Mixed Signals at U.S. Ports: Summer Surge Expected Despite Volume Fluctuations

The U.S. port numbers for May 2024 are in. While the results are mixed, certain facilities are seeing volume gains, while some of the nation's largest ports saw container traffic decline. Here's a breakdown of each port's number and what it could mean for the future, especially with the summer season upon us.

Port of Los Angeles

• The Port of Los Angeles processed 752,893 20-foot equivalent units for the month of May. A 3% decline from the 779,140 moved around this time a year ago. However, container volumes for the first five months this year are still up 18% year-over-year.
• This trend has Port of LA Executive Director Gene Seroka foreshadowing "more robust activities on our docks throughout the summer."

Port of Long Beach

• Port of Long Beach reported that May containers volumes decreased 8.2% year-over-year, dropping from 758,225 to 695,937 containers. Despite the decrease, container volumes (like in LA) are up 10% when compared to a year ago.
• Port of Long Beach CEO Mario Cordero is, "Anticipate a moderate increase in cargo as we moved into the summer."

Port of Oakland

• Port of Oakland reported container volumes increased 5.3% year-over-year, up 188,040 from the 178,513 containers a year ago. These gains are mostly from import cargo volumes.

Northwest Seaport Alliance

• Ports of Seattle and Tacoma, Wash., reported a combine 20.6% increase, going up 277,388 TEUs from the 229,974 record a year ago. Voyage consistency, increased vessel calls and low import rail are the reason for strong container volumes in the region. Container volumes are up 8.2% the first five months this year, 1,235,446 in total.

Port Houston

• Port Houston reported a 21% year-over-year volume increase to 364,866 container from 307,879 a year prior. Robust construction, manufacturing within the state of Texas and regional consumers are the reason for much increase. Currently, consumers in the area are buying furniture, hardware and retail goods.
• MV/OOCL Bermerhaven had its inaugural maiden voyage in May, with Executive Director Roger Guenther raving about the new vessel giving "exceptional customer service."

Georgia Ports Authority

• The strengthening of the retail market, along with business with new customers is said to be the cause of the increase in container volume in Georgia's ports with a reported increase of a staggering 22% year-over-year, up 490,330 from 408,686.
• GPA President Griff Lynch commented that the new Hyundai Meta Plant and an increase in their orders to rebuild inventories and meeting the rise in consumer demands is the cause of this increase.

One can only imagine what the numbers will be like once the summer is in full swing, but there is surely loads to optimize when it pertains to the increases in containers. Hopefully, this will trickle down to more freight demands and create an uptick in rates across the market.

Source: Transport Topics