Long Beach Port Revives Its Record-Breaking Streak

The Port of Long Beach rebounded in October after several months of slow activity. Cargo volumes increased 5.4% in October over last year, making it the third most active month in the port’s long history. The activity was largely driven by holiday season shipments, but the port has seen many record-breaking months this year. Cargo alliances have slowed shipment activity since July.

“October is traditionally one of the busiest months of the year because retailers are preparing for the holiday season,” Eric Bradley of the Port of Long Beach tells GlobeSt.com. “We’re seeing that time-tested dynamic, plus it’s likely the trade war is pushing businesses to forward goods to beat the tariffs set to take effect January 1.” The port moved 705,408 TEUs during the month with inbound containers up 7.9%. Export containers declined 5% and empty containers were up 8.5%.

The holiday shopping season drove the port activity for October, and should drive activity through November as well. “Many of the manufactured goods Americans will be buying this holiday season are coming from East Asia,” adds Bradley. “The National Retail Federation estimates holiday retail sales in November and December will increase between 4.3% and 4.8% over last year. We are optimistic about finishing the year out strong.”

The Port of Long Beach has been on a consistent growth streak. In June, the port experienced its busiest month ever in June after several record-breaking or near record-breaking months of activity. As a result, despite the slow down July through September, the port closed its fiscal year up 10.% over 2017. Cargo alliances were responsible for the slow down, but Bradley says it hasn’t been enough to impact overall activity. “We’ve experienced a few months where we’ve seen slight declines in cargo, or essentially flat performance,” he says. “But this is after a string of years where we’re consistently setting new monthly records. The Port’s trade volumes are up 7.9% so far this year, and remember, last year was the best in our 107-year history.”

In fact, Bradley says the three-month slow down was really an adjustment period, and does not expect any further impacts as a result of the alliances. “At this point, the alliance changes and shifts have settled in and are not a major factor in changes to the flow of cargo through this gateway,” he adds. “We frequently see a service or two shifting between POLB and POLA, but that is expected.”