Port of Long Beach’s Cordero says port on course for 9.6 million TEUs in 2024

The Port of Long Beach is on course to reach 9.6 million cargo containers by the end of 2024 and achieved its busiest November, when dockworkers and terminal operators moved 884,154 twenty-foot equivalent units an increase of 20.9% from the same month last year. This surpassed the previous record set in November 2020 by 12.8%, according to Mario Cordero, Executive Director, Port of Long Beach.

In his December 17th media briefing, Cordero said that November imports grew 21.8% to 432,823 TEUs and exports rose 9.5% to 119,083 TEUs. Empty containers moved through the Port increased 24.5% to 332,250 TEUs. November also marked the Port’s sixth consecutive monthly year-over-year cargo increase.

Cordero explained that: ““Imports are being driven by strong consumer demand while retailers continue to move cargo here out of concern for labor negotiations at ports on the East and Gulf coasts. We will continue to handle this influx of cargo smoothly and with zero disruptions through the end of 2024.”

Tariff Concerns

However, Cordero expressed concern about the impact of tariffs on China that the incoming Trump Administration proposes. He warned new tariffs could adversely impact U.S. imports and exports:

“Over time, tariffs on China imports likely will lead to increased tariffs on U.S. exports to China. The Port … could see both the reduction in import and export and cargo volume, and .. a reduction in in the beneficiary economic impacts of trade, including jobs, business opportunities.

Back in 2018, tariffs initiated during the first Trump Administration resulted in a 20% decrease in imports from China and a 45% decrease in exports to China due to retaliatory actions. And we remain in a tariff application environment as the Biden Administration did not pull back on a tariff policy implemented by the first Trump Administration.”

Cordero warned that uncertainty will undermine trade: “The one certain effect of another run of tariffs that we can expect is uncertainty … the main problem for shippers and for the U.S, ports. U.S. ports know that trade moving through our gateway powers jobs locally, statewide, and across the United States. We are a big part of the economy, as is our neighbor, the Port of Los Angeles … So, in addition to what businesses are facing, we know that uncertainty will also take its toll on the positive economic impact of our gateway and those around the country. We will continue to focus on enhancing both our competitiveness and sustainability.”

On-Dock Rail

Cordero noted that investments in on-dock rail at the Port including the Port’s Pier B on-dock rail project: “We had a four-point plan of action in terms of investment in … rail projects. We have completed three of the four, and what remains … is Pier B. All this … to further that connectivity that needs to be had in terms of San Joaquin Valley… Central Valley (agricultural exporters) to …use the San Pedro Bay complex the nation's most significant and the largest container gateway to really further the ag export connectivity here … for the State of California ...”

Cordero also noted that on-dock rail investments will also help speed imports to Midwestern destinations and that he hopes that as much as 50% of imports will one day be moved by rail from the Port: “First of all, I needed to say we have the support across the nation with regard to this rail project. The Biden Administration, the Department of Transportation we were beneficiaries of some significant funding because it is recognized in both at the federal level and at the state level … that this rail project is very important for the following reasons. One, we need to decongest our corridors with regard to what we know today as the trucking corridors, which are could use some relief. Second, it poses a better environmental option. And when you look in terms of what is coming into the future, the Class One railroads are already demonstrating … zero emission locomotives. So, I think the environmental advantages … are going to be clearly advantages in the future… So, right now we're about 26% … in terms of on dock container movement. The completion of the on-dock Pier B rail facility we estimate … could elevate that (to) 38%. But I do believe that as shippers … have more comfort in terms of the fluidity of rail movement we'll be real competitive (and) in in later years, we (can) accomplish a 50% percentile in rail movement .. that is our vision and that's been … the reason that we're investing $1.5 billion into this project.”

Improvements in 2024

Chief Operating Officer Dr Noel Hacegaba discussed several 2024 improvements at the Port of Long Beach:

Digital Information: “Another way we are adding value in helping customers and partners optimize their supply chains is by enhancing data transparency and visibility through our digital initiative called the Supply Chain Information Highway. The Supply Chain Information Highway was created to help more cargo move more cargo more efficiently through our Port and across the supply chain by liberating data and putting it in the hands of customers and supply chain partners, we are excited to begin rolling out new features and functionalities. In 2025, for example, we plan to roll out a universal truck and appointment function that will allow … providers to see available appointments across all six of the Port's container terminals. This system will ultimately connect with the Port of Los Angeles's appointment system and provide users with the ability to make an appointment at any of the 12 container terminals in the San Pedro Bay. This is just one enhancement that we plan for 2025, and this builds on the Port operations dashboard that we launched earlier this year. And in the coming months, we will also be adding rail and export data monitoring, further enhancing visibility for our stakeholders. Now as we roll out these new functionalities, we will continue to collaborate with all of California's container ports and the Governor's Office of Business and Economic Development.”

Green Ports Collaboration: “We will also continue to partner with other ports across the country and around the globe. Last year, for example, we, along with the Port of Los Angeles, signed agreements with the Port of Singapore and the Port of Shanghai to establish green and digital shipping corridors to enhance the sustainability of shipping across the Pacific Ocean. The supply chain information highway will enable us to support the establishment of these shipping corridors, and further our capacity to gather and make data available for our customers and partners.”

Pier Wind Offshore Wind Port: “I am pleased to announce that the Port of Long Beach is entering a new phase to develop Pier Wind, our proposed 400-acre terminal to assemble floating offshore wind turbines and help California move toward a renewable energy future. Last week, the Long Beach Board of Harbor Commissioners enter agreed to enter into a Memorandum of Understanding (MOU) with a California State Land Commission and the Port of Humboldt to advance the development of floating offshore wind energy off the coast of California. The agreement allows all parties to collaborate in permitting, community engagement, environmental justice, green port strategies, clean energy infrastructure, and Native American tribal consultation to advance a multi-port strategy for offshore wind development and deployment and workforce development. The Port of Humboldt recently approved the MOU and the State Land Commission is scheduled to consider the agreement today. The Port of Long Beach is pleased to help lead the effort to develop offshore wind energy resources in California, a move that will create new U.S. manufacturing while simultaneously ensuring a greater degree of energy independence for America. We hope that the public and the media will stay engaged on this exciting initiative.”