LOS ANGELES — Cargo volumes at the Port of Los Angeles rose 60% year over year to 781,434 total TEUs in February as shippers look to diversify their shipping strategy, the West Coast port announced this week.
Cargo volumes by the numbers
With pending outcome from the International Longshoremen’s Association contract negotiations, the Suez Canal still posing a risk for cargo flow and Panama Canal drought restrictions affecting ocean shipping, shippers are considering several different gateways to mitigate potential risks — including moving cargo to the West Coast.
"Importers and exporters are telling me more so than ever, they don't want to be the last people to shift cargo to another gateway should market conditions change,” Executive Director Gene Seroka said at a media briefing Monday. “So we're starting to see companies talk about shifting 2, 3, 5% of their business to different gateways to diversify a little bit.”
Seroka assured that the port is capable of meeting the increase in volumes from the ongoing diversions and has additional capacity to accommodate future demand.
"First, the market's confidence in our gateway is as strong as it's ever been. And thanks to the long-term labor deal now in place, we've got the world's best longshore workforce eager and ready to work," he said.
With seven months of continuous YoY growth, the Port of Los Angeles is optimistic about its ability to recapture market share. In February, the port’s loaded imports were up 64% YoY while loaded exports saw a 61% YoY increase.
“With American consumers still spending and economic indicators positive, the Port of Los Angeles is well-positioned as we move into the second quarter,” Seroka said.
