Port of Los Angeles and Port of Long Beach report strong January volumes

January volumes at the Port of Los Angeles (POLA) and the Port of Long Beach saw a strong start to 2024, according to data recently respectively released by each port this week.

POLA volume came in at 855,652 TEU (Twenty-Foot Equivalent Units), for an 18% annual increase, while posting the second-highest tally for January, with only January 2022, which was driven by what the port called a “pandemic-induced cargo surge, topping it. POLA said that this marked the sixth consecutive month of annual gains.

Imports, at 441,763 TEU, increased 19% annually, and exports, at 126,554 TEU, rose 23%, for its eighth consecutive monthly gain. Empty containers saw a 14% annual increase, to 287,336 TEU.

POLA Executive Director Gene Seroka said on a media conference call yesterday that two primary factors drove January’s strong numbers.

“First, cargo owners have been actively replenishing inventories and swiftly moving goods ahead of the Lunar New Year holiday…which officially began last Saturday, resulting in the planned closure of many factories in Asia for about 10 days. Second, generally positive economic data demonstrates the strength of the American economy. For example, 2023 holiday sales grew by 3.8% year over year hitting an all-time record high of $964 billion in sales and powered by increased consumer spending. Our nation's GDP grew by a strong 3.3% in the fourth quarter, surpassing Wall Street's expectation of a 2% gain. With exceptional job growth in January with 353,000 new jobs added, retailers and manufacturers are gearing up for more spending by Americans.”

Addressing the nearly 20% increase in January imports, Seroka said that around this time of year, there is typically a pickup in cargo ahead of the Lunar New Year holiday. And in addition to that he explained that the ongoing situations in the Red Sea and Panama Canal have been limited, at least so far.

“But that could change as shippers weigh a host of factors in those regions,” he said. “POLA has the capacity to handle additional cargo if there is a need or desire to reroute in this direction. We stand ready to help American importers and exporters to keep our economy going.”

Looking at January exports, Seroka said that January and the preceding seven months of growth serve as a “welcome rebound” after more than two years of very low export growth.

POLA’s Port Optimizer data indicates more robust volume in February, according to Seroka, whom added he is estimating in excess of 700,000 TEU, followed likely by an ease during the last week of February and into the first part of March as it feels the impact from the planned holiday closures.

“We expect the first quarter to tell a different story than last year,” he said. “That's when some of our cargo shifted to the East and Gulf Coast ports, due to concerns about protracted [West Coast] port labor negotiations. For the quarter, I expect a 20% increase to about 2.2 million TEU over last year. Today, with a six-year labor deal in place between our dockworkers the, ILWU, and the Pacific maritime Association on the West Coast, confidence in our gateways ability to deliver is strong. In fact, since a labor deal was ratified last August, our Asia import market share is up to 46%. That's a four-percentage point jump for the San Pedro Bay ports during that time. There's more work to do on this front. But so far, I'm very pleased with the direction we're heading this year.”

POLB data: The Port of Long Beach reported that January volume, at 674,015 TEU, increased 17.5% annually, in advance of the Lunar New Year, marking its fifth consecutive month of annual growth, which was preceded by 13 consecutive months of annual declines.

Imports, at 325,339 TEU, rose 23.5% annually, and exports fell 18.1%, to 86,525 TEU. Empty containers headed up 28%, coming in at 262,151 TEU.

“Retailers stocked their warehouses in January ahead of the slower import activity we typically see during Lunar New Year celebrations,” said Port of Long Beach CEO Mario Cordero in a statement. “We are ready to grow our volumes and hope to see continued growth through 2024 as we gradually recapture market share.”