Port of Los Angeles (POLA) and Port of Long Beach (POLB) marked the strongest respective starts in a calendar year, according to data recently issued by each port.
POLA reported that total January volume, at 924,245 TEU (Twenty-Foot Equivalent Units), increased 8% annually and also 13% above the port’s five-year average for January. And over the last seven months, the port has averaged more than 927,000 TEU per month, without a single ship backed up, noted POLA Executive Director Gene Seroka on a media call hosted by the port today.
“Our performance has been sustained by three key factors,” said Seroka. “First, strong consumer spending and a resilient U.S. economy. Second, importers front loading due to tariff concerns. That’s still happening. And third, we’ve seen incremental gains related to the Panama Canal and Red Sea diversions, as well as labor negotiations back east regarding East and Gulf Coast labor. Next week, the International Longshoremen’s Association full membership will vote on a new six- year agreement with the United States Maritime Alliance. All of us in the industry are hopeful that this will resolve the issue, because it’s critical to the US economy for every American port to be operating at top speed with dock workers who are compensated fairly.”
January POLA imports, at 483,831 TEU, increased 9.5% annually, and exports, at 113,271 TEU, fell 10.5% annually. Empty containers, at 327,143 TEU, headed up 14% compared to January 2024, which Seroka said normally indicates more cargo coming in the weeks and months ahead POLA.
Addressing imports, Seroka said that in addition to the aforementioned three factors driving January growth, many imports arrived early to avoid scheduled production slowdowns due to the Lunar New Year holiday. With exports down more than 10%, he explained that the port will be closely monitoring export data, especially in light of ongoing discussions regarding tariffs.
“It is crucial to American manufacturers and our agriculture communities that we take every possible measure to boost U.S. exports,” he said.
As for where February POLA volumes will end up, Seroka said there is likely to be a dip in cargo volume compared to the last few months, which is typically the case following the Lunar New Year, as this decrease typically happens as factories in Asia ramp up activity after their break.
“Our data indicates that volume will land in the 700,000 TEU range, a bit lower compared to last February, when Lunar New Year fell a few weeks later,” he said. “Looking ahead, there’s a case to be made for continued healthy volume. First, the National Retail Federation expects positive retail growth in the first half of 2025 and secondly, we’re not seeing many canceled sailings to POLA, which is a reliable early market indicator for the coming months. That said new economic data has raised some concerns that will be closely monitored as we move forward. January, retail sales nationwide dropped by 0.9% marking the biggest decline in nearly two years, and while winter storms across much of the country and the fires here in LA contributed to this decline, it could also indicate the start of consumer pullback. Additionally, the Consumer Price Index spiked by 0.5% last month, higher than most expected. While the Federal Reserve opted against reducing rates at its January meeting, the decision aligns with market speculation that the current holding pattern will continue at least through the Fed’s next meeting in mid-March. And of course, tariff concerns remain a significant issue on the global stage. In the short term, I’m hearing that front loading strategies will continue for some importers. However, trade may ease in the second half of the year, just given the volume of cargo that has already been shipped.”
POLB data: The Port of Long Beach reported that total January volume, at 952,733 TEU, rose 41.4% annually, topping the previous January record set in 2022 by 18.9%. Imports, at 471,649 TEU, were up 45% annually, and exports, at 98,655 TEU, increased 14%. Empty containers, at 382,340, headed up 45.9% annually.
POLB said that January represents the port’s eighth straight annual volume gain, coming on the heels of a record-breaking 2024, at 9,649,724 TEU.
“It’s encouraging to start off the year so strongly. As we head into 2025, I thank and congratulate all of our partners for their hard work,” said Port of Long Beach CEO Mario Cordero in a statement. “We will continue to focus on enhancing both our competitiveness and sustainability, no matter the uncertainties in the supply chain.”
In a recent interview with LM, Cordero explained that a solid economy and, resilient consumer demand continues to be strong.
“Holiday shopping sales were up around 4% or more, which was double of what some forecasts expected,” he said. “We still do have a very good economy overall. Two other components include the East and Gulf Coast ports’ labor negotiations, which saw a percentile of cargo that came to the West Coast, more specifically for Long Beach, as well as the front loading of imports given the anticipation of implementation of tariffs.”
