In September, rail container stoppages at the ports of Los Angeles and Long Beach soared to the highest level in two years, largely as the largest U.S. port complex handled record Asian imports, driven in part by retailers to avoid port strikes on the East and Gulf coasts and to move goods early. Although the Los Angeles-Long Beach Complex's container through-truck stop time reached its highest level since October 2023, the dock operator said an average of 3.21 days of stoppage time did not cause congestion.
LOS ANGELES - LONG BEACH HANDLED 874,730 STANDARD BOXES OF ASIAN IMPORTS IN SEPTEMBER, BREAKING THE RECORD OF 873,196 STANDARD BOXES SET DURING THE POST-CORONAVIRUS IMPORT BOOM IN MAY 2022, ACCORDING TO DATA FROM THE WALL STREET DAILY PIERS; ACCORDING TO DATA FROM THE PACIFIC SHIPPING ASSOCIATION (PMSA), SEPT. Record Imports Increase Average Time for Rail Containers in Los Angeles - Long Beach Port to 9.25 Days from 8.2 Days in August to 9.25 Days in 2022 The highest value since 14.2 days of the month.
Some freight agents reflected that their containers were stranded in parts of Los Angeles-Long Beach for more than 10 days before being picked up. Alan McCall, president of the Los Angeles Postage Wharf, said their dock inventory is three times normal, which has been going on for about six weeks, while shipping is two weeks away from peak season, and dock operators expect imports to slow down, which is usually an off-season month in November. U.S. IMPORTS FROM ASIA REACHED 176 MILLION STANDARD BOXES IN JULY THIS YEAR, THE HIGHEST LEVEL SINCE MAY 2022, NEAR A TWO-YEAR HIGH. In addition to its normal weekly flights, the carrier deployed an additional 28 cargo ships in September and October to meet the huge import demand from Los Angeles-Long Beach. However, ports are currently scheduled to stop only two additional cargo ships in November, indicating a reduction in import volumes and rail delays.
SOME DOCKS ARE ABLE TO COPE WITH THE PRESSURE OF RAIL CONTAINERS AND AVOID SEVERE CONGESTION, SAID ANTHONY OTTO, PRESIDENT OF LONG BEACH CONTAINER DOCKS (LBCT): “OUR INVENTORY EXCEEDED EXPECTATIONS BY 40%, BUT RAIL DELAYS REMAINED AT AROUND FOUR DAYS, WITH THE POST SHIP DOCKS ACTIVATING TEMPORARY DUMPS AS INVENTORIES SURGE TO SPEED UP UNLOADING Transporting the post-cargo containers, which helps relieve stress.” AS A FULLY AUTOMATED DOCK, LBCT HAS BEEN ONE OF THE MOST EFFICIENT IN RAIL CONTAINER LATENCY AND TRUCK TURNOVER.
Data tracked by PMSA shows that rail and truck container stops at different docks vary depending on operating strategy, terminal facility layout and the number of rail cars on site. Noel Hacegaba, CEO of Port of Long Beach, said the average rail cargo hold time at the port's six container terminals was 7 days, although higher than the 4 days in July, but still below the average time for the Los Angeles-Long Beach Port Composite as reported by the PMSA.
Imports from the Port of Los Angeles are expected to peak at 125,882 standard cases in the week of October 20, before falling to 111,713 standard cases the following week; the Port of Long Beach is expected to decline from 102,756 standard cases the following week to 87,780 standard cases the week of October 27.
November is usually the low season for Eastern Trans-Pacific routes, as most holiday merchandise arrives before the end of October for retailers to sell spare supplies on Black Friday after Thanksgiving. The same is expected this year, if contract negotiations with employers in the Eastern and Gulf of Mexico extend into November, the Port of Los Angeles-Long Beach may continue to account for a larger share of total U.S. imports in Asia. The ILA ended a three-day strike on October 3 and reached an interim wage agreement, while extending the final deadline for contract negotiations to January 15 to allow the two sides to continue negotiations on other key issues. For time-sensitive spring merchandise, retailers may continue to ship through Southern California ports until a final contract is reached, the shipping agent said.
