Port of Long Beach to expand capacity
Executive Director Mario Cordero states that the Port of Long Beach is implementing a new development strategy. It consists of joining forces with the Los Angeles terminal. This will allow the partners to become more competitive.
Previously, the US West Coast ports had been experiencing a decline in traffic. This was due to the popularity of routes via the East Coast and the Persian Gulf. As a result, the position of the terminals has been shaken, but they are now ready to fight for leadership with renewed vigour.
The US West Coast saw a decline in container traffic in 2023:
- the port of Los Angeles’ performance fell 11.2%;
- the port of Long Beach saw a 12.2% drop in cargo.
However, the dynamics have gradually improved since the second half of the year. As a result, traffic in November was up 19% in Los Angeles and 24% in Long Beach. The critical factor in container traffic growth was adopting the labour contract agreement. This increased imports from Asian countries, particularly noticeable during the peak season. Another positive factor for US ports was the problems in the Suez and Panama canals.
Predictions of increased activity on the West Coast
Gross Transportation Consulting predicts an increase in cargo traffic in US and Canadian ports in the near future. More and more vessels are favouring a route through West Coast ports, increasing the demand for services. As a result, container shipping costs have risen.
According to Freightos, shipping rates from Asia to this region of the US have increased by 74%. This dynamic should continue, and the price of transporting a 40-foot container will exceed USD 5,000. At the same time, analysts fear congestion in several popular American ports. In addition, there is likely to be a shortage of empty containers.
To avoid problems, the Long Beach terminal is already preparing for an increase in the number of ships. The port has received a USD 643 million grant to build a rail link to Pier B. This will double the size of the hub and more than triple its capacity. This will allow the port to receive and handle much more cargo and avoid downtime.
Port officials are also developing joint initiatives with their counterparts in Los Angeles. So far, the parties have not specified the areas where they intend to cooperate. What is known is that the ports want to develop in parallel while maintaining healthy competition.
Los Angeles and Long Beach have already worked on many joint projects, including:
- The Alameda Corridor. This provides a route for moving goods between the ports and the hinterland.
- The Green Air Plan. This is an environmental initiative to reduce carbon emissions.
In 2023, the ports pledged USD 300,000 each to upgrade two vessels. They planned to convert the ship to run on liquefied natural gas.
