(Bloomberg) -- The busiest container complex in the US continues to churn through near-record import volumes as businesses bring goods in ahead of potential tariff increases and the threat of a dockworker strike hangs over alternate ports.
The ports of Los Angeles and Long Beach, which account for roughly a third of all US container imports, have seen a surge this summer just shy of an all-time high reached in May 2021. Back then, a wave of inbound consumer goods caused supply bottlenecks on land and a queue of cargo ships waiting for a berth offshore was getting longer by the day.
This time around, cargo is moving more smoothly through the twin ports, at least for now. While some analysts think the early peak season will fade soon, better-than-expected retail sales out Tuesday indicate the economy is still resilient.
Meanwhile, tens of thousands of dockworkers are poised to walk out of East and Gulf coast ports when their contract expires on Sept. 30, global shipping capacity is stretched from ongoing attacks on vessels in the Red Sea, and the threat of escalating trade wars are all flashing warning signs to importers that could keep them sending more cargo through Southern California.
“Some of the cargo arriving now is replenishing inventories even beyond the year-end holiday season,” Port of Los Angeles Executive Director Gene Seroka said in prepared remarks Wednesday. “Combined with a steady flow of manufacturing parts and components, we should continue to see elevated volumes in the near term.”
Last month, the Port of LA handled 509,363 units of imports measured in 20-foot containers, 17.6% more than the previous August. Exports edged down 2.6% to 121,744 units and empty containers climbed 22.1% to 329,491.
Next door, the Port of Long Beach had its busiest month on record in August, which CEO Mario Cordero credited last week with cargo diversions from other coasts and concerns about upcoming tariffs.
Cargo handlers moved nearly 914,000 twenty-foot equivalent units across the docks at Long Beach in August, up 33.9% from the same month last year. That figure includes 456,868 loaded import containers, 104,646 of exports, and 352,360 empty containers.
Despite the busy peak season, Cordero said the hub was operating smoothly and ready for more.
“We’re prepared for the uptick in shipments and continued growth through the rest of the year with a dedicated waterfront workforce, modern infrastructure and plenty of capacity across our terminals,” he said.
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