LA Long Beach Ports Face Throughput Drop Amid Pandemic Trade Strains

Port throughput at Los Angeles and Long Beach continued to decline in March due to the ongoing pandemic, highlighting supply chain vulnerabilities. The Port of Los Angeles experienced a significant drop, while Long Beach showed more resilience despite the decrease. Weak retail demand further exacerbated the pressure on the ports. Experts predict a shift in consumption patterns, presenting both challenges and opportunities in the future. The ports are actively responding to ensure safety and business continuity.

The ports of Los Angeles (POLA) and Long Beach (POLB) stand as America's primary gateways to Pacific trade, serving as vital barometers for global economic health. Recent data reveals these twin ports experienced significant declines in March cargo volumes, exposing the fragility of global supply chains amid the ongoing COVID-19 pandemic and trade tensions.

Part I: The Numbers Tell the Story

Los Angeles Port: Record Lows

POLA, the nation's busiest container port, recorded a staggering 30.9% year-over-year decline in March, handling just 449,568 TEUs (twenty-foot equivalent units). This represents the lowest monthly volume since February 2009.

Imports: 220,255 TEUs (down 25.9%)
Exports: 121,146 TEUs (down 23.8%)
Empty containers: 108,168 TEUs (down 44.5%)

Long Beach Port: Relative Resilience

POLB fared slightly better with a 6.4% decline to 517,663 TEUs in March. First-quarter exports actually grew 7.2%, suggesting some sectors remain robust despite broader challenges.

Part II: Root Causes

Pandemic Disruptions

COVID-19 created a perfect storm of factory shutdowns, transport bottlenecks, and depressed consumer demand. Long Beach Executive Director Mario Cordero noted "19 vessels canceled scheduled calls to POLB in Q1 due to overseas pandemic concerns."

Trade War Fallout

Ongoing U.S.-China trade tensions compounded the crisis. POLA Executive Director Gene Seroka described "a dual shock to supply chains from both trade wars and pandemic disruptions."

Retail Collapse

With stores closed and unemployment soaring, the National Retail Federation reported imports remain below expectations despite China's manufacturing restart.

Part III: Industry Perspectives

Panjiva research director Chris Rogers observed: "The key question isn't whether volumes fell, but by how much. March data fully reflects pandemic impacts, with consumer spending concentrating on essentials."

KeyBanc analyst Todd Fowler noted some improvement as Chinese production resumes, but warned: "With businesses shuttered and orders shrinking, volumes will likely remain below 2019 levels."

Part IV: Port Responses

Both ports maintain close coordination with labor groups and operators to ensure worker safety and cargo movement. Their joint efforts highlight the critical need for supply chain resilience during global crises.

Conclusion: Challenges Ahead

While the ports face unprecedented challenges, their experience offers crucial lessons about supply chain vulnerability, the importance of diversification, and the need for international cooperation in turbulent times. The road to recovery remains uncertain, but these gateways will continue serving as vital indicators of global trade health.