Port Cargo Volumes Yo-Yo with February Dip

LOS ANGELES—Cargo volumes at the Port of Long Beach are yo-yoing after a strong start to 2017. In February, cargo volumes were down 11.2$ year-over-year and down from the previous month. After suffering decreasing volumes in 2016, due to impacts from the Hanjin Bankruptcy, January cargo volumes were up 8.7%. The fall February is likely due to the Lunar New Year, which slows exports from China, a major client at the Port of Long Beach.

“Lunar New Year was two weeks later last year, and most of the effect was in March although that effect was muted by other factors,” Lee Peterson, the communications lead at the Port of Long Beach, tells GlobeSt.com. “This year, Lunar New Year was at the end of January. The effect of businesses in Asia shutting down for two weeks was felt most in February, due to the time it takes for cargo ships to transit the Pacific. The decline is also due to the fact that February 2016 was a record month for the Port of Long Beach.”

Because the Port of Long Beach receives so many imports from China, Lunar New Year always has an effect on the port's cargo volumes. The earlier onset of the New Year, on January 28, pushed the effects to the month of February, however, will likely mean that March will perform better compared to last year. “Lunar New Year, or Chinese New Year as most people seem to call it, will nearly always have an effect on cargo flow to this Harbor,” adds Peterson. “In those two weeks, many Asian businesses are idled and the flow of cargo starts to slow a few  weeks after the New Year. Since it's on the lunar calendar, the date moves around each year, and it doesn't always have an effect.”

While the Lunar New Year always has an effect, in the past, simultaneous events have muffled that impact, according to Peterson. For example, in 2015, labor disputes at the port, which nearly led to a strike, occurred at the same time as Lunar New Year. “Sometimes other issues will have more of an effect on the cargo flow, and the effect of lunar new year is muted,” says Peterson. “In 2015, cargo traffic in first two months of the year was slow due to the contract issues between management and labor, not because of the lunar new year. By March 2015, the new contract agreement had been reached, and cargo flowed quickly. In 2016, we had a very busy January and February comparatively speaking, because it was so slow in 2015.”

LOS ANGELES—Cargo volumes at the Port of Long Beach are yo-yoing after a strong start to 2017. In February, cargo volumes were down 11.2$ year-over-year and down from the previous month. After suffering decreasing volumes in 2016, due to impacts from the Hanjin Bankruptcy, January cargo volumes were up 8.7%. The fall February is likely due to the Lunar New Year, which slows exports from China, a major client at the Port of Long Beach.

“Lunar New Year was two weeks later last year, and most of the effect was in March although that effect was muted by other factors,” Lee Peterson, the communications lead at the Port of Long Beach, tells GlobeSt.com. “This year, Lunar New Year was at the end of January. The effect of businesses in Asia shutting down for two weeks was felt most in February, due to the time it takes for cargo ships to transit the Pacific. The decline is also due to the fact that February 2016 was a record month for the Port of Long Beach.”

Because the Port of Long Beach receives so many imports from China, Lunar New Year always has an effect on the port's cargo volumes. The earlier onset of the New Year, on January 28, pushed the effects to the month of February, however, will likely mean that March will perform better compared to last year. “Lunar New Year, or Chinese New Year as most people seem to call it, will nearly always have an effect on cargo flow to this Harbor,” adds Peterson. “In those two weeks, many Asian businesses are idled and the flow of cargo starts to slow a few  weeks after the New Year. Since it's on the lunar calendar, the date moves around each year, and it doesn't always have an effect.”

While the Lunar New Year always has an effect, in the past, simultaneous events have muffled that impact, according to Peterson. For example, in 2015, labor disputes at the port, which nearly led to a strike, occurred at the same time as Lunar New Year. “Sometimes other issues will have more of an effect on the cargo flow, and the effect of lunar new year is muted,” says Peterson. “In 2015, cargo traffic in first two months of the year was slow due to the contract issues between management and labor, not because of the lunar new year. By March 2015, the new contract agreement had been reached, and cargo flowed quickly. In 2016, we had a very busy January and February comparatively speaking, because it was so slow in 2015.”