Port of Long Beach recorded another month of shipment decline in the first month of 2023, driven by softened consumer spending, increased prices driven by inflation, and a shift in trade routes.
The major North American gateway said it moved 573,772 twenty-foot equivalent units (TEUs) in January, down 28.4% from January 2022, which was the Port's busiest January on record.
It said imports decreased 32.3% to 263,394 TEUs, and exports declined 14.2% to 105,623 TEUs.
Empty containers moving through the Port were also down 29% to 204,755 TEUs.
"We are taking aggressive steps to meet a new set of challenges for the new year," said Mario Cordero, executive director of Port of Long Beach.
"I remain optimistic that we will recapture market share and develop projects that will enhance our long-term growth, sustainable operations and the reliable movement of goods through the Port of Long Beach," he added.
Sharon L. Weissman, president of the Long Beach Harbor Commission, also signalled optimism about the cargo prospects at the port despite current challenges.
"We're confident we will grow cargo volume by working with our industry stakeholders," Weissman said. "We are focused on investing in infrastructure projects that will improve air quality and make us more competitive."
Economists say inflation is slowing for purchased goods and may offset rising prices for services, largely depending on how the Federal Reserve adjusts interest rates this year.
