LOS ANGELES—The Hanjin bankruptcy dampened productivity at the Port of Long Beach during the month of September. Hanjin shipping containers account for 12.3% of cargo volumes at the Port of Long Beach, and the bankruptcy reduced both containers on vessels and reduced calls by Hanjin-operated ships. As a result, port cargo volumes were down 16.6% for the month of September.

Because of the Hanjin bankruptcy, the port anticipated a decrease in port volumes. “We expected the cargo volume to be reduced from last year,” Lee Peterson with the Port of Long Beach, tells GlobeSt.com. “One reason was the Hanjin bankruptcy right at the end of August, and the fact that September last year was very strong. This was about the reduction that we expected.”

While the Hanjin bankruptcy is pinpointed as the cause of slowdown, the Port of Long Beach has seen decreasing year-over-year cargo volumes for the last two months. On July, port volumes were down 7.7% and in August, port volumes were down 9%, despite a double-digit spike in export volumes. Each month, the port maintains a strong outlook, and this month was no different. “We may see some gains in October, there is probably not the opportunity to 'make up the losses' in one month,” says Peterson about his expectation of cargo volumes in the future. “We don't see September's numbers having a long-term impact, nor do we expect that Hanjin's bankruptcy will have a long-term effect on the Port of Long Beach.”

The port is working, as always, to increase cargo volumes and improve business. When asked what they are doing to resolve the Hanjin bankruptcy, Peterson says, “We're always working with the industry to build the business relationships that keep the cargo coming through the Port of Long Beach, but that's just part of our ongoing efforts, not because cargo was down in September,” adds Peterson.