LOS ANGELES: The nation’s largest container port saw falling imports in October, joining other West Coast ports in reporting a weak end to what is usually the peak season for shipping volumes.
The Port of Los Angeles handled 358,602 containers loaded with imported goods last month, a decline of 3.3% from the same month in 2014 and a drop of 12% since August, when import volumes peaked earlier than usual at several of the Pacific ports.
October is usually a busy month as goods arrive to stock shelves during the holiday season. However, this October was the second-slowest for imports at L.A. in the last five years.
At the adjacent port of Long Beach, Calif., the nation’s second-largest for container traffic, import volume also fell in October—a decline of 0.8% from the same month last year and a steep 14% decline from Long Beach’s peak month of August. In Oakland, Calif., another major port on the West Coast, imports were down 3.3% year-over-year in October and 14% from August to October of this year.
The early jump in imports and slow October numbers have been attributed in part to extreme congestion during labor negotiations last fall and early this year at the West Coast ports. Since the congestion has subsided, many shippers found themselves with high inventories and have less need to import goods to replenish their supplies.
Strong consumer spending over the holidays would help reduce the inventory overhang. The National Retail Federation predicted earlier this week that November could see another import surge as retailers restock the merchandise they expect to sell during the holiday rush.
For January through October of this year, loaded imports to Los Angeles were down 3% over same period last year. Loaded exports were down 15% so far for the year, due largely to the strength of the U.S. Dollar and weaker demand from abroad.
Los Angeles, like other ports around the country, has reported skyrocketing volumes of empty container exports this year —a trend that continued through October, with the port of L.A.’s empty container volume up 13% over the same month last year.
