Surge in imports adding to US West Coast port congestion Container volumes moving through West Coast ports in May were 4 percent higher than during the same month last year, lending support to the theory that higher-than usual cargo volumes are contributing to port congestion. In fact, according to statistics published on the website of the Pacific Maritime Association, total imports and exports at West Coast ports in May were higher than during any month in 2013, including August, which was the peak month last year. It is apparent that many importers shipped early this year in anticipation of the contract negotiations between the PMA and the International Longshore and Warehouse Union. As expected, negotiators did not reach an agreement by Tuesday’s deadline. However, the ILWU and PMA in a joint statement said negotiations would continue and cargo would keep moving. Port congestion has been worse in Los Angeles-Long Beach than at the other West Coast ports. Containerized imports at the Southern California port complex in May increased 6 percent compared to May 2013. Los Angeles-Long Beach in May handled more imports than in any month in 2013, indicating that marine terminals, importers, truckers and distribution facilities were more stressed this spring than during even the peak months of August-October last year. Summer-fall is the peak shipping season when merchandise imports from Asia arrive for the holiday shopping season. It remains to be seen if the early shipping this year will result in a softer peak season during the summer and fall months. Jim McKenna, PMA president, said the surge in imports is having a ripple effect in the supply chain. Import containers cannot be processed quickly enough at distribution facilities, so the containers, and the chassis on which they are mounted, are backing up at the warehouses. This is causing equipment shortages at the seaports. Even if a true peak season does not occur this year, it is beginning to look as if 2014 will be a stronger year in terms of total container volume than 2013. The PMA numbers show that containerized imports and exports moving through West Coast ports were up 4 percent year-to-date through May compared to the first five months of 2013. Total container volume in 2013 increased only 2 percent compared to 2012. Increased exports could contribute to stronger growth in 2014. Exports were sluggish in 2013, with Europe still in recession and China’s economy growing slower than in previous years. Exports this spring began to pick up, with exports through West Coast ports in March, April and May higher than in the corresponding months last year. JOC
Posted on: Thu, 03 Jul 2014 23:14:00 +0000
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