Port of Hueneme, agricultural imports and exports were up 3% for the 2020 with the year ending on June 30th but the Port’s vehicle import business is way down.
Port of Hueneme Executive Director Kristin Decas says agricultural imports and exports were up 3% for 2020 with the year ending on June 30th, but the Port’s vehicle import business is way down.
Decas told AJOT, “We are projecting a 3% increase in 2020 over 2019. However, we had projected an increase of 8% before the impact of Covid-19.”
“As always, the import of bananas has remained strong because demand is inelastic. People eat bananas as a staple in good times and in bad. So, our demand remains strong,” she said but added “in melons and pineapples, which are higher end fruit, we are seeing a backlog and slowdown in demand.”
One of the questions for 2021 “will be how consumer demand adjusts to the Covid situation and to the economic downturn. For example, if schools open then the demand for fruit and bananas for school lunches will continue. However, if public events get canceled, there could be a negative impact. The reality is we simply don’t know.”
Decas said, “Avocados and bananas are staples and these import commodities remain strong but pineapples and melons could see a decline.”
The Port traditionally is a sponsor for the Banana Festival which traditionally attracts 12,000 visitors: “This year we have had to cancel the festival because of Covid-19.”
The Port attempted to mitigate the impact of the cancellation “by stepping up our support for food banks and food drives here in Ventura County. Del Monte has delegated one staff person to support this effort and Chiquita is also supporting the food banks and food drive efforts.”
Auto Business Is Down
Decas noted that its auto business, which usually saw import of 10,000 cars per week, was reduced to zero autos for the week of June 5-12.
“The worst hit occurred when the OEM’s began to shut down their plants in different parts of the world and this led to a halt in production. Just to give an example, we average importing 10,000 cars a week. This week for the first time since I’ve been here, we imported no cars at all. Next week we are projecting 194 cars and we are also projecting a gradual improvement beginning in August,” she said.
The result is that for the year 2020 that ends on, for Hueneme, June 30th, “we are projecting a decline of 27% compared to 2019.”
Port Revenues Are Down
In 2019 revenues for the Port were $19 million: “For 2020 we are projecting revenues at 17 million dollars. However, we have had surpluses in the past and so we have funding in reserve so we don’t have to lay off personnel.”
