West coast ports see ‘unrelenting boom’ in US imports

Increased productivity in China and burgeoning online demand in the US created an unseasonable surge in import cargo, which lifted west coast ports to their busiest February on record.

Cargo throughput typically slows in February as east Asian factories close for up to two weeks to celebrate the Lunar New Year.  But port officials said China largely worked through the holiday to fill back orders and meet the increasing demands of US consumers ordering goods online.

As a result, the San Pedro Bay Ports of Los Angeles and Long Beach have been overly crowded, leading several shipping lines to bypass the backlog of ships in favour of other facilities to the north and east.

Port of Los Angeles executive director Gene Seroka said “a number of carriers made some pretty big announcements” regarding new shipping routes.

He downplayed the diversions, however, saying that “all ports of East-West significance are very full right now” and that “it’s not very easy” for ocean carriers to find alternative destinations for their cargo.

Hapag-Lloyd underlined that point on March 15, noting a variety of problems at other ports around the country, including Oakland, New York and Savannah where “vessels are waiting up to four to five days to obtain a berth.”

Speaking on March 16, Mr Seroka highlighted the challenges brought to his port by changes in supply and demand wrought by the pandemic.

“One year ago global trade slowed to a crawl,” said Mr Seroka. “Today, we are in the seventh month of an unparalleled import surge, driven by unprecedented demands by American consumers.

“Our challenges now are focused on getting port workers vaccinated and assisting stakeholders in managing this heavy flow of cargo. We will do everything we can to help get shipping lines back on schedule. It’s critical that we clear the backlog of cargo and return more certainty to the Pacific trade.”

Los Angeles processed 799,315 teu in February, a 47% jump compared with the year-earlier period. It was the seventh consecutive month of year-on-year increases and the strongest February in its 114-year history.

Loaded imports reached 412,884 teu last month, compared with 270,025 teu the previous year, a rise of 53%. Loaded exports fell 24.7% to 101,208 teu. Empty containers, heavily in demand in Asia, surged 104%, reaching 285,223 teu.

New records in Long Beach

In neighbouring Long Beach, dockworkers and terminal operators moved 771,735 teu in February, a 43.3% increase on the year earlier, marking the largest year-on-year increase for a single month in the port’s 110-year history.

It was also the first time the port has handled more than 700,000 teu in the month of February, exceeding the previous record set in 2018 by 109,945 teu.

Imports jumped 50.3% to 373,756 teu, while exports declined 4.9% to 119,416 teu. Empty containers through the port climbed 69.6% to 278,563 teu.

Port of Long Beach executive director Mario Cordero said the supply chain workforce was “giving its all” to keep the cargo moving, even as their ranks are hit by the pandemic.

“New records are being set, demonstrating how busy they have been,” Mr Cordero said. Still, he noted that delays were occurring and were being dealt with. “We understand that shippers are awaiting their cargo, and we are collaborating with our industry partners to deliver shipments as quickly as possible.”

Oakland’s ‘unprecedented’ surge

Meanwhile, an “unprecedented containerised import surge” resumed at the Port of Oakland in February following a dip in January.

Port officials said that import volume soared 26.2% in February compared to the same month in 2020, a “welcome event” for Oakland after supply chain disruption elsewhere drove its January import totals down nearly 12%.

“It’s what we expected,” said Port of Oakland maritime director Bryan Brandes. “Oakland continues to benefit from an unrelenting trade boom. We also completed the assembly of three new giant cranes which will further improve efficiency.”

Port officials said the facility handled 80,200 teu last month, marking the busiest February for incoming cargo in its 94-year history.

They said the facility exported 69,588 teu, an 11% decline from February 2020 due to “scarce vessel space” which hindered shippers attempting to export cargo.

The port’s import volumes have risen dramatically since last summer as a result of increased US consumer spending, with forecasts calling for “continued strong import volume” at least through the second quarter of 2021. 

Factories in Asia are shipping goods in record numbers to replenish US store shelves and assembly lines, a surge driven by retailers, manufacturers and e-commerce distributors.

Port officials said the trade phenomenon also was reflected in vessel loading data, with vessels loading and unloading the equivalent of 2,500 teu per visit — a record for Oakland, up 32% from an average of 1,900 teu per ship call in 2020.

While cargo volume is growing in Oakland, the number of ship arrivals is decreasing — down 26% as 156 ships called in January and February, some 54 fewer than in the first two months of 2020 which saw 212 ship visits.

Port officials said shipping lines were loading more cargo on fewer vessels to cut operating costs while disruption at the San Pedro Bay Ports saw some ships diverted from their Oakland calls altogether.

They said fewer ship arrivals should help ease berth crowding in Oakland, and would mean less diesel pollution from vessel funnels.

NWSA sees uptick in traffic

The Northwest Seaport Alliance of Seattle and Tacoma handled 263,330 teu last month, a rise of 0.9% compared to February 2020, with imports rising 10.3% and exports falling 13.6%.

Port officials said year-to-date volumes improved 5.1% to 551,619 teu, with full imports growing 10.6% and full exports declining 13.5%.

NWSA also is gaining from the backlog of ships to the south as the 2010-built, 3,650 teu CMA CGM Africa Four called at the NWSA’s Seattle Harbor for the first time on February 20.

Its arrival kicked off the new Golden Gate Bridge service, which the French firm says will allow for “new capacity” to Pacific Northwest customers.

The GGB service was introduced to meet increased e-commerce demand and the need for quicker transit times to US markets, bypassing the San Pedro Bay ports.

The service has a Shanghai-Yantian-Oakland-Seattle-Kaohsiung-Shanghai rotation