Port Closes Record-Breaking 1Q

So far, 2018 has been the busiest year ever at the Port of Long Beach. Despite Lunar New Year, cargo volumes increased 14% in March, making it the third consecutive month this year that cargo volumes increased. As a result, cargo volumes for the first quarter were up 19.4% over the first quarter 2017. In total, 1.9 million TEUs moved through the port in the beginning of the year. The previous cargo volume record was set in 2007.

“The rising demand for retail goods and other products is keeping volumes high, just in general, because the economy is thriving,” Lee Peterson of the Port of Long Beach tells GlobeSt.com. “Also, shippers are trying to spread out their shipments over the year to the traditionally slower months, to avoid loading up a “peak season.” But it’s largely the demand for imported goods that has fueled the increase this first quarter.”

Cargo volumes throughout 2017 hit record-breaking levels as well, and the momentum has clearly carried into the beginning of the year. While the outlook was strong for cargo activity this year, these numbers exceed expectations. “We are ahead of where we expected to be, and we are seeing that the increases are coming all across U.S. ports, not just at the Port of Long Beach, so we are catching our share of that,” says Peterson.

There are potential challenges ahead, considering the potential for a trade war and the recent tariff announcements. Because cargo is scheduled months in advance, the impact has yet to be seen. “The trade moving through the port right now was lined up months previous, so we aren’t going to see an effect of the tariff f talk just yet,” explains Peterson. “Also, keep in mind that the tariffs in general right now are just proposed, so there wouldn’t be an effect.” The impact of the tariffs is yet to be realized, the port is watching closely. “We’re monitoring the situation. In general, we stand ready to provide information about the beneficial economic impacts of international trade that we see at the Port of Long beach and beyond every day,” adds Peterson.

Even with the potential tariffs, the port is expecting to top the cargo volumes from 2017.  “We still have expectations that 2018 will be even better than last year, which is our busiest year ever,” says Peterson. “So, we only expect modest growth overall his year, but that would still set a new record.”