Posted on May 31, 2023
Despite being significantly down from last year, the three biggest ports in the U.S. have all seen month-over-month gains in both March and April.
The Port of Los Angeles processed the most TEUs of the three in April at 688,110, down 22 percent from last April but up 10 percent from March. March numbers in turn were 28 percent higher than February.
“A cooling global economy, warehouses laden with aging inventory and prolonged West Coast labor negotiations have all contributed to a slowdown in trade,” said Port of Los Angeles Executive Director Gene Seroka. “If economic conditions improve and we get a labor deal in place, that will help improve volume the second half of the year.
“The bright spot is, we’ve been on an upward trajectory these last two months,” he continued. “I believe this trend will continue in May.”
The Port of Long Beach came in second in April, moving 656,049 TEUs. That’s down 20.1 percent from last April, but a 53,000 gain from March, which in-turn saw a 60,000 gain from February.
Finally, the Port of New York moved 648,390 TEUs in April, down 20.1 percent from last year. Again, numbers climbed month-over-month, rising 74,000 TEUs from March. From February to March, processed TEUs rose by 3,000.
Year-to-date, the Port of Los Angeles is currently in the top spot, followed by the Port of New York and then Long Beach in third.
LA’s Seroka says it’s hard to predict what’s coming. “We’re seeing mixed signals with no clear consensus on what lies ahead,” he said. “The high demand for goods witnessed over the past few years has softened. On the other hand, the U.S. had a strong jobs report, and both freight and energy costs are stabilizing.
Seroka noted two things that could destabilize the economy: if congress doesn’t raise the debt ceiling and if the Federal Reserve raises interest rates.
Seroka said the Port of LA has been operating at only 70 percent since August, due to both loss of cargo and the labor negotiations.
“I believe we’re on the doorstep of a tentative agreement,” he said in a press briefing. “Both sides are spending a lot of time at the negotiation table, and I’m optimistic we’ll hear good news soon.”
