SIMIC

CONTAINER volumes at Southern California's ports, the largest complex in the United States, remain down significantly for the year and in the latest monthly report, according to Fort Lauderdale's The Maritime Executive.

Port executives had said they expected it would take time to rebuild their position after the labour settlement, but while other ports reported increases in July, Los Angeles and Long Beach reported significant declines from their record volumes in July 2022.



Los Angeles' July volumes showed an overall decline of 27 per cent in the number of containers moved or just 684,291 TEU, the third-lowest monthly total of 2023 falling back to the volumes seen in February and March.



Total volume was down nearly 18 per cent month to month from June which had been the port's best month this year. Imports continued their declines down a full 25 per cent in July while exports were up six per cent from low levels in July 2022. Empties leaving the port also reflected the declines in import volumes and the Chinese trade, falling 39 per cent versus 2022.



Gene Seroka, LA's executive director, continued to point to the elevated warehouse inventories of retailers and manufacturers as a key factor in the declines the port experienced. For the first seven months of the year, Los Angeles is just over 4.2 million TEU, down 24 per cent versus 2022.



Neighbouring Port of Long Beach saw similar declines in July. Its volume was down by more than 26 per cent year over year. After having seen a steep decline in June, the port experienced a further three per cent decline in overall volume in July. They saw significant declines in both imports (27.9 per cent) and exports (17.6 per cent).



"I am confident we will see our numbers improve as we work with industry partners to rebuild our market share," said Port of Long Beach CEO Mario Cordero.



"Looking ahead in the near term, however, we anticipate a modest 'peak season' for shipping as consumers spend a little less this year on back-to-school supplies and gifts through the holiday season."



Yet, while the SoCal ports continue to experience soft volumes, elsewhere in the US, ports are reporting rebounds.



To the north in Oakland, California the port had its highest volumes since October 2022. Full TEU were up 16.8 per cent last month versus the prior year. At Oakland, imports rose 12.5 per cent and working from abnormally low levels in 2022, exports jumped 23 per cent last month but remained lower than the monthly average in 2023.



The Georgia Ports Authority also reported a 17 per cent increase in container volume from June to July 2023 for Savannah, while Charleston, South Carolina also reported a 12 per cent increase in container volume between June and July and a three per cent year-over-year increase.



The major carriers have all forecast subdued volumes with small if any rebounds in the near term for container volumes. The expectation has been slow increases creating further challenges for the Southern California ports as they work to regain the leadership position.