CALIFORNIA PORTS: The ports of Los Angeles and Long Beach could see volumes drop if ship traffic is disrupted for an extended period out of Tianjin, the research firm Zepol said Friday.
Zepol estimates that 45% of U.S. imports that originated in Tianjin enter the country through the two California ports. On Wednesday explosions at a warehouse facility in the northern Chinese city killed over 50 people and injured hundreds more.
Container terminals were resuming operations in Tianjin, the world’s 10th-busiest container port, but the port faces logistical problems that could create bottlenecks. For instance, customs officials were not accepting routine export and import paperwork on Friday, according to a spokeswoman at Mediterranean Shipping Co., one of the largest container shipping lines.
“If port infrastructure has been damaged at Tianjin, it could mean a little lull in volume from Asia to the [Los Angeles and Long Beach] ports,” Zepol said. Get the latest logistics and supply chain news and analysis via an email newsletter. Sign up here.
On Thursday, Long Beach reported that container volumes reached a record high in July, indicating that the port may be overcoming a slow first half of the year. Most West Coast ports saw traffic decline after widespread slowdowns tied to labor strife toward the start of the year.
It takes roughly two weeks for ships to reach Southern California from China, so it’s still difficult to determine whether cargo will be impacted, said Art Wong, a spokesman for the Long Beach port. “We’re trying to get some information, but it’s hard to figure out exactly what’s happening over there,” he said.
Mr. Wong said China is the source of about two-thirds of cargo received at the Port of Long Beach. Ships tend to make several stops at Chinese ports on their routes to the U.S., Mr. Wong said, “so even if this delays that cargo, that doesn’t mean it won’t eventually come.”
In the meantime, Mr. Wong said port officials are monitoring developments at Tianjin and examining their own operations. “We have a lot of hazardous materials around the port, and of course we always want to make sure we’re taking necessary precautions,” he said. “I think every port is looking at this thinking the same thing right now.”
