The torrid pace of trade through Southland ports continues to grow, and China continues to maintain dominance as America’s No. 1 trade partner, according to a study released Wednesday by the Los Angeles County Economic Development Corp.
Just about every quarter it seems the ports of Los Angeles and Long Beach are breaking a record. LAEDC’s report, “International Trade Trends & Impacts,” predicts more of the same. The amount of containers handled in the two ports (measured in twenty foot equivalent units, or TEUs) is on pace to increase in 2006 to 15.6 million TEUs.
That’s a 10 percent over 2005’s total. The dollar amount of the goods passing through is also on pace to increase; the report predicts an 11 percent surge, which and a grand total of $326 billion for the year. More than 43 percent of all waterborne goods imported to the U.S. comes through the Southland ports.
“International trade will continue to be a reliable employment engine this year in the Los Angeles five-county area,” said Jack Kyser, LAEDC chief economist. The report also mentioned that the Los Angeles International Airport handled a record level of cargo in 2005, nearly 2 million tons.
America’s top trading partner continued to be China, with two-way trade in 2005 totaling $102 billion, according to the Los Angeles Customs District. Next highest was Japan with $46 billion. Germany and the United Kingdom, also posted sizable increases in trade for last year, up 15 percent to $9 billion and up 13 percent to $5.6 billion, respectively.
With all of the increased cargo comes some inherent problems that must be dealt with as well, sadi Bill Allen, LAEDC chief executive.
“Despite all this good news, the international trade industry in Southern California faces a rather daunting array challenges,” Allen said.
Of the problems the report mentioned were crumbling infrastructure, increased pollution, a widening trade deficit, port security needs as well as relations with truckers.