Posted on: August 21, 2024 / Last updated: September 4, 2024
LA and LB Ports Face Import Volumes Comparable to the Pandemic! East Coast Strikes Also Impacting
The ports of Los Angeles and Long Beach are facing their highest import volumes since the pandemic.
With the added impact of East Coast strikes, cargo concentration at West Coast ports is increasing, raising concerns about future effects on the supply chain.
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Los Angeles and Long Beach Ports Record the Third Highest Import Volumes
The ports of Los Angeles and Long Beach achieved the third-highest import volumes in July.
This is second only to the record set during the pandemic and is contributing to congestion at West Coast ports once again.
Importers are taking early action to avoid disruptions.
East Coast Strikes Accelerate Cargo Concentration on the West Coast
The East Coast labor contract expires on September 30, and a strike could begin on October 1.
To avoid this, a significant amount of cargo is being redirected to the West Coast.
Current Situation at West Coast Ports and Corporate Responses
The CEO of the West Coast ports stated that “there is still capacity at the terminals, and efficient import procedures are possible.”
However, if the East Coast strike prolongs, the burden on West Coast ports could further increase.
Additionally, concerns are rising about potential trade friction under a possible reelection of former President Trump, prompting companies to expedite their imports.
Consumer Trends and Economic Impact
Meanwhile, American consumers are struggling with recovery.
Continued rate hikes by the Federal Reserve are increasing the burden of credit card and mortgage loans, leading to a decline in consumer spending.
While companies are moving to mitigate tariff risks, the overall economy may still be affected unless consumer purchasing power recovers.