The Port of Long Beach had its busiest month ever in August of 2024 processing 913,873 TEUs of container cargo “our dockworkers, marine terminal operators achieved a 33.9% increase over the same month last year (2023),” according to Mario Cordero, Executive Director, Port of Long Beach.
Speaking at a media briefing on September 12, 2024, Cordero and Noel Hacegaba, Chief Operating Officer, Port of Long Beach said the remainder of 2024 looks promising for the Port.
Cordero said the record numbers were fueled largely “by the surge in imports, which increased here at the Port of Long Beach, on a year-to-year basis, to 456,868 TEUS, a 40.4% increase over August 2023.”
Cordero noted:
- Exports were up 12% over August 2023 at 104,646 TEUs
- Empty containers were up 33.7% from August 2023 at 352,360 TEUs
He added that the Port’s San Pedro Bay partner, the Port of Los Angeles, is contributing to the current boom in business: “And it's not just the Port of Long Beach. We see that throughout the San Pedro Bay complex volumes are on track for a very strong year as the shippers seek out this gateway amid signs of potential complications elsewhere. We are at only 74% capacity on our container terminals. And we are operating smoothly.”
Hacegaba noted that the Port of Long Beach is benefitting from problems on the East and Gulf Coasts as well as in the Red Sea: “And as Mario pointed out, we are seeing some evidence of … some front loading driven in large part by some of these factors affecting the global supply chain. Whether it is the drought at the Panama Canal, the concern over a protracted labor negotiation on the East and Gulf Coast, or the incidents at the Red Sea. All of that converges to making our gateway more appealing.”
East & Gulf Coast Strike Threat
Cordero said: “I do encourage the parties (East and Gulf Coast ports) to come to a resolution in the interest … of the nation's supply chain. But should there be a strike, I am very optimistic that both the Ports of Long Beach and Los Angeles, that is the San Pedro Bay Gateway given the application of data transformation, operational transformation, and lessons learned from Covid, are in a very good position … to move the cargo in a way that we are not going to have concerns or the situation that came up during the Covid pandemic. So, I think, again, I'm very optimistic we're going to be able to move the cargo to the … expectations of the shipper.
Truck and Rail Dwell Times
Cordero noted that “overall container dwell time shows “the vast majority of containers are moving out of our terminals in four to eight days. Rail dwell time is averaging just four days, which is pretty good compared to other ports around North America. Truck turn times are at an hour or less for most of our terminals … But better utilization of appointment systems as well as utilization of ships and double flex time have been … effective in our ability to manage the increased volume …We've expanded hours of operation. I want to thank the Long Beach terminals who have done so. Again, lessons learned from the Covid Pandemic era.”
Hacegaba added: “As Mario noted, containers are moving quickly off ships and moving through our terminals to inland points efficiently. We remain in close contact with our ocean carriers, terminal operators, railroads, equipment providers, and labor and industry partners to make sure we are employing what I call the muscle memory that we all develop during the supply chain crisis. Our terminal operators are also prepared to flex their gate hours as necessary…”
Cordero noted that on-dock rail utilization dropped to 17% from January through July of 2024 but has now increased to 25%: “Now, this is important because more on-dock rail utilization enables our terminals to manage the surge in cargo volume more efficiently and literally around the clock in the years ahead. We expect our on-dock utilization to continue to grow. Just in July, we broke ground on our Pier B on-dock rail support facility. This is a $1.6 billion project that will help us achieve up to 35% of on-dock rail by the time it's completed in 2032. With projects like Pier B, the Port of Long Beach is literally on track to expanding our rail capacity. I think again, lessons learned from Covid. We have had a very good rapport with our Class One railroads which we have addressed the issue of rail car shortage that happened in the worst of times during the Covid era. Right now, we're not seeing that. And hopefully in the future, again, we all learn and work and collaborate to avoid that type of scenario in the future.”
Hacegaba added: “When you look at the number’s utilization alone it, (rail dwell time) reached its lowest point during the (Covid-related) supply chain crisis at 17%. And that was a large part because of the long rail dwell times that the Port complex was sustaining … at its worst, it reached 16 days … today on-dock utilization in Long Beach is up to 25%. Yet, as Mario pointed out, rail dwell is down to four days. So, I would say that the numbers themselves are evidence that on-dock rail is working, and it is working very efficiently.”
Zero Emission Trucking
Cordero noted: “We are working with our drayage providers to transition the trucking fleet that services our ports to zero emissions trucks. This is the fulfillment of our goal of reaching a hundred percent zero-emissions trucks by 2035 per the latest update to our Clean Air Action Plan. In partnership with the Port of Los Angeles today … we are nearing 400 zero-emissions trucks operating in the Port complex, including both electric and hydrogen-powered trucks. Now, that may seem like a small number compared to the 23,000 trucks registered to serve the Port complex, but a year ago today that number was just 114. And we expect this number to continue to increase (as) the number of zero (emission) trucks … hit the market, and as we build out the charging infrastructure inside and outside the Port complex … We have nearly 60 public charging units now open.”
