The Port of Los Angeles reports record-breaking cargo volumes for July, as shippers rush to get ahead of potential disruptions from an anticipated strike at East and Gulf Coast ports.
Record Cargo Volumes Amid Strike Fears
The Port of Los Angeles has witnessed a historic surge in cargo volumes, handling nearly 940,000 twenty-foot-equivalent units (TEUs) in July. This marks the highest total for the month in the port’s 116-year history. The port also reported a 37% year-over-year increase in TEUs, and is currently 18% ahead of its cargo volume pace for 2023.
Early Arrival of Holiday Goods
Gene Seroka, the executive director of the Port of Los Angeles, attributes this increase to an early influx of year-end holiday goods. Shippers are accounting for potential delays due to an anticipated strike at East and Gulf Coast ports in the fall. “These goods – think toys, electronics, and clothing – are arriving at the same time as more typical back-to-school, fall fashion, and Halloween merchandise,” Seroka said.
Retailers Pivot to West Coast Ports
In anticipation of a work stoppage at East/Gulf Coast ports, retailers have adjusted their shipping schedules for 2024, with many shifting to West Coast ports. In June, West Coast ports handled more than half of the U.S. cargo tracked by the National Retail Federation (NRF) for the first time in three years. The NRF projects a 19.2% year-over-year increase in total TEUs at U.S. ports overall in August as the early peak shipping season continues.
Strike Preparations Underway
The International Longshoremen’s Association (ILA) is planning a two-day “marathon session” on September 4-5 to prepare its members for a potential strike as early as October 1. Negotiations between the ILA and the United States Maritime Alliance (USMX) have been on hold since June, following the union’s concerns over automated systems being used at several ports.
