Port of Los Angeles has busiest first quarter ever

The Port of Los Angeles had its busiest March and first quarter ever, handling nearly 2.6 million TEU in the three months to March 2021.

The port moved 95,799 20-foot equivalent units (teu) in March this year, a sharp increase from 449,568 teu at the time of the outbreak last year, the port said on April 14.

March was also the third busiest month on record for the port. “The surge in consumer spending has continued unabated, more of us are vaccinated, businesses are open, and the economic outlook looks strong,” said Gene Seroka, the port’s executive director. "Consumers are spending as fast as importers are buying."

　Port throughput in March increased year-on-year for the eighth consecutive month, mainly driven by one-way trade imports. During this period, the port averaged around 900,000 TEU per month, setting its own record.

　The port completed 490,115 boxes of imported goods, a year-on-year increase of 122.5%. Seroka said strong consumer demand for furniture, household goods and appliances, sports equipment and auto parts drove record imports.

Exports in March were 122,899 TEU, up just 1.5% from March 2020.

The port is expected to maintain strong throughput in the second quarter. According to preliminary estimates, the cargo volume in April was 880,000 TEU, a year-on-year increase of 20%, and the cargo volume in May was expected to be 840,000 TEU, a year-on-year increase of 45%.

　For the first time in the fiscal year ending June 30, the port is on track to top 10 million TEU.

　On April 14, 20 ships were moored atsan pedroBay, nine of which will be docked at the Port of Los Angeles, down from a peak in February when the port was dealing with congestion and about 40 ships at anchor.

The Port of Los Angeles is the largest container gateway in North America.

　Exports rose sharply in March, with port throughput of 344,585 TEU, up 219% year-on-year.

　"Based on our assessment, it is faster for ocean carriers to bring empty ships to loading ports in Asia than to deliver containers to exporters here," Seroka said.

This is in line with current price dynamics on trans-Pacific routes.

Since export or return rates from the North American West Coast to North Asia are currently much lower than inaugural voyage rates, ocean carriers have little economic incentive to load North American export cargo, which is often low-value agricultural products and raw materials.

　Platts container rate 14 (North America West Coast to North Asia) was set at $650/FEU on April 14, significantly lower than the headhaul rate of $4,000/FEU.

　　adjoininglong beachThe Port of Long Beach reported April 8 that it shipped 840,387 TEUs in March, the busiest month in the port's history.

　　at the same time,AucklandThe port had its busiest month on record, handling 241,470 TEU containers, the port said on April 13.

　　"Vessels are full, ocean freight rates are extremely high, and there's an insatiable demand for empty containers," said Bryan Brandes, maritime director at the Port of Oakland. "We don't think the situation will ease in the next few months."