Continued consumer demand helped fuel a busy August at the Port of Los Angeles, which has also seen some 2.9 million containers move through the port in June, July and August combined.
The cargo updates were provided by port Executive Director Gene Seroka on Wednesday, Sept. 9, during his monthly virtual news briefing with reporters.
August volume was 6% above the port’s five-year average for the month and on par with last year, Seroka said.
“We’ve put together an exceptionally strong summer in Los Angeles,” Seroka said. “Resilient consumer demand, early holiday shipments and a broad mix of cargo have all contributed to that strength.”
September, he added, appears to promise another strong month.
Joining Seroka for the briefing was Brian Dodge, president and CEO of the Retail Industry Leaders Association, who said retailers remain optimistic about the holiday shopping season despite higher fuel costs, tariffs and other economic pressures.
“What stands out is consistency,” Dodge said, adding that it has been a strong year overall.
But it’s also required tenacity and adaptability on the supply side. Among the calculations required are those that can keep customer prices within range as the challenges to retailers and shippers keep coming.
The ongoing challenges ever since the COVID-19 pandemic, Dodge said, have resulted in retailers and suppliers developing the “muscles” to adapt through difficult and sometimes fast-changing circumstances.
Both Seroka and Dodge both called for more stability in trade policies going forward, with the port leader stressing the importance of trade partners continuing to talk while “lowering the temperature.”
Canada, for example, is the second largest trade partner for the U.S., Seroka said, and its products include lumber for building, and parts for cars — key items the U.S. relies on.
“We’ve had an incredibly resilient consumer over the course of the last several years through a variety of different disruptions,” Dodge said, “and the same seems to be the case right now as we head into the holiday shopping season.”
Most holiday merchandise is likely already in at this point, Dodge and Seroka said, with the latter adding that he also anticipates a strong end of the year.
A large share of holiday merchandise is already in the U.S. after retailers moved goods earlier this year, prompted by the tariff and Iran war uncertainties, Seroka said, but additional shipments are expected to continue as retailers replenish inventories to meet holiday demand.
The shipping peak for the RILA association members came in late spring and early summer, Dodge said, suggesting that a large volume of the U.S. holiday goods are now in place.
“But that’s not to say that everything is here yet,” he said. “Over the next several months, we want to make sure inventories will meet the demand. A good chunk of it is already here.”
Trans-Pacific freight rates to the West Coast favor East Coast routings, Seroka said, while the speed of moving cargo through Los Angeles and onto rail can make the overall economics attractive for importers serving markets across the country.
The National Retail Federation, meanwhile, said in a Wednesday news release that this year’s extended peak season is continuing, with a final bump expected this month that could push September over the line to be the busiest month of the year for import volume at the nation’s major container ports. The information was gathered from the Global Port Tracker report released this week by the National Retail Federation and Hackett Associates.
“We thought the peak season would be mostly behind us by now, but that’s not the case,” Jonathan Gold, NRF’s vice president for supply chain and customs policy, said in the news release. “Some of the shift from earlier in the summer to now is because of vessel delays due to bad weather in China and some rerouting away from the Panama Canal amid potential drought conditions there. But consumers keep buying despite tariffs, inflation and high fuel prices, and retailers keep bringing in merchandise to meet demand.”
Looking at cargo numbers, Seroka said, the outlook at the Port of L.A. remains strong.
“We’ve got good momentum heading into the final months of the year,” Seroka said. “September is shaping up to be another strong month, and Los Angeles is well positioned to respond as global trade patterns continue to evolve.”
The Port of Los Angeles processed 955,907 twenty-foot equivalent units in August, capping the busiest three consecutive months in port history. More than 2.9 million TEUs moved across port docks throughout June, July and August.
Loaded imports reached 500,302 TEUs in August, nearly even with last year and 7% above the five-year August average. Loaded exports totaled 115,561 TEUs, down 9% compared with last August. Empty containers totaled 340,044 TEUs, up 4% year over year.