TEUs and 104,834 export TEUs.
On top of the usual market demands, other factors are playing a role in driving cargo freighters to the San Pedro Bay. In an ironic reverse from last year, ongoing labor negotiations on East Coast ports – which had previously advanced their own facilities in time to reap the benefits of West Coast labor issues in 2022 and 2023 – are pushing shippers to L.A. and Long Beach, Seroka said. Additionally, labor talks with Canadian rail workers have the potential to impede the flow of cargo from British Columbia ports into the U.S. And there of course remains the missile and drone attacks against cargo ships entering the Red Sea from Houthi terrorists in Yemen.
“Importers have told me that with issues in the Red Sea and with ongoing East Coast labor talks, they’re being extra cautious this year,” Seroka said.
Encouraging outlook
With five months of data to go, both ports are about 6.2 million TEUs away from matching last year’s 12-month total and would need to hit at least 1.24 million a month to reach it. Their lowest monthly total this year is about 1.4 million, reached during the typical low point of March.
“We’re in a strong position heading into the peak shipping season as consumers purchase back-to-school supplies and shippers move goods ahead of potential tariff increases,” said Port of Long Beach Chief Executive Mario Cordero in a statement. “We have plenty of capacity across our terminals and cargo continues to move efficiently and sustainably at this premier gateway for trans-Pacific trade.”
Seroka noted there remained questions about the immediate future of the American economy. Inflation remains a stressor on wallets even as its rate has gradually slowed. The Federal Reserve may adjust interest rates next month. The Biden Administration recently imposed new tariffs on China and the looming presidential election – which of course counts former president Donald Trump, who imposed numerous tariffs in his first term, as a candidate – figures to be a source of continuing anxiety.
Nevertheless, Seroka added, prospects remain hopeful – at the very least, this month was looking like it would surpass last August.
“Given everything we know today, I believe the American economy and consumer confidence will remain strong,” Seroka said. “This should sustain a healthy demand for goods coming through our port throughout the balance of this year.”
Efficient operations
Dwell times – the period in which cargo offloaded from ships is loaded onto drayage trucks or freight trains – remained relatively steady in July given the surging import volumes.
Truck-bound containers spent 2.81 days at port terminals before being loaded in July, marginally worse than the 2.7 days in June. Meanwhile, train-bound containers waited 5.66 days before being loaded – nearly a full day longer than the 4.73 average in June.
“In the face of the high volumes experienced by the ports in July, we are pleased to see that truck dwell time remains low, and all stakeholders are working together to improve the improve fluidity of cargo through the ports,” Natasha Villa, external affairs manager of the Pacific Merchant Shipping Association, said in a statement.
