Hot summer streak for Port of LA

The Port of Los Angeles handled 939,600 TEU in July, a 37% increase over the previous year, making it the best July in the port’s 116-year history and the busiest month in more than two years.

The port said that seven months into 2024, it is 18% ahead of its 2023 pace with 5,671,091 TEU moved. That being said the growth rates are being compared to low numbers from 2023. In 2023, the Port of Los Angeles recorded its lowest yearly throughput in three years with 8.8 million TEU, compared to 9.9 million TEU in 2022, 10.6 million TEU in 2021, and 9.2 million TEU in 2020. Out of the twelve months, seven saw lower monthly figures than in 2022.

“We’ve seen an influx of year-end holiday goods coming across our docks a bit earlier than usual to avoid any risk of delay later in the year,” Port of Los Angeles Executive Director Gene Seroka said at a media briefing. “These goods – think toys, electronics and clothing – are arriving at the same time as more typical back-to-school, fall fashion and Halloween merchandise. An early peak season has helped to boost volumes here in Los Angeles.

“I’m grateful to our dedicated dockworkers, terminal operators, truck drivers, and all other stakeholders who work tirelessly every day to move all this cargo with remarkable speed and efficiency,” Seroka added.

July 2024 loaded imports led the way landing at 501,281 TEU, a 38% spike compared to the previous year. This is the fourth time the port’s imports have exceeded the half million import mark with the most recent occurring in May of 2021 during the height of the pandemic. Loaded exports came in at 114,889 TEU, an increase of 4% compared to last year. However, the reality is that that the port of LA is only returning to 2019 export levels. The port processed 323,431 empty containers, a 54% jump compared to 2023.

According to Seroka, the key drivers behind strong container volumes at the port include the robust US economy, LA’s capacity to handle more cargo and various external factors.

“We’re now seeing an influx of year-end holiday goods coming across our docks a little bit earlier than usual. Importers have told me that with issues in the Red Sea and ongoing East Coast labour talks, they’re being extra cautious this year. Therefore, holiday products, toys, clothing, footwear and electronics are arriving now to avoid risk later in the year and these goods are coming at the same time as more typical back-to-school, fall fashion, and Halloween merchandise. Simply put, an early peak season has boosted volume at the Port of Los Angeles,” Seroka said.

The port is bracing for a robust August with volume at or above the 850,000 TEU mark, based on the estimates from its Port Optimizer data portal.

Speaking at the briefing, Director of Transportation Consulting for S&P Global Market Intelligence Paul Bingham, said that global economic growth is expected to remain relatively flat in 2025 compared to 2024. However, the growth distribution will shift, with anticipated slower growth in the United States and China, while countries in Europe, Canada, and Japan are projected to experience faster growth. Import growth, which surged strongly in 2024, is expected to continue but at a slower pace in 2025. Despite the slower growth, a recession is not forecasted; rather, trade will slow from a higher base.