Empty containers drive 6% growth at Port of Long Beach

Long Beach has outpaced its sister port in Los Angeles for containerized volumes so far in 2015.    Cargo volumes at the Port of Long Beach grew 6 percent to 635,250 TEUs in May, the third consecutive month of growth for the nation’s second largest container port.
   By contrast, the Port of Los Angeles, which abuts Long Beach port property, only experienced a 0.8 percent gain in container throughput compared to May 2014.
   Year-to-date, the number of containers handled in Long Beach is up 1.1 percent, while volumes are down 4 percent in Los Angeles. These numbers are skewed slightly because of the labor-related port slowdown early in the year, which contributed to cargo volumes plunging by about 20 percent year-over-year in January and February. 
   Volumes have slowly recovered since the International Longshore and Warehouse Union and waterfront management represented by the Pacific Maritime Association agreed on a new contract. May was the busiest month at Long Beach since October 2007 and the best May since 2006. The Long Beach port authority said solid demand for retail products is resulting in more import trade.
   Loaded import containers grew 4.8 percent to 327,317 TEUs, while export boxes decreased 7.4 percent to 135,855 TEUs.  Long Beach’s numbers were boosted by the amount of empty containers handled, which rose 22.6 percent to 172,078 TEUs last month.
   The Port of Oakland on Friday reported that its container business grew 3.8 percent last month to 213,260 TEUs.
   Stagnant growth at West Coast ports stands in contrast to booming business on the East Coast, as some shippers responded to the West Coast port gridlock by seeking alternative gateways for imports and exports. Major East Coast ports have realized box growth between 7 to 14 percent in recent months. Analysts have mixed views about how much of the cargo will continue to be diverted East as the productivity improves at the ports from Seattle to Southern California.