LA Container Traffic Slide Highlights Cargo Blight
13 Março 2009 - 1:51PM
Dow Jones News
Container traffic through the Port of Los Angeles fell by a
third last month, signaling continuing weakness in U.S. consumer
sentiment and creating a ripple through the country's transport
network.
L.A. and Long Beach account for 40% of U.S. inbound container
movements and are suffering the largest percentage declines in
traffic for 25 years.
Container traffic through L.A. fell 32.6% in February, according
to data released this week, with imports down 35.3% and outbound
shipments off by 27.6%.
The decline is accelerating following a 10% slide in January and
the 6.5% fall for 2008.
The data provide a gloomy outlook for U.S. rail and truck
shippers transferring electronic equipment and other durable goods
to retail stores and manufacturers, continuing the slide in traffic
that became evident last November.
"We are anticipating our volumes through the first quarter, and
maybe even the first half of the year, will continue to be in
decline," L.A. port spokesman Arley Baker said.
Baker said the declines were the worst since the early 1980s. He
said some terminal operators have warned there could be "a few
months" of double-digit slides.
Container traffic through Long Beach dropped 23.4% in January
after falling 11.3% in 2008. Art Wong, a port spokesman, said the
2008 percentage slide was the worst in at least two decades.
"We expect weakness through March and probably into the spring,"
Wong said. "We're hearing there's a chance it may be able to level
off this summer, but that's a big wait-and-see."
Container traffic has been on the wane amid the slump in U.S.
and global commerce.
Earlier this week, China reported that exports fell 25.7% in
February, compared to the year-ago period, marking the largest
slide in more than a decade.
The trend has been evident in the higher-margin air cargo
sector. Hong Kong Air Cargo Terminals said this week that its
volume was down 22% last month. Deutsche Lufthansa AG (DLAKY), one
of the largest cargo airlines, is parking aircraft as demand
declines.
U.S. domestic freight carriers, including railroads and trucking
companies, have continued to reporting large declines in business,
though there have been mixed signals over the March trend.
"It feels like we may have reached a floor," Union Pacific Corp.
(UNP) Chief Financial Officer Rob Knight said this week during a
transportation conference, although he added that his railroad's
year-to-date freight volumes were down 22% through March 7.
West Coast ports are particularly sensitive to Asian imports and
exports. Major U.S. exports through the ports include raw materials
such as scrap metal and paper for recycling, while imports include
all manner of consumer goods.
"What comes through here (in terms of imports) goes right onto
the shelves of major retailers" nationwide, Baker said. "What's
happening (in terms of cargo) is really a direct reflection of the
economy."
-By Bob Sechler; Dow Jones Newswires; 512-394-0285;
bob.sechler@dowjones.com