January import statistics from the Port of Los Angeles indicate a significant improvement from the inventory surplus experienced in 2022 and early 2023. This January marked the port's second-best performance on record, trailing only behind January 2022, which saw heightened spending due to the pandemic.
During January, the port handled a total of 855,652 TEUs (twenty-foot equivalent units), an 18% increase from the previous year. However, compared to pre-pandemic levels in January 2019, the growth was marginal, with just a 0.4% uptick.
Loaded imports at the Port of Los Angeles reached an all-time high for January, with 441,763 TEUs, marking a 19% increase year over year. This surpassed the previous record set in January 2021.
Gene Seroka, the port's executive director, attributed this import growth to two main factors: accelerated inventory restocking ahead of the Lunar New Year and increased consumer spending. Despite a slight decline in retail sales reported by the U.S. Census Bureau, excluding automotive and gas station sales, consumer goods sales showed resilience.
The Logistics Managers’ Index for February indicated a rebound in inventory levels following months of decline. Import volumes at the Port of Los Angeles are expected to further increase in February, boosted by the Lunar New Year festivities, with March likely to reflect continued growth from the holiday season.
Despite ongoing effects of the Lunar New Year, the Inbound Ocean TEUs Volume Index shows year-over-year growth in TEUs departing from various ports worldwide, raising questions about post-holiday market dynamics.
Additionally, the Panama Canal's situation has provided an advantage for the Port of Los Angeles, with more scheduled slots in January. However, this did not translate into increased transits. Nonetheless, these circumstances are anticipated to benefit the port throughout Panama's dry season.
Notably, loaded exports experienced significant growth, reaching 126,554 TEUs, the highest since November 2020, and marking a 23% increase from the previous year. This growth in outbound containers was supported by strong international intermodal container volumes, particularly in December and January.
Looking ahead, the growth in inbound international intermodal container volumes during February is expected to further bolster export volumes in the upcoming months. Moreover, potential labor negotiations between the International Longshoremen’s Association union and East Coast ports could provide a favorable environment for the Port of Los Angeles, a pivotal player in the U.S. freight economy.
Source: www.freightwaves.com
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