Gene Seroka, Executive Director of the Port of Los Angeles, conceded that the city had a sharp decrease of 43% compared to the same time last year and 31% compared to February 2019. This downturn in container port traffic put Los Angeles in third place among U.S. ports for the month. On Tuesday, Long Beach revealed they had 11% more TEUs than Los Angeles, at 543,675.

Worst Month Since 2020 Wuhan Lockdowns

Shipments to Los Angeles dropped to 249,407 twenty-foot equivalent units (TEUs) in February, a decline of 41% compared to the same month a year ago, 33% less than the previous month, and 28% below February 2019. Long Beach imports totaled 254,970 TEUs, down 35% year-on-year, 3% from January, and 16% from the same month two years prior. The two ports saw 504,377 TEUs, the lowest amount in recent memory (including March 2020, when COVID-19 disrupted trade with China). According to Jonathan Seroka of Seroka, the decrease can be attributed to decreased global demand, high inventory in the U.S., the extended Lunar New Year period, and longshore labor negotiations that have been at a standstill since last August. March imports are expected to reach 600,000 TEUs, but the first quarter of 2021 will still be down 33% and 21% compared to the previous year and the 5-year average, respectively.

How Much Cargo has LA/LB Permanently Lost?

According to Nerijus Poskus, vice president of ocean strategy at Flexport, the optimistic view is that importers will return to Southern California ports once the labor contract is finalized. A labor disruption is avoided, but many may not due to the newly established supply chains, customers being closer to the East Coast, more shipping services to the East Coast, and the limited ocean freight spread between the East and West Coasts. Poskus believes that the West Coast will only gain some of its shares no matter what happens with the labor strike.

Sources: https://www.freightwaves.com/news/west-coast-wipeout-los-angeles-long-beach-imports-still-plunging