Imports at the Port of Los Angeles remained above pre-pandemic levels in the first five months of 2024, despite a slight decline in May compared to the previous year.
“Cargo is down a bit only because we had exceptionally high numbers a year ago,” said Gene Seroka, Executive Director of the Port of L.A., at a press conference on June 12.
The surge in cargo last year was driven by concerns over potential disruptions in contract negotiations between West Coast dockworkers and their employers, prompting importers to expedite their shipments, Seroka explained.
Overall container volumes at the busiest U.S. container port increased by 18% in the first five months of 2024 compared to the same period in 2023.
In May, the Port of L.A. processed 390,663 twenty-foot equivalent units (TEUs) of containerized imports, down from 409,150 TEUs in May of the previous year. Empty containers decreased by nearly 12%. However, the port handled 125,963 loaded export containers, a 23.8% increase from the same period last year.
Seroka expects strong trade volumes to continue through the summer, noting that there has been no decline in purchase orders for the manufacturing and retail sectors, nor any canceled sailings from Asia.
However, risks remain in the global supply chain. Congestion along trade routes has caused spot freight rates to rise, and negotiations between dockworkers and employers at ports from Boston to Houston are becoming increasingly challenging.
So far, disruptions like the attacks by Houthi militants on vessels in the Red Sea and the International Longshoremen’s Association’s potential strike if there’s no deal by the September 30 deadline have not significantly impacted cargo volumes at the Port of L.A.
“Importers and exporters have shifted small portions of their allocations to Los Angeles as a precaution,” Seroka noted. “Nothing major, no big surge.”
Meanwhile, monthly imports to U.S. container ports are expected to reach their highest level in nearly two years this summer, according to a forecast from the National Retail Federation and Hackett Associates released earlier this week.
Jared Bernstein, Chair of the Council of Economic Advisers, who also spoke at the press conference, said the White House is monitoring the dockworker negotiations closely due to their potential economic impact but is maintaining a hands-off approach.
President Joe Biden “supports collective bargaining and believes in giving the parties the space they need during negotiations,” Bernstein said. “We’ve consistently stayed out of their way and encourage them to negotiate in good faith.”
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