WASHINGTON: Port of Long Beach officials Friday reported a 22 percent drop in cargo activity last month, compared with the same time last year. The decline in cargo volume in April, which followed a healthy first quarter, occurred as retail sales slowed and economies overseas struggled, according to harbor officials. Port of Long Beach CEO Jon Slangerup also pointed to changes in shipping deployment — the result of shifting vessel alliances — as a possible factor in the lower volumes.
“Additional berthing choices offered by vessel alliances are dispersing cargo across more terminals and ports,” Slangerup said. “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.” The Long Beach port moved 478,842 twenty-foot equivalent units, or TEUs, in April, which reflects declines in the categories of both imports and exports of loaded containers, as well as empty containers.
Loaded imports fell 22 percent last month to 247,316 TEUs, while loaded exports were down 18 percent to 112,805 TEUs. The level of empty container activity dropped 25.8 percent to 118,721 TEUs. Overall cargo volume this year is 2.2 percent less than the first four months of 2015. “Economic conditions today are very volatile, but we remain confident in our long-term prospects,” Long Beach Harbor Commission President Lori Ann Guzman said. Guzman said the port is “preparing for economic uncertainty by carefully reviewing our budget and looking for savings at every opportunity.”
“While we still have significant modernization projects planned for the next 10 years, the pace of the projects will be determined by the health of the economy,” Guzman said. The Long Beach port figures comes after its neighbor, the Port of Los Angeles reported increases in activity for loaded containers, despite seeing flat overall figures for the same month.
Loaded container volumes for the Port of Los Angeles grew 2.9 percent last month, with loaded imports rising 4.7 percent to 343,574 TEUs, and loaded exports remaining flat, falling 1 percent to 144,103 TEUs. Overall Los Angeles port volumes this year are up 8 percent over the same four months last year. The level of loaded import activity is a “key indicator” because it represents goods flowing in from Asia and headed to the shelves of U.S. retailers, said Phillip Sanfield of the Port of Los Angeles.
