Ports Manage to Close 2016 Strong

LOS ANGELES—The Port of Long Beach closed 2016 strong, despite a difficult year. Due in part to the Hanjin Bankruptcy and new carrier alliances, the Port of Long Beach cargo volumes fell 5.8% for the year from 2015. While that sounds like a steep decrease, the year actually ranked fifth overall for the Port. Additionally, 2015 was the best year on record, making the decrease look more dramatic.

“Container cargo in 2016 reached nearly 6.8 million TEUs, about 5% down from 2015,” Lee Peterson of the Port of Long Beach tells GlobeSt.com. “The bankruptcy of Hanjin Shipping in August impacted our container cargo numbers in the second half of the year.”

While the year was off to a great start, actually outperforming 2015, the Hanjin Bankruptcy in the summer derailed the port's growth. “At the start of 2016, we did not anticipate that Hanjin would go bankrupt, and that bankruptcy affected our cargo numbers,” says Peterson. Following the bankruptcy, cargo volumes at the port fell consistently in the last quarter of the year. In December, cargo volumes fell 8% over 2015, while imports alone fell 8.2% and exports decreased 2.5%. At the yearend, the numbers for overall cargo came in at 6,775,171 TEUs with imports at 3,442,575 TEUs, down 5%; exports at 1,529,497, up 0.3%; and empty containers at 1,803,098, down 11.7%.

This year, the port expects to rebound completely, especially with its ongoing modernization efforts. “For 2017, we'll expect to see cargo volumes at levels similar to 2016. The forecast nationally is for trade growth of 2% to 3%,” says Peterson. “In Long Beach, this will be a transition year here as the MSC subsidiary TIL takes over sole control of the lease at Pier T. You have to remember that our Pier T is a premier container terminal, with outstanding assets in terms of container yard size and configuration, depth of dockside water, on-dock rail facilities, and more. We're sure that Pier T will rebound in 2017, given the new lease agreement.”

LOS ANGELES—The Port of Long Beach closed 2016 strong, despite a difficult year. Due in part to the Hanjin Bankruptcy and new carrier alliances, the Port of Long Beach cargo volumes fell 5.8% for the year from 2015. While that sounds like a steep decrease, the year actually ranked fifth overall for the Port. Additionally, 2015 was the best year on record, making the decrease look more dramatic.

“Container cargo in 2016 reached nearly 6.8 million TEUs, about 5% down from 2015,” Lee Peterson of the Port of Long Beach tells GlobeSt.com. “The bankruptcy of Hanjin Shipping in August impacted our container cargo numbers in the second half of the year.”

While the year was off to a great start, actually outperforming 2015, the Hanjin Bankruptcy in the summer derailed the port's growth. “At the start of 2016, we did not anticipate that Hanjin would go bankrupt, and that bankruptcy affected our cargo numbers,” says Peterson. Following the bankruptcy, cargo volumes at the port fell consistently in the last quarter of the year. In December, cargo volumes fell 8% over 2015, while imports alone fell 8.2% and exports decreased 2.5%. At the yearend, the numbers for overall cargo came in at 6,775,171 TEUs with imports at 3,442,575 TEUs, down 5%; exports at 1,529,497, up 0.3%; and empty containers at 1,803,098, down 11.7%.

This year, the port expects to rebound completely, especially with its ongoing modernization efforts. “For 2017, we'll expect to see cargo volumes at levels similar to 2016. The forecast nationally is for trade growth of 2% to 3%,” says Peterson. “In Long Beach, this will be a transition year here as the MSC subsidiary TIL takes over sole control of the lease at Pier T. You have to remember that our Pier T is a premier container terminal, with outstanding assets in terms of container yard size and configuration, depth of dockside water, on-dock rail facilities, and more. We're sure that Pier T will rebound in 2017, given the new lease agreement.”