Ports Rank Among Top Three Nationally

LOS ANGELES—The Los Angeles and Long Beach ports rank among the top three nationally, according to the latest Seaports Outlook Report from JLL, which ranks ports based on proximity to population density, transportation networks, recent infrastructure improvements and the industrial space availability. The Long Beach Port ranked second in the nation and the Los Angeles Port ranked third, while New York/New Jersey ranked in the top position.

“The counts of available, larger blocks of industrial space within close proximity of the Southern California ports is the main criteria that separates them from New York/New Jersey,” Barry Hill, an SVP at JLL, tells GlobeSt.com. “Southern California is an extremely tight market, which at times poses challenges for users to find desirable facilities to meet requirements. Nonetheless, it's important to note that even though New York/New Jersey tops our rankings this year, these three ports are in a league of their own due to the superior terminal operating metrics.”

This is the fourth consecutive year that the New York/New Jersey Port has ranked in the top position. Although Los Angeles and Long Beach are the primary gateway ports, cargo volume on the West Coast overall decreased by 2.2%, according to the report, following supply chain disruptions linked to the recent labor dispute. By comparison, cargo volume in the Gulf and on the East Coast was up 25.3%. Long Beach and Los Angeles are expected to remain as the gateway ports thanks to recent automation enhancements and the rail access that gives importers connectivity to the rest of the nation.

Imports are driving much of the demand for industrial product in these markets; however, export volume is also a factor. Exports have been seeing double digit decreases out of the L.A. and Long Beach ports. “Much of the demand for industrial product is In terms of industrial real estate demand, import volumes have more of an impact than do exports but both are indicators of overall health of the local industrial markets. Los Angeles is an incredibly tight industrial real estate market, with demand outweighing supply in nearly every size segment in each submarket,” says Hill. “To reflect the importance of overall port activity, our ranking methodology considers total TEU volumes as part of the terminal operating metrics category. We are tracking strong enough activity in our local ports to suggest that demand from industrial real estate users will be sustainable for the foreseeable future. Meanwhile, the lack of new product and available options are trailing the volume of demand which is leading to the escalating pricing and competitiveness we're seeing in the market today.”