May POLA and POLB volumes are mixed
May volumes at the Port of Los Angeles (POLA) and the Port of Long Beach (POLB) were mixed in May, according to data issued by the ports this week.
Total POLA volume, at 828,662 TEU (Twenty-Foot Equivalent Units), rose 7.8% annually, representing the highest-volume May in POLA’s 112-years of operations. The previous high for the month of May was 2017’s 796,217 TEU.
Imports, at 427,789 TEU, were up 5.5%, and exports, at 167,357 TEU, fell 0.8%. Empty containers headed up 20% to 233,515 TEU. On a year-to-date basis through May, POLB volumes are up 5.2% annually at 1,863,959 TEU, with imports at 1,939,991 TEU, exports at 1,833,869 TEU, and empties at 1,140,540 TEU.
“I’m extremely pleased with another record month of throughput and grateful to our supply chain stakeholders, terminal operators and unparalleled labor force for their performance,” said Port of Los Angeles Executive Director Gene Seroka in a statement. “As we prepare for our traditional peak shipping season in the months ahead, we’re closely monitoring global trade tensions that have created heightened unpredictability.”
Total POLB May volume, at 573,623 TEU, was off 16.6% annually, when the port recorded its highest-ever May volume tally.
Imports fell 19.5% to 290,568 TEU, and exports were off 15.3% to 120,577 TEU. Empty containers saw an 11.7% decline to 162,479 TEU.
On a year-to-date basis through May, total POLB volumes are down 6% to 3,008,468 TEU. Imports are off 7.8% to 1,482,193 TEU, and Exports are down 11.7% to 598,392. Empties, at 927,884 TEU, are up 1.5%.
“One year into the trade war, escalating tariffs have pushed retailers to order goods early, warehouses are brimming with inventory as a result, and in response, ocean carriers are managing their vessels to deal with reduced demand,” Port of Long Beach Executive Director Mario Cordero said in a statement. “We are hopeful Washington and Beijing can resolve their differences before we see long-term changes to the supply chain that impact jobs in both nations.”
KeyBanc Capital Markets analyst Todd Fowler wrote in a research note that May POLA and POLB volumes were below seasonal variations and likely reflected the lingering effects of inventory pull forward, as well as ongoing trade discord.
“While potentially having modest negative implications for near-term freight volumes, softer imports could help reduce inventories into 2H19/2020, supporting re-stocking intermediately,” he observed. Based on normal seasonality we now expect 2Q19 volumes to be down ~4%, following a ~3% decline in 1Q19 and down ~3% on a full-year basis in 2019.”
