U.S. Container imports remained 7.2 percent higher than pre-pandemic levels as October saw a 13 percent year-over-year nosedive, with the Port of Long Beach dropping by 23.7 percent.
“The supply chain is returning back to normal and cargo continues to move. So, I am optimistic that store shelves will be stocked and goods will be available for delivery during the holiday season,” Port of Long Beach Executive Director Mario Cordero reportedly said. “Over the long term, the San Pedro Bay ports complex will continue to be a competitive, strategic and sustainable gateway for trans-Pacific trade.”
The October dip follows a September that suffered an 11 percent year-over-year decline. Some peg the container import slippage to the contentious labor-management contract disputes that could result in West Coast dockworkers and longshoremen going on strike, effectively shuttering dozens of seaports. Friction at the Port of Oakland resulted in a temporary shutdown and some workers are reportedly refusing to handle tasks related to union-management disputes.
“I’m reminded of, ‘Be careful what you wish for.’ A 20 percent drop in cargo volume, wow. With that drop, there has been a tremendous loss of work opportunities,” Harbor Commissioner Diane Middleton reportedly said. “Casuals are working one or two days a month. So, while the drop in cargo volume brought some good things in terms of the supply chain, everyone was used to all that work and now work’s drying up.”
Others attribute the sluggishness to China’s zero-Covid tolerance policies and its widespread lockdowns. Chinese goods have dominated West Coast ports, accounting for 41.5 percent of all imports in February. Those numbers fell to 36.4 percent in October. Asian manufacturers and exporters negotiate an uneven economic landscape. To the Port of Long Beach’s credit, the container volume numbers are still ahead of 2021 by 1.5 percent.
“We continue to collaborate with our industry and workforce partners to ensure the safe, sustainable and reliable delivery of goods moving through the Port,” Long Beach Harbor Commission President Sharon L. Weissman reportedly said. “The Port of Long Beach has a lengthy history of adapting to the needs of our customers during the best of times and the most difficult of times.”
Whether driven by losses in Asian imports, manufacturer near-shoring, re-imagined trade routes, or a combination of these forces, the Port of New York-New Jersey handled the highest number of container imports again in October at 400,663 TEUs. The Port of Los Angeles reportedly ran a distant second at 329,785 TEUs and Long Beach was nearly 100,000 behind at 300,914 TEUs.
“In my entire time at the Port of Los Angeles, over nine years, there’s never been a time when both the Port of L.A. and Long Beach were out-performed by New York-New Jersey,” Port of Los Angeles Harbor Commissioner Ed Renwick reportedly said. “So, that’s a shocking development.”
Sources: ajot.com, dailybreeze.com, gcaptain.com
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