Sluggish Long Beach volume growth into 2023 due to economic and labor impacts


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Port of Long Beach to start 2023, fell below 600,000 TEU for 3 consecutive months (Port of Long Beach)

Published on 2023-02-13 19:46

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Container volumes at the Port of Long Beach have gotten off to a slow start to 2023. Port officials continue to blame softening consumer spending, rising prices due to inflation and shifting trade routes. In addition, continued delays in completing new labor contracts for dockers may continue to encourage shippers to divert volume to other ports.

The Port of Long Beach has released data on port volumes for January 2023. This was the third consecutive month that the port has processed less than 600,000 TEUs in a single month. The port exceeded that level for 30 consecutive months from May 2020 to October 2022, averaging 775,000 TEUs during that time, peaking at over 900,000 TEUs in May 2021.

Dock workers and terminal operators moved 573,772 TEUs in January 2023, up 5% from December 2022 but down 28.4% from January 2022. Exports also fell by more than 14%, but not as much as imports. However, he also shows a decline from December 2022, when exports increased by nearly 2% year-on-year.

Mario Cordero, Executive Director of the Port of Long Beach, said: “I am optimistic about regaining market share and developing projects that will enhance long-term growth, sustainable operations and the reliable movement of goods through the Port of Long Beach.”

The port has focused on economic issues in its monthly reports, but everyone is frustrated by the lack of agreement between unions and terminal operators 10 months after the contract expired . There have been no disruptions to traffic at West Coast ports, but concerns remain high after U.S. Secretary of Labor Marty Walsh told Bloomberg last week that he believed a deal had been reached by now. Everyone expects 2023 to start with low sales volumes. For example, a retailer Expected volume reduction But shippers remain concerned because the longer labor talks drag on, ports along the east coast and the Gulf of Mexico report gains, with modest declines compared to the west coast.

Long Beach Port Commission President Sharon L. Weisman said: “We are focused on investing in infrastructure projects that improve air quality and give us a competitive edge.”

The Port of Los Angeles has expressed similar displeasure as volumes have fallen while awaiting a labor agreement. While working to increase cargo volumes by emphasizing long-term backlog clearance, Los Angeles, like neighboring Long Beach, is also focused on infrastructure and has a long-term view. In future monthly updates, Los Angeles will focus on efforts to strengthen its position in the cruise industry. Recently released plans Major expansion and overhaul of cruise facilities.

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