Container volumes at the Port of Los Angeles surged in October, maintaining a robust pace while the port demonstrated improved efficiency in moving containers to inland destinations.
The total container volume reached 905,025 twenty-foot equivalent units (TEUs), a 25% increase from 725,774 TEUs in October 2023. Imported loaded containers totaled 462,740 TEUs, up 24% from 372,454 TEUs year-over-year, while loaded exports remained steady at 122,716 TEUs compared to 121,277 TEUs a year ago. The port also handled 319,570 empty TEUs, marking a 38% rise from 232,043 TEUs in the same period last year.
October marked the fourth consecutive month of volumes surpassing 900,000 TEUs, a milestone attributed to strong retail sales and declining interest rates, according to Port Executive Director Gene Seroka. During a media presentation, Seroka highlighted the resilience of consumer demand and a robust economy. He also noted that some shippers opted for Los Angeles over East Coast ports to avoid potential labor disruptions and that additional direct trans-Pacific services contributed to the growth.
Year-to-date, the port has processed 8,491,420 TEUs, a 19% increase from 7,123,900 TEUs during the same period last year. Nationwide, SONAR data indicates an 8% year-to-date rise in inbound container volumes.
“Port of Los Angeles volumes have reached historic highs,” said SONAR analyst Mike Baudendistel at the F3: Future of Freight Festival in Chattanooga, Tennessee. “Demand has remained steady throughout the year.”
Volumes also benefited from disruptions in the Red Sea, which caused a 90% drop in Suez Canal receipts as carriers rerouted Asia-to-North America shipments around the Horn of Africa. Seroka noted that supply chain disruptions impacted retailers like Target, which missed earnings expectations partly due to additional costs from the October labor strike at East Coast ports by the International Longshoremen’s Association.
Despite record traffic, container dwell times—a critical performance metric—have improved significantly. In response to FreightWaves, Seroka reported that the number of inbound Asia containers awaiting rail loading for nine or more days dropped from over 9,000 to about 2,300 in recent weeks. This is a significant improvement from pandemic levels, where 22,000 rail-bound containers lingered for nine or more days. Rail carriers, including BNSF, Union Pacific, and Pacific Harbor Line, have played a crucial role in expediting cargo movement to inland destinations. Average dwell times now range between 6.5 and 8.5 days, with the port aiming to reduce this to pre-pandemic levels of two to three days.
Looking ahead, Seroka expressed optimism for continued growth through the end of 2024 and into 2025, driven by factors such as falling interest rates, low unemployment, and strong consumer spending. He noted that shippers are frontloading goods ahead of anticipated tariffs under the incoming Trump administration and acknowledged ongoing security challenges in the Red Sea. After the Lunar New Year on January 29, the port anticipates a seasonal slowdown in February, followed by inventory replenishment by retailers and importers in March.
Source: www.lbbusinessjournal.com
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