The Port of Los Angeles (POLA) and the Port of Long Beach (POLB) saw annual declines in throughput in January from 2023, according to data released separately by the ports this week.
POLA reported that total traffic in January was 726014 TEU(20-foot equivalent units), down 16% from January 2021 and a record for the month. Imports were 372,040 teu, down 13 percent, and exports were 102,723 teu, up 2.5 percent. Empty containers were 251,251 teu, down 26%.
"We expect global trade to soften throughout the first quarter, especially compared to last year's record-breaking start," Port of Los Angeles executive director Gene Seroka said at a media briefing yesterday. "Many factories in Asia have extended their Lunar New Year closures, retailers continue to discount products to clear out warehouses, and inflation-led economic problems remain a top concern for Americans. With the capacity of our terminals today, we are ready to unlock new levels of value and service at the Port of Los Angeles.
Seroka explained that imports in January, although down year-on-year, were 6% higher than in December, which was attributed to shippers launching their products ahead of the Lunar New Year. He said that despite the increase in exports, there was a caveat that exports were still 22 percent. He noted that the drop in empty capacity was due to a slowdown in demand for containers in Asia.
outlook for February, Seroka said POLA expects a sharp drop in sales in the second quarter and a softer market due to various factors, including:
during the Chinese New Year, many manufacturing plants in China will be closed for up to 30 days, making it impossible to transport goods;
; U.S. warehouses remain full with an inventory/sales ratio of 1.35, which is below all-time highs but still high;
and with interest rates rising and inflation falling, but still higher than expected at 6.4 percent, economic uncertainty remains.
"we may see an increase in [numbers] in the second half of the year, but this will coincide with the more traditional peak season, with the arrival of fall fashion, back-to-school and year-end holiday goods," he said. "Unlike last year, we saw strong trading volumes in the first half of last year, and 2023 will become a more robust environment in the second half of this year."
POLB data: POLB volume in January was 573,772 TEUs, which was also down from the record level in January 2022, down 28.4 percent. Imports fell 32.3 percent to 263,394 TEU and exports fell 14.2 percent to 105.623 TEU. The number of empty containers fell 29% YoY to 204.755 TEU.
"We are taking proactive steps to meet the new challenges of the new year," Port of Long Beach executive director Mario Cordero said in a statement. "I remain optimistic that we will regain market share and develop projects that will foster our long-term growth, sustainable operations and reliable flow of goods through the Port of Long Beach.
Source: Maritime Magazine