POLA and POLB see strong 2016 volumes over all

Despite mixed volumes and fluctuating data points 2016 ended up being a good, and in some cases, great, volume year for the both the Port of Los Angeles (POLA) and the Port of Long Beach (POLB).

POLA and POLB are the two largest North American ports, and they collectively account for more than 40 percent of U.S. imports.

Total 2016 POLA volume was up 8.5 percent compared to 2015 at 8,856,782 TEU (Twenty-Foot Equivalent Units) and set a new all-time volume record for a Western Hemisphere port, POLA said, topping the previous record of 8,469,853 TEU set by POLA in 2006.

For the month of December, POLA volume was up 27 percent annually at 796,536 TEU for its busiest December and fourth quarter in its entire 110-year history. Imports were up 22.6 percent at 394,217 TEU, and exports were up 25.6 percent at 164,900. And empties rose 36.7 percent to 237,418 TEU.   

“I salute our industry stakeholders and thank Mayor Garcetti and the policymakers and agencies at the state and federal level that have supported our various Supply Chain Optimization initiatives over the past year,” said Port of Los Angeles Executive Director Gene Seroka in a statement. “To handle this much volume with minimal issues is an extraordinary accomplishment and demonstrates our capability-building efforts here in the San Pedro Bay complex.”

Among the various factors driving POLA growth was CMA CGM recently acquiring the APL terminal in Los Angeles at Pier 300,” he said. “

“CMA CGM brought in a vessel string POLA from across the bay that has spiked our numbers as well,” said POLA Media Relations Manager Philip Sanfield in a recent interview. “It is really a combination of organic growth and CMA CGM bringing in an additional vessel service and the displaced Hanjn cargo that had been going exclusively to Long Beach, with some of it now spilling over into Los Angeles.”

Another factor working in POLA’s favor, he pointed out, is that over the last several months cargo moving into and out of POLA is moving with speed, efficiency, and reliability compared to just a few years ago, when he said the pace of cargo movement was crawling.

The improvements speak to changes the port has made for supply chain optimization tactics for things like chassis operations and turn times or working with various port stakeholders to ensure it can handle all of the cargo, which has proven to be effective, especially in recent months, with high cargo volume numbers and no major logistical issues.

POLB reported that total 2016 volume dropped 5.8 percent annually compared to 2015 at 6,775,171 TEU. Despite this decline, this tally marks the fifth highest tally ever recorded for the port.

POLB officials said that the port saw volume drop, due to new ocean carrier alliances and Hanjin Shipping declaring bankruptcy in August. Hanjin was a former majority stakeholder at the port’s largest container terminal, the 381-acre Pier T. And at the end of 2016 the POLA Harbor Commission signed off on an agreement for a subsidiary of Mediterranean Shipping Company to take over Pier T.    

“As the new year starts, we’re grateful to be able to put the Hanjin bankruptcy behind us,” said Port of Long Beach Interim Chief Executive Duane Kenagy in a statement. “At the same time, MSC’s quick interest in Pier T once it became available shows the facility’s value to the industry. We’re looking forward to a mutually beneficial partnership with MSC and the 2M Alliance.”

December POLB volume was down 8 percent annually at 548,929 TEU. Imports fell 8.2 percent to 271,599 TEU, and exports were down 2.5 percent to 122,933 TEU. Empties saw an 11.4 percent decline to 154,397 TEU. 

Commenting in POLA and POLB volumes in a research note, KeyBanc Capital Markets analyst Todd Fowler wrote tha container imports remained strong through December, likely reflecting seasonality associated with a later holiday peak, improved inventories, and a stronger U.S. dollar.

“Trends are consistent with anecdotal commentary suggesting more seasonal freight activity in recent months, which, combined with leaner inventories, could support additional restocking activity in early 2017,” noted Fowler.