Cargo volume at the Port of Los Angeles grew by 6 percent in 2014, compared with the previous year, harbor officials said Friday, but the uptick in ship traffic and an ongoing labor dispute caused delays in cargo delivery.
Port executive director Gene Seroka said the figures are an “encouraging indication that the national economy continues to improve.”
However, “the second half of the year ushered in a mix of unprecedented challenges due to transformational changes in the shipping line business,” Seroka said.
“We are working hard to help our customers and supply chain partners overcome those challenges and urge them to work together with us to find solutions,” Seroka said.
Activity at the Los Angeles port has been impacted by a labor dispute between terminal operators and dock workers — who are negotiating the renewal of a contract that expired in July — and by congestion brought on by more and bigger ships.
These issues have created a “perfect storm” that is slowing down the delivery of cargo and prompting some customers to divert their goods to other West Coast ports, Port of Los Angeles spokesman Philip Sanfield said.
Seroka urged the International Longshore and Warehouse Union and Pacific Maritime Association “to work with urgency and good faith toward a new labor contract.”
On a typical day, as many as 15 ships wait to get into the port, when the previous year there were no ships waiting, Sanfield said, and space at shipping yards are now 90 to 95 percent full, compared with the 80 percent occupancy that is more ideal for efficient cargo operations.
Last year’s port volumes were 8,340,065 Twenty-Foot-Equivalent Units, or TEUs, making it the port’s third busiest year in history. The two busiest years were 2007, when about 8.4 million TEUs were moved, and 2006 with 8.5 million TEUs.
Activity grew by 1 percent last month, compared with the same period in 2013, from 653,358 to 658,567 TEUs.
Imports were up 4.4 percent in December, going from 322,500 to 336,674 TEUs. Exports fell 12 percent, from 172,261 to 152,112 TEUs, which port officials attributed to weaker overseas demand and a stronger U.S. dollar that makes goods more expensive.
Imports and exports of loaded containers was down 1.2 percent, from 494,761 to 488,786 TEUs. The number of empties were up 7 percent.
More port volume statistics are at http://www.portoflosangeles.org/maritime/stats.asp .