LA, Long Beach ports report record July cargo volumes. What does the future hold?

The twin ports of Long Beach and Los Angeles both moved record volumes of cargo in July thanks to the back-to-school season, early holiday stock and the threat of tariff increases, the agencies announced this week.

Last month, workers at the Port of Long Beach moved 882,376 20-foot-equivalent units (the standard measure of shipping containers), making the busiest July and third most active month in its 113-year history, officials said Wednesday. The figure marked a sizable jump — 12.4% — from the previous July record set in 2022.

“We’re in a strong position heading into the peak shipping season as consumers purchase back-to-school supplies and shippers move goods ahead of potential tariff increases,” CEO Mario Cordero said in a statement, adding that the port has plenty of capacity to handle the influx.

During the first seven months of 2024, the port moved over 5.17 million TEUs, up 20% from the same period last year.

Similarly, at the Port of Los Angeles, workers moved a record 939,600 TEUs, making it the ninth busiest month in the port’s 116-year history, according to cargo data. The volume marked a significant 37% increase from July last year but only a small rise from the previous July record of 935,423 TEUs set in 2022.

“We’ve seen an influx of year-end holiday goods coming across our docks a bit earlier than usual to avoid any risk of delay later in the year,” Port of Los Angeles Executive Director Gene Seroka said at a media briefing. “These goods – think toys, electronics and clothing – are arriving at the same time as more typical back-to-school, fall fashion and Halloween merchandise. An early peak season has helped to boost volumes here in Los Angeles.”

Through July, the LA port has moved over 5.67 million TEUs, an 18% increase over the same period last year.

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Together, the San Pedro Bay ports have been the busiest U.S. containerized goods gateway for decades. But Los Angeles has long held onto the top spot for U.S. container port volume. In fact, the LA port assumed the title of the number one container port in the Western Hemisphere in 2000.

But with key — and high-cost — infrastructure investments, Mayor Rex Richardson said he thinks the Long Beach port is poised to surpass LA in the coming years.

“In the last few years, you’ve seen the proportion in the San Pedro Bay complex become more and more balanced,” Richardson said in an interview last month.

Since January 2022, the Port of Long Beach has moved more cargo than its LA counterpart six times through July of this year: August 2022, September 2022, September 2023, October 2023, February 2023 and June of this year. While that may not seem like much, that is four times more than 2019 through 2021, data shows.

(And it should be noted that in March and May 2020, when Long Beach did move more cargo than LA, that could have been due to any number of COVID-19-related issues that made goods movement unpredictable amid the pandemic.)

At the same time, the percent difference between the amount of cargo each port moves annually has been steadily shrinking over the last five years, data shows. In 2019, LA moved 22.35% more cargo than Long Beach. But last year, that figure decreased to just 7.68%.

Richardson attributes major investments into port infrastructure — namely the completed Gerald Desmond Bridge replacement and the ongoing Pier B On-Dock Rail Facility — as the leading factor for the Port of Long Beach’s market share growth.

The new Long Beach International Gateway Bridge provides ships with 50 more feet of vertical clearance, allowing larger vessels to utilize the inner-harbor terminals, which means expanded capacity, Richardson said.

“We’re poised for growth on this side of the San Pedro Bay complex that allows the balance to be a little bit more equitable and we do foresee a trajectory of growth,” Richardson said.

One concern about growth at the port is environmental impacts due to emissions from ships, trucks, trains and other equipment. Richardson and port CEO Cordero said they remain committed to the growth being green.

Last month, the port celebrated the groundbreaking of its $1.567 billion, 171-acre Pier B rail facility, which is expected to significantly increase rail capacity while decreasing annual truck trips by 4.6 million. A single train can replace up to 750 truck trips, which port officials projected to equate to an 85% decrease in diesel particulate matter, an 80% decrease in sulfur oxide emissions, a 64% decrease in greenhouse gas emissions and a 26% decrease in nitrogen oxide emissions.

The city is also pushing for increased numbers of electric semi-trucks by investing in charging stations within the port complex as well as transitioning on-dock equipment to zero-emission.

“These strategic investments … really position us to be one of the fastest-growing ports and to continue our leadership in America,” Richardson said, noting that the Port Authority of New York and New Jersey also has grown significantly since the start of the pandemic.

Cordero said that confidence in the Long Beach port is growing but declined to comment on the possibility of the facility becoming the top port in the nation. Instead, he pushed for continued collaboration with the Port of LA to ensure the San Pedro Bay port complex remains the “most significant gateway for the country.”

“Maximizing collaboration with the two ports is paramount, which will result in maximizing our cargo volume,” Cordero said in an interview last month.

All infrastructure projects are aimed at increasing efficiency that allows for greater volume, Cordero said, adding that he still would like to see the port authority move toward 24/7 operations.

“From a business perspective, time is money,” Cordero said. “We need to have that Amazon state of mind. It’s all about speed to market and I strongly believe Long Beach is adding to that equation.”