LOS ANGELES—Cargo volumes at the Port of Long Beach fell again in November, showing a 13.8% decrease in traffic compared to November 2015. Imports fell 11.8% to 270,610 TEUs, while exports declined 3.1% to 120,897 TEUs, while empty TEUs numbered 142,801, a decrease of 24.2%. This is the third consecutive month that cargo volumes have decreased at the port. As a result, the total cargo volume for the year is down 5.6%.
“The downturn in container numbers at the Port of Long Beach is mainly due to the effects of the Hanjin bankruptcy along with the current alliance structure that has seen that cargo that would have been carried by Hanjin to and from Long Beach instead going to other carriers moving through the Port of Los Angeles,” Lee Peterson of the Port of Long Beach tells GlobeSt.com. “You can also see that in Los Angeles' record cargo numbers for the past two months. On top of that, our own November in 2015 was quite busy, and set a high bar.”
The Hanjin Bankruptcy is pinpointed as a chief reason for the decrease; however, November 2015 was the Port of Long Beach's second-best performing November ever. As a result, it was likely that volumes would have fallen year-over-year. The port anticipates a decline in cargo volumes for the 2017 fiscal year as well. “At this point, we have forecast a 3% decline in container volume for the 2017 fiscal year, which started Oct. 1,” says Peterson. “For the calendar year 2017, it probably would be in the same neighborhood.”
In September, the port changed leadership, naming Duane Kenagy as interim CEO. While the Hanjin Bankruptcy is responsible for much of the slowdown, the change in leadership has not played a role. “Thanks to the stable executive leadership here at the Port, the change in CEO's office at the Port of Long Beach has not affected our business operations. Carriers, terminal operators and cargo owners know that we have continuity of leadership thanks to Interim Chief Executive Duane Kenagy's presence and the guidance of the Harbor Commission,” says Peterson. “We're working closely with our customers and tenants to answer any questions they may have, and the entire Port team is working hard just as always.”
LOS ANGELES—Cargo volumes at the Port of Long Beach fell again in November, showing a 13.8% decrease in traffic compared to November 2015. Imports fell 11.8% to 270,610 TEUs, while exports declined 3.1% to 120,897 TEUs, while empty TEUs numbered 142,801, a decrease of 24.2%. This is the third consecutive month that cargo volumes have decreased at the port. As a result, the total cargo volume for the year is down 5.6%.
“The downturn in container numbers at the Port of Long Beach is mainly due to the effects of the Hanjin bankruptcy along with the current alliance structure that has seen that cargo that would have been carried by Hanjin to and from Long Beach instead going to other carriers moving through the Port of Los Angeles,” Lee Peterson of the Port of Long Beach tells GlobeSt.com. “You can also see that in Los Angeles' record cargo numbers for the past two months. On top of that, our own November in 2015 was quite busy, and set a high bar.”
The Hanjin Bankruptcy is pinpointed as a chief reason for the decrease; however, November 2015 was the Port of Long Beach's second-best performing November ever. As a result, it was likely that volumes would have fallen year-over-year. The port anticipates a decline in cargo volumes for the 2017 fiscal year as well. “At this point, we have forecast a 3% decline in container volume for the 2017 fiscal year, which started Oct. 1,” says Peterson. “For the calendar year 2017, it probably would be in the same neighborhood.”
In September, the port changed leadership, naming Duane Kenagy as interim CEO. While the Hanjin Bankruptcy is responsible for much of the slowdown, the change in leadership has not played a role. “Thanks to the stable executive leadership here at the Port, the change in CEO's office at the Port of Long Beach has not affected our business operations. Carriers, terminal operators and cargo owners know that we have continuity of leadership thanks to Interim Chief Executive Duane Kenagy's presence and the guidance of the Harbor Commission,” says Peterson. “We're working closely with our customers and tenants to answer any questions they may have, and the entire Port team is working hard just as always.”
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