[Freight Weekly] Ports of LA and Long Beach Are Back (Baby)

💯_{Ports of LA and Long Beach seeing early peak season}

The twin Ports of Los Angeles and Long Beach reporting early peak seasons as cargo volumes rebound compared to this time last year. Is this a trend that we will see persist in the coming months? Here is what you need to know:

• The Port of LA reported that it processed 781,434 TEUs in February 2024, which is a 60 percent increase from this time last year. This also included a 64 percent climb in import container volumes to 408,764 TEUs.

• The Port of Long Beach reported a 24.1 percent year-over-year climb in container volumes, 674,723 TEUs, and 29.4 percent in imports, 329,850.

• Numbers like these reflect a return to the West Coast’s supremacy in cargo volume and its vitality to the United States’ overall supply chains.

• BNSF and other rail operators are working to clear the heavy rail container build-up at the Yusen Terminals at the Port of LA.

• In particular, the Port of LA is experiencing levels of consistency that have not been seen since pre-pandemic times. Given labor issues at the port, too, terminal operators and carriers are seeing cargo throughput.

Bottom line: The early peak seasons at the traditionally two busiest ports in the United States signal a potential return to normalcy after the pandemic and the ongoing labor disputes between terminal operators and port longshoremen.

CONTEXT: Port of Los Angeles worker dies after getting trapped under forklift - The incident occurred on Monday at Berth 270, says the LA Fire Department.

Quote of the Day: Where is the nearshoring Mexico touts?

“Mexico is in a prime spot for multinationals looking to move operations closer to their main markets. But the expected wave of nearshoring firms is yet to materialise due to rising costs, creaking infrastructure and political uncertainty, and so is the promised economic boom.”

- Aimee Donnellan, Reuters BreakingViews Columnist, London; March 20 column

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📰  WHAT ELSE IS GOING ON IN FREIGHT

😒Hapag-Lloyd CEO predicts “early peak season” for shipping: speaking of early peak season, Hapag-Lloyd CEO Habben Jansen believes that ocean shippers should expect a “soft” month in March but expect a boom. This prediction comes as Los Angeles and Long Beach ports report “early peak season” numbers.

🤑Norfolk Southern poaches new chief operating officer: John Orr was poached by Norfolk Southern from rival Tier I rail operator CPKC amid a c-suite shakeup at the embattled carrier. Norfolk put up $25 mil for Orr to break his non-compete agreement and assume the position of the firm’s operations chief.

😵Israeli port on Red Sea could see staff layoffs due to Houthi attacks: The Port of Eilat, Israel’s only port on the Red Sea, could see staff layoffs due to the Houthi attacks on ocean shipping through the corridor and the Gulf of Aden.

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