by Bill McBride on 1/17/2017 11:43:00 AM
Tuesday, January 17, 2017
From the Port of Long Beach: Port Trade Dips to 6.8 Million TEUs in 2016
Slowed by industry headwinds and challenges that included a major customer declaring bankruptcy, the Port of Long Beach still moved almost 6.8 million containers in 2016, its fifth best year ever.Although port traffic decreased in Long Beach, traffic was up in Los Angeles.
Overall cargo declined 5.8 percent in 2016 compared to 2015, as the Port was impacted by new ocean carrier alliances and the August bankruptcy of Hanjin Shipping, a South Korean company and former majority stakeholder at the 381-acre Pier T container terminal — Long Beach’s largest.
By year’s end, the Harbor Commission had approved an agreement for a subsidiary of Mediterranean Shipping Co., one of the world’s largest container ship operators, to take sole control of the long-term lease at Pier T.
Container traffic gives us an idea about the volume of goods being exported and imported - and usually some hints about the trade report since LA area ports handle about 40% of the nation's container port traffic.
The following graphs are for inbound and outbound traffic at the ports of Los Angeles and Long Beach in TEUs (TEUs: 20-foot equivalent units or 20-foot-long cargo container).
To remove the strong seasonal component for inbound traffic, the first graph shows the rolling 12 month average.
Click on graph for larger image.
On a rolling 12 month basis, inbound traffic was up 0.6% compared to the rolling 12 months ending in November. Outbound traffic was up 0.9% compared to 12 months ending in November.
The downturn in exports in 2015 was probably due to the slowdown in China and the stronger dollar. Now exports are picking up a little - but the stronger dollar might impact exports once again.
The 2nd graph is the monthly data (with a strong seasonal pattern for imports).
Usually imports peak in the July to October period as retailers import goods for the Christmas holiday, and then decline sharply and bottom in February or March (depending on the timing of the Chinese New Year).
In general exports have started increasing, and imports have been gradually increasing.
Posted by Bill McBride on 1/17/2017 11:43:00 AM