Port of LA's Container Volume Drops as Labor Troubles Loom

Wednesday, 07 June 2023

blog1

The Port of Los Angeles is a bellwether for American trade with Asia's manufacturing hubs, and its volumes have risen and fallen dramatically since the start of the pandemic. Imports went down during the early lockdowns of 2020, then soared sharply up in 2021-22 - and are now sharply down as consumer demand sours. 

In March, the port shed 35 percent of its TEU volume when compared with the same period in 2022, losing 335,000 TEU worth of cargo activity.

MORE NEWS : MSC Containership Loses Empty Containers Overboard Off Bermuda

Port of LA noted that it had set new all-time high cargo records in Q1 2022, so the decline in volume for a soft month this March looked particularly sharp by comparison. However, March 2023 was also about 4 percent slower than March 2019, before the start of the pandemic.  

Looking ahead, however, the port sees promising signs of a rebound towards the end of the year. 

“Economic conditions slowed global trade considerably in the first quarter; however, we are beginning to see some signs of improvement, including nine consecutive months of inflation declines,” said Seroka. “Early data and monthly growth indicates a moderate increase in Q3.”  

MORE NEWS : MSC Partners with Valencia to Expand Med’s Busiest Container Port

Seroka also encouraged the port's longshoremen and terminal operators to conclude negotiations on a new labor contract. The talks have been under way between the International Longshore and Warehousing Union (ILWU) and the Pacific Maritime Association (PMA) for 11 months, and cargo interests have begun hedging their bets against the possibility of labor disruption. Ports on the U.S. East Coast and Gulf Coast have absorbed some of the cargo that would ordinarily be routed through Los Angeles, making the drop in Q1 steeper than it might otherwise have been. The brief union walkout last Friday should serve as a wakeup call, Seroka said at a press conference Wednesday. 

“What we saw last week was a call to action for everyone to hunker down and get this deal done as quickly as possible,” he said. "This situation captured the nation’s attention — and rightly so."

Source : https://maritime-executive.com

 

Tags: