The container traffic at the Port of Los Angeles (POLA) and the Port of Long Beach (POLB), the primary gateways on the U.S. West Coast, saw record growth in July. This surge in demand is attributed to rising geopolitical tensions around the Red Sea, growing concerns over U.S. tariffs on China, and an increased rush to expedite exports and imports. Additionally, the back-to-school season spurred consumer demand for school supplies and electronics, contributing to the overall increase in cargo volume. The rise in trade with Korea and other Asian countries also played a significant role.

According to port statistics on the 26th, the Port of Los Angeles handled 939,600 TEUs (twenty-foot equivalent units) in July, a 37% increase compared to the previous year. This marks the highest July figure in the port's 116-year history and the best month in the past two years. The volume handled in July was 10% higher than the average for the same month over the past five years. A closer look at the port's July performance shows that imports reached 501,281 TEUs, a 38% increase compared to last year, while exports rose by 4% to 114,889 TEUs. Empty containers increased by 54% to 323,431 TEUs, often seen as an indicator of increased export activity to follow.

From January to July this year, the Port of Los Angeles handled 5,671,091 TEUs, more than any other port in the Western Hemisphere and an 18% increase over the previous year.

Gene Seroka, Executive Director of the Port of Los Angeles, noted, "This is the fourth time that imports have exceeded 500,000 TEUs in a single month, and exports have been increasing for 14 consecutive months, bringing our export levels back to those of 2019."

The Port of Long Beach also saw a massive surge in cargo volume in July. The port handled 882,376 TEUs, a 52.6% increase compared to the previous year, setting a new record for July and surpassing the previous July record set in 2022 by 12.4%.

In July, imports at the Port of Long Beach grew by 60.5% to 435,081 TEUs, while exports rose by 16.3% to 104,834 TEUs. Empty containers increased by 57.8% to 342,462 TEUs. From January to July this year, the port handled a total of 5,174,002 TEUs, a 20% increase compared to the previous year.

Experts cite several factors for the explosive growth in cargo volume at the ports of Los Angeles and Long Beach, including geopolitical risks in the Red Sea, increased trade with Korea and other Asian countries, U.S. tariffs on China, the back-to-school season's demand for supplies, and the labor negotiations at East Coast ports.

In particular, as the Biden administration prepares for the upcoming U.S. presidential election in November and with former President Donald Trump, who led a trade war with China throughout his term, running as the Republican candidate, companies are reportedly increasing their trade volumes in advance.

Mario Cordero, CEO of the Port of Long Beach, explained, "The increase in trade volumes is due to shipping companies ramping up trade ahead of potential tariff hikes and parents purchasing school supplies, which boosted cargo volumes ahead of the year-end peak season."

Gene Seroka, Executive Director of the Port of Los Angeles, added, "Concerns about disruptions in shipping due to geopolitical risks in the Red Sea and delays in labor negotiations at East Coast ports have led importers to purchase goods earlier than usual. Imports of school supplies, fall fashion, and Halloween items have been expedited, and this trend is expected to have a positive impact on the August cargo volume as well."

By Hongyong Park, Reporter

<Hongyong Park>