Mario Cordero Mario Cordero

"I want to declare 2020 the year of collaboration," said Mario Cordero, executive director at the Port of Long Beach, during the annual State of the Port event. Last year, cargo volumes at the Port of Long Beach fell compared to 2018 as a result of political acrimony with China. This year, to push past obstacles, the port is leaning on its labor and tenants.

"At the end of the day, we need to be ready for whatever may come. We need to compete; we need to innovate; we need to lead; and most of all, we need to collaborate," said Cordero.

Last year, the port faced challenges as a result of the trade tariffs with China. This impacted the Port of Long Beach and Los Angeles the most severely. "This past year, the tariff war with China—our largest trading partner—escalated. Import and export orders declined," said Cordero. "Our cargo container volume dropped 5% from the previous year to 7.6 million TEUs. Our overall cargo tonnage also dropped. Because much of our trade is with China, our cargo volumes fell behind other US ports that are not as tied to the Trans-Pacific trade route. Never the less, 2019 was our second busiest year for container cargo."

There is good news ahead. The current administration is working on easing the current trade tensions; however, the negotiations haven't totally eased concern. "We have recently seen progress," said Cordero. "The Trump Administration has just signed a phase-one trade agreement with China. More markets will open to American companies as China eases tariffs on US goods. US farm and energy exports will increase, still the agreement preserves the bulk of existing US tariffs on goods from China. Uncertainty remains within the industry."

While these disputes have significantly impacted cargo activity at the port, the overall economic outlook for the US is strong, and the country is positioned for stability in the year ahead. "As we will await further progress, economic fundamentals remain strong," said Cordero. "Unemployment, interest rates and inflation are low. I see better times ahead, but weakness in global trade slowed US manufacturing in the last half of 2019 and business investment has declined."

The combination of market fundamentals and the team at the Port of Long Beach has renewed confidence in cargo activity this year. "A key component to our competitive edge is the productivity and skill of our tenants and labor," said Cordero. "This is why the Port of Long Beach is the port of choice. We have the big terminals, the tallest cranes and deep water, and our terminal operators, long shore workers, rail operators, truckers and other stakeholders are world class."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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