Despite cargo numbers increasing at both the ports of Los Angeles and Long Beach last month, a growing focus is being put on global disruptions that are impacting trade, said POLA Executive Director Gene Seroka during his monthly virtual news conference on Monday, March 18.
There are geopolitical and supply chain risks as conflicts play out in the Middle East and a drought continues impacting shipping routes in the Panama Canal. The U.S. presidential election in November is also being closely watched, Seroka said. And, he added, markets are shifting, with more cargo emanating from places like Vietnam.
“There’s a lot of concern,” Seroka said about geopolitical uncertainty.
Appearing with Seroka this month was APM Terminals Executive Leo Huisman, who said acceleration in worker training will be needed as technology advances. Ships, Huisman said, are getting much bigger and, overall, terminals will be required to adapt.
Huisman oversees 14 container terminals in eight countries across North and South America, including APM Terminals Pacific at the Port of Los Angeles.
The new labor contract with West Coast dockworkers, which union members ratified last year, will bring “some cargo” back, Huisman said. There should be indicators by midsummer, he said, on how well and how fast labor negotiations on the East Coast are going.
Near-shoring, Huisman said, is bringing more cargo to hubs now developing in South America and other countries. Near-shoring is a term for moving a company’s production closer to consumers to reduce costs and potential logistical problems.
“But shippers have to make up their own minds,” he added, “and some of them will diversify.”
A Pacific Maritime Association training facility at Pier 400, meanwhile, is scheduled to begin its classes in May, while another workforce training center being developed by both the ports of Los Angeles and Long Beach is still in the design stage.
“Technology is moving faster than ever,” Seroka said. “We cannot leave the workforce behind. Growing cargo is an important component of job growth now and in the generations to come.”
February’s cargo numbers, meanwhile, were strong at both ports.
Last month, Seroka said, saw 781,434 cargo units moved in Los Angeles, which was “a huge 60% improvement over last year’s very soft February.”
It also represented the port’s seventh consecutive month of cargo growth in all categories, including imports and exports, Seroka said.
At the neighboring Port of Long Beach, officials reported 674,723 twenty-foot equivalent units (TEUs, the industry’s standard measurement for cargo units) being handled in February. That was a 24.1% increase over February 2023. Imports were also up, though exports were down in the month-to-month comparison between 2023 and 2024.
Long Beach port officials pointed to cooling inflation, rising consumer confidence and an ongoing effort to recapture market share as reasons for the cargo boost.
“Our top-notch customer service and ongoing efforts to attract business back to the West Coast are paying off,” Port of Long Beach CEO Mario Cordero said in a written comment.
In the first two months of the year, Port of Long Beach officials reported moving 1,348,738 TEUs, which is a 20.7% increase from the same period in 2023.
Seroka, noting that the traditional peak season for arrivals of fall goods and winter holiday items will likely hit early again this year, said March is expected to see some slowdown from February because of the Lunar New Year. Still, he said, the first quarter figures so far indicate a 25% bump over the first quarter of 2023.
The bumbers, he said, are beginning to look comparable to pre-pandemic years.
“I like our position as we move into the second quarter,” Seroka said.
The market, he added, is strong and data shows an uptick in retail sales.
“Americans,” Seroka said, “are keeping up with their spending habits.”
Related Articles
LA harbor commission OKs 30-year lease extension for Battleship Iowa
EPA chief visits Port of LA to discuss new $3 billion Clean Ports grant program
$130 million project to reconfigure Vincent Thomas Bridge interchange in San Pedro to begin soon
Port of LA application process for nonprofit grants is now open
Residents in San Pedro get a peek at how the new Port of LA air monitors work