The port of Los Angeles often termed as the ‘busiest port in the US’, has set a new western hemisphere record by closing the fiscal year with a massive record of 10.9 million twenty-foot equivalent units (TEUs) in container throughput for the year. This comes at a time when the global economy tries to overcome setbacks due to the ongoing pandemic, as vaccination efforts ramp up around the world.
In the last year itself, the port witnessed its two best performing quarters and broke eight records of monthly container volume throughput. Besides, there were four months having the highest records in terms of container handling in the 114-year history of the port.
During, one such month also termed as the ‘busiest June’ the port was able to move 876,430 TEUs of container volume making the port of Los Angeles the first port in the western hemisphere to cross the 10 million TEU milestone.
The massive surge in container volume at the port which further pushed the system to achieve the milestone is being attributed to the large-scale boom in consumer spending and multiplied demand. The port also expects additional passage of 5.1 million TEUs in the latter half of the year with continuing trends of booming demand.
Gene Seroka, Executive Director, Port of Los Angeles emphasizes the increased productivity of ports even when the entire logistics and supply chain remains under distress due to the ill effects of the pandemic. He claims an increase of 50% in productivity in the past year.
He said, “Key economic indicators all suggest that U.S. consumer spending will remain strong through the remainder of 2021.”
Lastly, even though the record sets Los Angeles, port ahead of others there are worrying signals that need to be addressed. The port saw the lowest export volume in June since 2005, under 100,000 TEUs as a ripple effect of imbalance in supply and demand and disruptions at the Chinese port of Yantian, pulling down the productive performances by the port.
The opinions expressed herein are the author’s and not necessarily those of News2Sea.
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