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The Port of Los Angeles. | Photo courtesy of Port of Los Angeles
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Port of Los Angeles officials announced Wednesday that the port closed out a soft first quarter, seeing a decline of approximately 32% compared to 2022, when the port experienced the best first quarter in its history.
Executive Director Gene Seroka said the port processed 623,234 twenty-foot equivalent units in March, a 28% increase in volume compared to February. March imports landed just under 320,000 TEUs, roughly 35% less than last year, exports finished just above 98,000 TEUs, a 12% year-on-year decline, and the port handled just under 205,000 empties, nearly a 42% decline compared to March 2022.
For the first three months of 2023, the port handled 1,837,094 TEUs.
“Economic conditions slowed global trade considerably in the first quarter; however, we are beginning to see some signs of improvement, including nine consecutive months of inflation declines,” Seroka said Wednesday. “While March cargo volume was lower than last year at this time, early data and monthly growth indicates a moderate increase in Q3.”
The port’s average first-quarter volume over the past five years has decreased more than 19%, which Seroka described as a “disappointing trend” that needs to be reversed. Port officials attributed the decline in cargo volume to widespread concern over labor negotiations, holidays, inflation and market uncertainties.
“Our numbers reflect a complex mix of both micro and macro economic undercurrents, still I continue to believe there are bright skies ahead as these factors ease in the coming months,” Seroka said.
Officials expect gradual growth for April with preliminary data indicating the port will process approximately 700,000 TEUs. In the following months, the port is expecting to see a traditional peak shipping season with a moderate uptick in the third quarter.
Meanwhile, Peter Voorhoeve, president of Volvo Trucks North America, outlined the work being done by his company and the port to bring zero-emission trucks to market. Volvo along with other original equipment manufacturers are collaborating with the port with the goal of transitioning the port’s drayage fleet to zero emissions by 2035.
“It’s happening. It’s no longer a concept,” Voorhoeve said at Wednesday’s news conference. “The entire industry has taken the idea of zero emission vehicles very seriously.”
Voorhoeve said stakeholders are seeing more electric-powered vehicles as well as fuel cell vehicles, though that technology is still being tested and improved on.
Volvo and the twin ports of Los Angeles and Long Beach share the same goal of reducing their carbon footprint, he added. Voorhoeve said a holistic approach was necessary to achieve that goal, with all stakeholders playing their part in transitioning to zero-emission trucks and related infrastructure.
