US West Coast Long Beach Port Cargo Volume Up 43% Last Month

On the 10th, a day before the Lunar New Year holiday, export and import containers are stacked at Pyeongtaek Port as seen from a Seoul Metropolitan Police Agency helicopter. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Dongwoo Lee] The record-breaking increase in container volume on Asia-to-US regular shipping routes (North America export routes) is exacerbating difficulties for domestic small and medium export companies. In particular, as congestion at North American West Coast ports continues, a shortage of ship space and soaring freight rates are showing signs of prolonged duration.

According to the California daily newspaper Daily Breeze on the 20th, last month the container handling volume at the Port of Long Beach, a major North American West Coast port, reached 746,188 TEU (20-foot equivalent units), a 43% increase compared to the same period last year. This is the first time Long Beach Port has handled over 700,000 TEU in a single month of April.

During the same period, the Port of Los Angeles (LA) also recorded 946,966 TEU, a 37% surge compared to the previous year, marking nine consecutive months of growth. The total cargo volume at LA Port increased by 42% over the first four months of this year compared to last year.

The industry analyzes that this phenomenon is due to a surge in container volume caused by increased online spending from restricted lifestyles amid the prolonged COVID-19 pandemic combined with economic recovery. Jin Seroka, the LA Port Authority Director, said, “The surge in cargo reflects strong consumer spending driven by economic recovery,” adding, “This is unprecedented in LA.”

The congestion phenomenon at the North American West Coast caused by the surge in container volume is also becoming prolonged. As of this month, ships arriving at the North American West Coast must wait at least about a week near the coast for unloading.

Container ship freight rates are also soaring daily due to the increase in cargo volume and prolonged congestion. The Shanghai Containerized Freight Index (SCFI) rose by 248.19 points to 3,343.34 at the end of last week, setting a new record high for the second time in two weeks, and the price of a 40-foot container box remains above $6,000 per unit.

The government is reviewing measures such as increasing temporary vessels, prioritizing cargo loading for small and medium shippers, and expanding long-term transport contracts to resolve the logistics crisis faced by domestic export companies, but it is difficult to resolve the entire volume.

Accordingly, HMM is supporting domestic companies’ exports by deploying temporary multipurpose vessels transporting petrochemicals, power generation equipment, and more.

A shipping industry official said, “Along with the increase in cargo volume earlier this year, COVID-19 cases among dock workers on the North American West Coast also increased,” adding, “Although congestion peaked in February and has recently shown signs of improvement, difficulties for domestic export companies due to rising freight rates are expected to continue for the time being.”

This content was produced with the assistance of AI translation services.