Ports of LA, Long Beach report continued cargo growth in March

The ports of Los Angeles and Long Beach saw cargo growth continue last month — despite some security and supply chain impacts as result of the Baltimore Bridge crash on March 26.

The Francis Scott Key Bridge, a crucial hub for cargo shipping at the Port of Baltimore on the East Coast, collapsed after a powerless cargo ship crashed into it.

Six construction workers, who were working on the bridge at the time of the crash, were killed — with several others reported missing.

Port of Los Angeles Executive Director Gene Seroka, in a Wednesday, April 17, media briefing, sent his condolences to those impacted and applauded the local, state and federal response to the disaster.

“We’re deeply concerned about the businesses, the workforce and the many people who are experiencing a severe economic impact because of this incident,” Seroka said. “Despite some disruptions, our nation’s supply chains and its leaders have once again demonstrated resiliency.”

Other nearby ports and stakeholders, Seroka added, have stepped up to minimize the economic impacts of the crash nationwide — evidenced by POLA’s continued cargo growth in March.

POLA processed 743,000 twenty-foot equivalent units (TEUs, the industry’s standard measurement for cargo units) last month — up 19% from March 2023. It was the port’s eighth-consecutive month of year-over-year growth.

“Like the previous two months,” Seroka said, “March showed year-over-year improvements across all categories.”

Imports at POLA totaled 380,000 TEUs last month, a 19% jump from the same time last year — and POLA moved about 145,000 outbound TEUs, a 47% increase from March 2023.

“Currently, we bring in 2.6 import boxes for every export. That’s a tremendous improvement over 2021, when we hit a trade imbalance of 6.2 imports to every single export,” Seroka said. “Ideally, our goal is to further boost American exports and get closer to a two to one ratio.”

POLA also sent 219,000 empty TEUs back across the Pacific in March, up 7% from a year ago.

“As we look ahead to April, it should be another busy month at the port, with cargo volume exceeding 700,000 TEUs, in what we normally consider our slack season,” Seroka said. “Moving into summer, and then the traditional peak shipping season, I expect healthy cargo flow to continue here in Los Angeles.”

There’s a number of reasons for that confidence, Seroka said — namely, POLA has increased its cargo handling efficiency and national economic indicators are positive.

“Overall, U.S. economic indicators remain positive,” Seroka said, “even with some uncertainty regarding interest rates and the latest inflation data.”

American employers added more than 300,000 new jobs last month, Seroka said, and recent U.S. Department of Commerce data indicated an increase in retail consumer spending.

“This is very good news because resilient consumer spending is key to our nation’s GDP growth,” Seroka said. “A strong job market and continued consumer spending will help drive cargo here in the second quarter.”

POLA’s next-door neighbor reported similar cargo growth last month.

The Port of Long Beach, meanwhile, moved 654,082 TEUs in March, according to a Monday, April 15, news release. That’s an 8.3% increase in cargo from March 2023.

Long Beach’s imports also increased by 8.4% compared to last year, with 302,521 TEUs processed last month.

But exports at POLB were down 21.3% last month, the news release said, with the port processing 105,099 TEUS in March.

The Long Beach port also moved 246,464 empty TEUs last month, a nearly 28.9% uptick from the year prior.

“Consumer demand remains strong and continues to drive cargo through this vital gateway for trans-Pacific trade,” POLB CEO Mario Cordero said in the news release. “We will continue to build the infrastructure that will allow us to grow our trade strategically and sustainably.”

Besides focusing on continuing to bolster cargo growth at the ports, Seroka said, Los Angeles in particular is working to ensure its systems are secure in the wake of the Baltimore Bridge incident.

POLA has long been a leader in cybersecurity. It was the first seaport to establish a Cyber Security Operations Center in 2014, according to the port’s website — and built upon that initiative with the 2021 creation of its Cyber Resilience Center.

Both resources serve as crucial tools for the port to detect potential cyberattacks — and, hopefully, put a stop to them before they’re successful.

“Last year, we stopped 750 million cyber intrusion attempts at the Port of Los Angeles,” Seroka said. “We’re leading the way here for a conversation across the nation and throughout the world on how to better protect our ports and infrastructure.”

President Joe Biden, after the Baltimore Bridge crash, issued an executive order aimed at further bolstering cybersecurity at U.S. ports.

That order created a federal rule that lays out a set of cybersecurity regulations that port operators must comply with across the country — and also gives the U.S. Coast Guard authority to respond to maritime cyberthreats.

“This executive order really gives the government the authority to set minimum cyber security practices at ports,”  Anne Neuberger, a White House deputy national security adviser, said during POLA’s Wednesday briefing. “(It will) also institute mandatory reporting of cyber incidents so we get a picture as well.”

Seroka, meanwhile, said that the executive order and increased regulations for cybersecurity at all U.S. Ports will bolster the efforts POLA has made to be a leader in that space.

“We continue to be one of the few ports here nationwide that has a robust protocol for cyber resilience,” Seroka said. “(There is) much more to do — but I think that conversation is now elevated in the supply chain industry, but also now through that Executive Order.”

The Associated Press contributed to this report.