NEW YORK: West Coast ports handled more than half of U.S. seaborne imports for the first time in nearly a year, the latest sign that the region has shaken off the effects of last winter’s labor problems.
In September, the Pacific ports handled 50.7% of imports into the U.S., measured by the value of goods, according to a Beacon Economics analysis of U.S. Census Bureau data. East Coast ports’ share of import cargo fell to 42.6%.
The numbers have reversed since February, when labor negotiations brought major West Coast ports to a virtual standstill, and many shipping lines shifted their routes to stops along the East Coast. An agreement with dockworkers was reached that month, but the effects of the slowdown have lingered as shippers and carriers waited to see whether West Coast ports would run as smoothly as before.
The September data shows that shippers once again “have confidence in the efficiency of these ports to get their goods to market expeditiously,” said Jock O’Connell, an analyst with Beacon Economics. “Shippers are gravitating back to West Coast.”
Total volumes remain uneven at some West Coast ports, including Los Angeles. That indicates high-value shippers are returning in greater numbers, Mr. O’Connell said.
“As the word gets out, other importers of less valuable goods will follow,” he said.
Traditionally, West Coast ports have handled about 50% of U.S. imports by value, due largely to their proximity to Asia. That began to change late last year. Contract negotiations between the International Longshore and Warehouse Union and the Pacific Maritime Association, which represents carriers and terminal operators at the ports, began in May 2014 but lasted much longer than anticipated, growing heated by January before an agreement was reached in late February.
The uncertainty and visible congestion—dozens of ships sat waiting in Southern California’s San Pedro Bay for weeks—wreaked havoc on retailer supply chains, and many shippers decided to send more of their more valuable cargoes through ports on the East Coast.
East Coast ports held a slim lead on imports for months after the agreement was reached, leading some to predict they would permanently hold onto their new shipping routes. But since the busy holiday season has picked up, the value of goods entering the U.S. through the West Coast jumped back to historical levels of over 50%.
Shipping activity at Port Qasim on February 11
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