![\"\"](\"https:\/\/s29755.pcdn.co\/wp-content\/uploads\/2022\/09\/la-stats-1200x507.jpg.webp\")
It was the lowest import total in Los Angeles for any month since December, when volumes were suppressed by extreme landside congestion.<\/p>\n
It was also the lowest import total in LA for the month of August since 2014, eight years ago, back when Barack Obama was president and Pharrell Williams\u2019 \u201cHappy\u201d topped the charts.<\/p>\n
But last month\u2019s import plunge in Los Angeles is not indicative of a countrywide trend.\u00a0According to data from Descartes<\/a>, U.S. imports in August were essentially flat compared to July. The nationwide import total was up 18% versus August 2<\/p>\n Los Angeles\u2019 performance stands in stark contrast to the blowout numbers\u00a0just announced by the Port of Savannah in Georgia<\/a>. Savannah handled 290,915 TEUs of loaded imports in August, by far the highest tally in the port\u2019s history.<\/p>\n Savannah\u2019s August imports were up 15.6% from July, 14.7% from the previous record month in May, 20% y\/y \u2014 and 34% versus August 2019, pre-COVID.<\/p>\n During a news conference Thursday, Port of Los Angeles Executive Director Gene Seroka pointed to multiple reasons for the drop.<\/p>\n \u201cSome of the cargo that usually arrives in August for our fall and winter seasons is already here,\u201d Seroka said. \u201cCargo owners who expected longer lead times shipped earlier in order to guarantee delivery schedules. This just-in-case strategy versus the traditional just-in-time approach has been widespread in the market.\u201d<\/p>\n Meanwhile, with 8.3% inflation, Seroka said \u201cconsumers are naturally getting a bit anxious, as are retailers. We\u2019re starting to see canceled production orders out of Asia.\u201d<\/p>\n Another reason for weaker August numbers, as highlighted by the booming stats out of Savannah: Imports have shifted to the East and Gulf coasts at the expense of West Coast ports.<\/p>\n \u201cSome shippers diverted cargos to East and Gulf Coast ports in order to avoid port congestion and as a possible hedge against West Coast labor contract negotiations,\u201d Seroka said. \u201cConsequently,\u00a0those ports have substantial backlogs<\/a>, while here in Los Angeles, we have very little congestion.\u201d<\/p>\n Yet another driver of August\u2019s drop: local competition from Long Beach, the port next door. A substantial volume of cargo shifted to Long Beach from Los Angeles. Long Beach imported 384,530 TEUs of cargo in August, up 2.2% from July.<\/p>\n Asked by American Shipper about the cause of the local shift, Seroka said, \u201cThere are some discussions on the ground between union leadership and the folks over at APMT [APM Terminals] about health and safety measures around the automated area.\u201d<\/p>\n This led to a shift of around 40,000 TEUs from Los Angeles to Long Beach in August, he disclosed. (This equates to around half of LA\u2019s sequential import drop in August versus July.) Seroka said that shift to Long Beach could be even higher this month: 60,000-80,000 TEUs.<\/p>\n He maintained that the shift will be temporary and the situation will \u201cget back to normalcy between Los Angeles and Long Beach very soon.\u201d<\/p>\n Seroka expects the volume pullback to continue in the months ahead.<\/p>\n \u201cThe bottom line is that we\u2019re projecting lighter numbers in September and for the balance of the year,\u201d he said. \u201cBut to keep things in perspective, even with this projected softer volume in the back half of the year, the Port of Los Angeles is headed toward the second busiest year in our history.\u201d<\/p>\n Source: https:\/\/www.maritimeprofessional.com\/<\/p>\n <\/p>\nDemand drivers of decline<\/h2>\n
Competitive drivers of decline<\/h2>\n
More LA volume weakness ahead<\/h2>\n
![\"CREWEXPRESS](\"http:\/\/shipip.com\/wp-content\/uploads\/2022\/08\/crewexpress-stcw-psc.jpg\")
<\/a><\/p>\n