Total volumes came to 678,429 TEU, down nearly 225,000 TEU from October 2021. Loaded imports dropped to 336,307 TEU, a drop of 28% on the year, while loaded exports came to 89,722 TEU, down 8.7%.

Retreating cargo throughput, which began in earnest in August of this year, led to the lowest October volume since 2009, with volumes 22% below the five-year average.

“[Declining cargo volumes were] even more pronounced in October which is traditionally one of our stronger months,” said Port Executive Director Gene Seroka in a briefing Nov. 15.

Seroka attributed the performance to bearish importers diverting imports to US East/Gulf Coast gateways, an unusually early peak season in June and July of this year, and a drop-off in durable products purchasing as consumer appetite shifted away from goods.

All of this against the backdrop, Seroka added, of inflation and global macroeconomic headwinds which have pressured demand.

“We’ll do everything in our power to get that cargo back because the best route between Asia and the United States is straight through the Port of Los Angeles.” Seroka said. .

Labor negotiations remain unsettled

Longshore labor union contracts remain unresolved and at standstill after six months of negotiations, the uncertain outcome of which has led many shippers to reallocate cargoes to different ports.

“If [the] ILWU figures it out and gets signed, we would get more volumes into Los Angeles/Long Beach,” a large footwear importer told S&P Global Commodity Insights.

As it stands, sentiment holds that a deal will not be struck before the end of the year, although the potential for a widespread strike remains unlikely.
“I’d encourage both parties to get that done sooner than later … let’s knock this out, let’s get it done,” said Los Angeles Mayor Eric Garcetti, a guest at the port’s cargo briefing.

USEC ports remain fluid

On the US Atlantic Coast, where import volumes remain healthy as demand for USEC-bound cargo remains firm against those to the USWC, ports have continued to notch strong numbers.

South Carolina Ports handled 256,879 TEU during October, the port said Nov. 15, up 9% against the year. Loaded imports came to 121,305 TEU, up just under 13% on the year.

October was the third busiest month in the port’s history.

Elsewhere, the Port of New York/New Jersey moved 842,219 containers in September, over 130,000 more than the Port of Los Angeles during the same month.

Port of New York cargo volumes for October had not yet been published.

“One or two months [of NY/NJ volume beating LA] is not going to create a trend,” Seroka said. “This does start with giving confidence to the marketplace with a labor agreement. There’s still skepticism … [shippers] need to feel that certainty with cargo flow and getting into market in time.”

Container freight spot pricing reflected this trend, as rates on Platts’ key Far East-US West Coast route were assessed Nov. 15 at $1,300/FEU, $2,500 below the Far East-US Atlantic Coast assessment of $3,800/FEU.

Source: Platts