Holding the coveted title of No. 1 has been a long-standing achievement for the Los Angeles and Long Beach ports, a dynamic duo that has reigned supreme in international trade for over two decades. These interconnected trade powerhouses are responsible for facilitating the movement of nearly 40% of Asia’s imported goods into U.S. markets and manufacturing facilities. The San Pedro Harbor, where this bustling activity occurs, sustains tens of thousands of jobs throughout Southern California, relying on the steady flow of imports and exports.
Despite the tumultuous disruptions caused by the pandemic’s supply chain challenges, a congested flotilla of ships resembling a floating traffic jam, and a labor dispute among dockworkers in recent years, these neighboring ports have managed to maintain their supremacy in the realm of import and export. The rewards of this achievement extend beyond mere boasting rights, encompassing the ability to attract greater business ventures, investments, and employment opportunities.
However, the tranquil waters of this dominance were stirred when last year, the East Coast’s competitive ports of New York-New Jersey released a series of monthly alerts claiming the title of the busiest cargo container handler in the United States. This challenge culminated in April with a press release from the Port Authority of New York and New Jersey declaring their resurgence as the nation’s premier port. This announcement spurred a flurry of media coverage speculating on a historic shift in the balance of power.
In the April news release, Port Authority Chairman Kevin O’Toole boldly proclaimed, “The Port of New York and New Jersey is again No. 1 in the nation,” while Executive Director Rick Cotton emphasized that this change demonstrated the port’s reliability and stability in contrast to the challenges faced by other ports.
However, a deeper examination of the data exposes some statistical maneuvering by Port Authority officials. Instead of considering the combined efforts of Los Angeles and Long Beach, as is common among economists and shipping experts, the Port Authority compared the freight traffic of its expansive two-state domain to the individual ports of the West Coast. Recent data reveals that even amid labor disputes on the West Coast during the first half of the year, Los Angeles and Long Beach managed to handle a significantly greater volume of freight than New York-New Jersey.
Lamenting this misrepresentation, L.A. Port Executive Director Gene Seroka commented, “It’s unfortunate because some people in policy areas or in business areas are making decisions on whether to do business with us or not. We have been the nation’s busiest container port for 23 straight years.” Echoing this sentiment, Mario Cordero, Chief Executive of the Long Beach Port, asserted, “We will continue to be the biggest gateway for international trade for years to come.”
The subtle sparring between these ports underscores the challenges faced by Los Angeles and Long Beach. These challenges have led to a loss of business to rivals along the East and Gulf coasts, catalyzed by labor disputes and other disruptions. Gene Seroka estimated that his port has surrendered about 15% of its cargo to competing harbors.
Current port statistics highlight the continued prowess of Los Angeles and Long Beach, with a combined movement of 7.9 million cargo containers in the first half of the year, outpacing the 3.7 million containers handled by New York-New Jersey. Notably, New York-New Jersey did manage to secure the second spot in 2022 and during the first six months of 2023, illustrating the evolving shipping patterns that have redistributed business away from Southern California to ports on the East and Gulf coasts.
The growth of manufacturing in nonunionized Southeastern states has played a role in this shifting dynamic, according to economist Jock O’Connell. This shift has prompted a reevaluation of the most efficient trade routes from Asia to the United States, favoring ports on the Atlantic and Gulf coasts. Additionally, global tensions have prompted businesses to diversify their manufacturing away from China to countries like Indonesia, Malaysia, and Vietnam, further influencing the choice of shipping routes.
To maintain their competitive edge, East and Gulf coast ports have actively pursued funding for harbor deepening and improved accessibility, expediting cargo movement. Infrastructure enhancements are instrumental in enabling growth at major seaports, as exemplified by the Port of Los Angeles’ success with the construction of Pier 400, which lured the world’s largest shipping line, Maersk, away from its Long Beach counterpart.
In recent times, the lion’s share of investments has not flowed toward Los Angeles and Long Beach, resulting in other ports gaining ground in the market. While the recent allocation of state grants signifies a step toward revitalization, these ports have received a smaller portion of federal funds from the 2021 infrastructure bill and other funding mechanisms.
Despite the trials, experts contend that Los Angeles and Long Beach possess distinctive advantages that will help them maintain their leadership position. Inland Empire economist John Husing cites superior rail connections and an extensive network of warehouse and distribution resources as factors that will sustain their prominence. He confidently predicts, “The level of infrastructure here in Southern California is so deep that this will continue to be the No. 1 location for trade coming into the United States for a long time to come.”
Source: “Ports Spar Over Coasts’ Size” by Transport Topics (https://www.ttnews.com/articles/ports-spar-coasts-size)
