Empties boost SoCal port volumes

Empties boost SoCal port volumes       The nation’s two largest ports reported higher container throughputs for June over the same period a year earlier, with particularly sharp increases in the number of empty containers handled.
      At the ports of Los Angeles and Long Beach, movement of empty shipping containers increased a whopping 53 percent in June, to
203,871 TEUs at Los Angeles and 141,935 TEUs in Long Beach. Empty movements are also up in Oakland. While June numbers haven't been posted, but in May Oakland handled 109,056 TEUs, 50.1 percent more than in May 2009.
      Shipping companies have been increasing the number of empty containers they are sending to Asia because of a shortage caused when production of new equipment plunged during 2009 to about one-10th of what they were in previous years. Some carriers have even taken vessels out of lay-up to act as “sweeper ships” to reposition empty containers from Europe and Asia to China for reloading with exports.
      Loaded container volumes were also up at L.A. Long Beach ports in June.
      Los Angeles said it handled 730,318 TEUs in June, 32 percent more than in June 2009. Loaded inbound containers were up 32 percent to
371,889 and loaded outbound containers were up 12.6 percent to 154,558 TEUs.
      Long Beach handled 520,100 TEUs in June, 26 percent more than in June 2009. Loaded inbound containers were up 27 percent to 262,053 TEUs, and loaded outbound containers were up 1.8 percent to 116.112 TEUs.

Hackett

      Shipping analyst Ben Hackett of Hackett Associates in Washington said production at factories in China that make containers was slow to start up this year, both because companies were uncertain about the strength in the recovery of the economy, and because of problems getting factories up to full production. He says some skilled workers left the container manufacturing industry in China, where nearly all containers are made, to look for jobs elsewhere. He added some workers in China have also been demanding higher wages.
      In addition, he said in some U.S. and Europe locations, the number of empties that ships could bring back to Asia was limited because of strong demand for vessel capacity by U.S. and European exporters.
      The number of empty boxes that could be handled in Asia was limited in the early part of the recovery by a limited amount of storage space for empties in Asia, he said.