Global supply chains, once operating like precision machinery, suddenly became sluggish and even stagnant under the impact of the pandemic. Port congestion and vessel delays—scenarios that were once theoretical—became daily realities. The Port of Long Beach, a gateway on the U.S. West Coast, was no exception. As pandemic shadows gradually recede, has Long Beach recovered? How will digital transformation reshape its future?
Long Beach During the Pandemic: Congestion and Challenges
In early 2022, Long Beach faced unprecedented congestion, with up to 109 vessels queued for unloading. This wasn't just a numerical shock—it tested the port's operational capacity and supply chain efficiency. Imagine 109 massive ships anchored offshore, each carrying thousands of containers that could impact business production and consumer demand. The delays translated to cost increases, reputational damage, and even supply chain breakdowns.
The congestion stemmed from multiple factors. First, pandemic-induced shifts in global production and consumption patterns led to surging imports of consumer goods while exports from some regions declined. This imbalance exacerbated port bottlenecks.
Second, the port's operational capacity faced challenges. Worker infections and quarantines caused labor shortages; equipment maintenance suffered, reducing efficiency; internal coordination encountered new difficulties. These factors compounded congestion.
Finally, challenges permeated the entire supply chain. Land transport restrictions delayed container movement; warehouse capacity shortages caused cargo pileups; poor information flow hindered coordination. These interconnected issues drastically reduced overall efficiency.
Recovery Signs: Throughput Analysis and Stabilization
Fortunately, as pandemic pressures eased and U.S. supply chains gradually recovered, Long Beach's congestion improved significantly. By late 2022, the vessel backlog had disappeared. In 2023, throughput and cargo flow showed signs of stabilization.
However, stabilization doesn't mean smooth sailing. Port of Long Beach Executive Director Mario Cordero noted that early 2023 saw a 30% year-over-year throughput decline—worse than the 22% drop in total U.S. imports. As the San Pedro Bay port complex (including Los Angeles) serves as America's primary Pacific trade gateway, it acutely feels import fluctuations.
April brought improvement, with throughput reaching its highest level since October 2022—though still 20% below 2022 levels. Preliminary May estimates suggest approximately 720,000 TEUs (twenty-foot equivalent units), down 15% year-over-year.
"While we can't compare to 2021-2022 pandemic peaks, this positive trend brings optimism for gradual growth through 2023," Cordero said. "When comparing to 2019—a more typical year—2023 looks remarkably similar. We're stabilizing at pre-pandemic levels after double-digit declines from pandemic surges."
Cordero projects monthly averages around 700,000 TEUs for 2023, indicating no traditional peak season. "We expect a plateau," he said. "Best-case year-end projections reach 9.3 million TEUs—a 2% increase over 2022 and 22% above 2019's 7.6 million. We're returning to traditional cargo flows."
Digital Transformation: Building a Supply Chain Information Highway
Facing pandemic challenges, Long Beach recognized traditional operations couldn't meet new demands. Digital transformation became imperative.
Deputy Executive Director and COO Dr. Noel Hacegaba explained how the port responded to crisis conditions: "We expanded terminal hours, established America's first 24/7 supply chain framework, and converted 100+ acres into temporary container yards to keep medical supplies and the economy moving."
These measures revealed deeper issues, particularly cargo data visibility gaps. The port's solution—the Supply Chain Information Highway—aims to create coast-to-coast connectivity through a unified digital platform linking supply chain nodes.
Currently in Phase 2, the project is expanding to all Long Beach containers while collaborating with other U.S. ports (Oakland, Northwest Seaport Alliance, Utah Inland Port Authority, South Carolina Ports Authority, Miami, and New York/New Jersey). Each port's data environment serves as a unique gateway to the highway, providing shippers secure, timely container status data.
Benefits include:
- Enhanced visibility: Shippers track real-time cargo location/status
- Improved efficiency: Better coordination reduces congestion
- Cost reduction: Optimized logistics lower transport/warehousing expenses
- Increased security: Tracking minimizes losses
Long Beach also explores accelerating e-commerce supply chains through pilot programs, recognizing online shopping's pandemic-fueled growth.
Infrastructure Development: Boosting Rail Capacity
Beyond digital initiatives, infrastructure remains crucial. Hacegaba highlighted major rail projects: "The G-J Pier dual-track rail opened last year, and Ocean Boulevard's fourth track will soon follow—shifting more cargo to rail. We're building for the future while delivering world-class service."
Rail offers volume, cost, and environmental advantages, strengthening inland connections and competitiveness.
Peak Season Outlook: September Surge Expected
Cordero anticipates normal seasonal patterns resuming, with September likely marking significant growth. "We're transitioning from double-digit declines toward normalized volumes through San Pedro Bay ports," he said.
Macroeconomic Factors: Inflation and Consumer Trends
Economic indicators present mixed signals. While May's 4.9% CPI shows improvement from 2022's 9% peak, consumer spending shifts toward services (travel, dining) may impact retail imports. However, discount retailers and outdoor-related goods show strength, with Walmart's online sales growing 27%.
"The situation is complex," Cordero noted. "Consumer selectivity aligns with our earlier predictions. Challenges exist, but contextualized, we're optimistic 2023 won't be as bleak as some suggest."
Inventory Management: Inland Empire Watch
Hacegaba monitors inventory drawdowns, particularly in Southern California's Inland Empire—a logistics hub with 2+ billion square feet of warehouse space within 75 miles of the ports. "Capacity remains full, but often with off-season goods. As supply chains stabilize, this will be a key metric," he said.
Conclusion
Long Beach continues emerging from pandemic disruptions, with digital transformation, infrastructure investment, and economic adaptation shaping its path forward. The port's journey reflects broader global supply chain evolution—where resilience, efficiency, and collaboration define success in an increasingly complex trade landscape.