Both Los Angeles ports saw a significant rebound in year-over-year cargo volume handled last month, which officials hope serves as a precursor for the fourth quarter.
The Port of Los Angeles moved 748,440 TEUs – 20-foot equivalent units, the industry measurement of cargo – in September, while the neighboring Port of Long Beach handled 829,429 TEUs. For L.A., it was the second straight month of year-over-year growth, while Long Beach’s haul was its largest-ever for September.
“Considering that global trade overall has eased this year, September was a good month here in Los Angeles,” Port of L.A. Executive Director Gene Seroka said in his monthly media briefing last week. “Given the muted peak season we’re expecting, a rising September performance is welcome news.”
L.A.’s figures included 392,608 import TEUs, a year-over-year increase of 14%, and 120,635 export TEUs, an increase of 55%. This was the port’s largest year-over-year increase in imports in more than two years and the the fourth straight month of year-over-year growth for exports. Additionally, it was the fifth consecutive month with more than 100,000 TEUs of exports, driven largely by significant jumps in recyclables, animal feed and vehicle part exports. Empty containers were down nearly 19%.
In all, L.A.’s total volume amounts to a 5.4% increase from last September.
Meanwhile, in Long Beach, imports were at 408,926 TEUs, an increase of 19% from last year. Exports were 101,248 TEUs (down by 10%) and empties were 319,255 TEUs (up by 11%). The total cargo increase of 12% from last September was Long Beach’s first year-over-year increase in 14 months and beat the prior September record, set in 2020, by 78,849 TEUs.
Seroka, along with Port of Long Beach chief executive Mario Cordero, cited resilient consumer confidence as a factor, even as interest rates remain high and inflation effects prices. They also pointed to strong employment numbers as helping to defy the high price of borrowing and consuming, and of course a ratified labor contract with dockworkers as comforting for shippers.
“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,” Cordero said in a statement. “We look forward to a moderate rebound in cargo volume through the end of the year.”
Seroka noted that at this stage, October volumes were on track to be flat compared to last year, while November and December looked promising enough to make the fourth quarter better than last year.
And while the holidays are signaling bumps in cargo, Seroka also pointed out that domestic warehouse inventories remained higher than usual.
“We knew that, post-pandemic, consumers would likely go back to spending more of their income on services and experiences and less on in-store products and online purchases,” he added.
Furniture is a good example of this, Seroka said. When the pandemic forced many workers to work from home, demand for couches, desks and tables skyrocketed, as illustrated by the 770,000 TEUs of furniture imports at L.A. in 2021. This year, those imports are on track for 560,000 TEUs, a 27% decline.
However the fourth quarter plays out, a strong performance is unlikely to make up for a steep decline in activity to start the year. Through September, L.A. has handled 6.4 million TEUs – a decline of 19% – while Long Beach has handled 5.82 million TEUs, down by 20%.
