Early 2018 Cargo Volumes Break Records

The Port of Long Beach is following up the record-breaking trade volumes in 2017 with another record-breaking year. For the fourth consecutive month, the Port of Long Beach has seen an increase in cargo volumes, surpassing the cargo numbers from the first four months of 2017, the previous record. In April, cargo volumes at the port increased 11%, and for the first four months of the year, container volumes are up 17% over last year. As a result, the Port of Long Beach expects cargo volumes for the year to increase 7%, setting a new record.

“There are multiple factors for the activity this year,” Lee Peterson of the Port of Long Beach, tells GlobeSt.com. “For one thing, there’s simply an increase in trade due to strong consumer demand, and that’s something the National Retail Federation for example has documented. Meanwhile, there is also word that we are seeing additional cargo due to trade tensions, as companies seek to get products overseas before the implementation of new tariffs increases prices for those products.”

Import containers for the month increased 8.4%, which isn’t unusual. Exports, however, jumped up 22%, which is unusual, considering exports have been trending down over the long term. “Some of the export increase is likely due to the fact that buyers of the exports are looking to get as much product overseas now, before the new tariffs take effect,” says Peterson. “For example, we could see tariffs on exported nuts, pork, wine, scrap aluminum and more, so exporters are moving it overseas now.”

The activity at the Port of Long Beach translates, generally, to strong economic activity and consumer spending. “The robust activity means we have strong consumer demand for products, both export and import, and we are seeing the beneficial effects of international trade throughout the economy,” explains Peterson. “Trade that flows through the Port of Long Beach sustains more than 300,000 jobs in Southern California, and if trade increases that means more jobs.”

In addition to the economy fueling activity, the Port of Long Beach has also focused on modernization efforts and updates to remain competitive internationally and with other domestic ports. These projects have helped to fuel activity at the port this year.  “We have done quite a bit to modernize and improve our facilities and we see the benefits in our ability to handle the largest ships and process them quickly,” says Peterson. “We invested our earnings back into the Port, and those upgrades have strengthened our competitiveness.”