POLA and POLB see another month of strong volume gains in August

Another month of strong volumes was in the cards in July for the Port of Los Angeles (POLA) and the Port of Long Beach (POLB), according to data respectively issued by each port in recent days.

POLA reported that total July volume—at 890,800 TEU (Twenty-Foot Equivalent Units)—was up 4% annually, topping June’s 876,430 TEU, while falling short of the 1,012,248 TEU recorded in May, which set a new port record, topping the previous monthly high set in April, at 946,966 TEU. June also marked the 12th straight month of annual increases for the port, too, which was preceded by 11 straight months of annual declines.

POLA imports—at 469,361 TEU—rose 2.9% annually, which was ahead of June’s 467,763 TEU, while exports continued an ongoing decline, falling 27.6% annually, to 91,440 TEU. Empty containers—at 329,999 TEU—saw a 20.4% annual gain, topping June’s 312,600 TEU and falling short of May’s record 366,448 TEU.  

On a year-to-date basis through July, total POLA volume—at 6,318,675 TEU—is up 36.8% compared to the same period a year ago.

POLA Executive Director Gene Seroka said on a media conference call earlier today that these numbers are a reflection of how the American consumer’s buying strengths remain in full force, as well as a great indicator of just how sustained this American buying surge has been. And he said that the 4% annual gain are against a period when imports really started to take off for POLA.

“We welcomed 79 container vessels [in July] compared to 88 last year,” he said. “While we had ten fewer ships compared to 2020, cargo volumes still increased. That points to bigger ships and better utilization, bringing a chockful of cargo our way. In fact, POLA is now averaging an exchange loading and unloading of more than 11,000 TEU per vessel call, that is the best in the business.”

Addressing the trajectory of imports, Seroka explains that retailers are shifting from back to school and fall fashion goods, as well as Halloween products, to winter and year-end holiday merchandise, and he cited National Retail Federation data pointing to August as the biggest month on record for U.S. imports, despite retail sales falling 1.1% in July, which was reported earlier today.

On the export side, Seroka observed that the freefall continues, with July turning in the lowest monthly tally going back to February 2005.

“The ratio of imports to exports is now over 5.1, the widest gap we have seen yet,” he said. “Sadly, exports are down in 29 of the last 30 months at POLA.”

POLB data: Total July volume at POLB saw a 4.2% annual increase, to 784,845 TEU, for a new July record, topping the previous record set in July 2020. Imports headed up 1.6%, to 382,940 TEU, and exports fell 20.7%, to 109,951 TEU. Empties increased 22.8%, to 291,955 TEU.

Port officials said that the global pandemic continues to impact trade volumes, noting how an outbreak at the Port of Yantian in China delayed some vessels that called at the Port of Long Beach in July. And they added that it is likely that increasing COVID-19 cases in Vietnam will disrupt supplies in the months ahead as factories shut down to contain outbreaks of the virus.

“Ships arrived last month to move these empty containers out of the harbor and clear valuable terminal space as we handle historic amounts of trade,” said Port of Long Beach Executive Director Mario Cordero in a statement. “These boxes are a valuable commodity in the overstressed global supply chain. Our loaded exports are likely to rebound this month.”

Through the first seven months of 2020, total POLB volume—at 5,538,673 TEU—is up 32.3% annually.