The Port of Long Beach saw container volumes tumble 22.1 percent year-over-year in April, as a soft retail environment hindered imports, while weak economic conditions overseas and the strong U.S. dollar set back exports.
Container traffic at the Port of Long Beach dropped 22.1 percent in April compared to a year ago as imports slowed due to a soft retail environment and export headwinds associated with weak economic conditions in overseas and the strong dollar.
The port authority said marine terminals handled 478,842 TEUs. There were 22 percent fewer loaded inbound containers (247,316 TEUs) and 18 percent fewer loaded export containers than in April 2015. Empty container volumes fell 25.8 percent to 118,721 TEUs.
The decline also reflects evolving vessel alliances that have shifted ship deployments to the Port of Los Angeles.
“The additional berthing choices offered by vessel alliances are dispersing cargo across more terminals and ports. These volume shifts will continue to occur as newly formed alliances take shape. Our long-term outlook remains strong as we continue to invest in our facilities and offer world-class customer service,” Long Beach CEO Jon Slangerup said in a statement.
But the primary cause of the decline remains slow consumer spending, with retailers placing fewer orders for goods produced overseas.Combined for the ports of Los Angeles and Long Beach, container volume was down about 8 percent for April. The Port of Los Angeles handled 656,177 TEUs in April, a 1 percent decline from April 2015. Loaded inbound container volumes rose 4.7 percent to 343,574 TEUs, while loaded outbound container volumes fell 1.1 percent to 144,103 TEUs. In addition, the movement of empty containers tumbled 10.9 percent from April 2015 to 168,499 TEUs.
Through the first four months of 2016, cargo volume was down 2.2 percent in Long Beach, reflecting slowing economic growth nationally. Container volume plunged 26.2 percent in March. U.S. GDP was up 1.7 percent in the fourth quarter of 2015 followed by 2016 first quarter GDP growth of only 0.5 percent.
Long Beach’s figures are consistent with analysis from the National Retail Federation, which reported a 14.2 percent decline in March for import volumes through major container ports. The NRF’s Port Tracker estimates port volumes will be down 0.8 percent for April and 2.1 percent in May.
Fiscal year-to-date since Oct. 1, box volume at Long Beach is up 1.5 percent, according to the port authority.
Long Beach box volumes fall sharply for second straight month
