LONG BEACH saw a big rebound last year in container throughput in 2015, handling 7.2 million TEU , the third time in its 105-year history that it exceeded seven million TEU.
Volume growth was 5.4 per cent year on year, nearly double that of the US economy in 2015. During July and August, Long Beach achieved record cargo volumes resulting in the port's biggest quarter in its history with more than two million TEU moved through the port in the third quarter alone, reported LA-area Global Trade Magazine.
Although the port saw record volumes through the peak season, it experienced no chronic congestion problems as it had in the past.
"In fact, trucking queues and turn times dropped by a third and rail fluidity and velocity reached record levels of performance," said port CEO Jon Slangerup in his state of the port address.
"And perhaps most satisfying was the fact that in the back half of the year, we began gaining market share after losing share for four years in a row, ' he said.
Mr Slangerup attributed the improved performance to the agreement between port labour and management which was reached in February with the help of US Labour Secretary Tom Perez.
"While we were predicting it would take three months for operations to recover, it actually took half the time, just six weeks, to clear the backlog of ships at anchor and begin to approach pre-congestion levels of throughput and system fluidity," said Mr Slangerup.
As the labour negotiations were going on, the port had already been working for several months with the three primary chassis providers to create an interoperable chassis pool of pools, in a joint effort with the Port of Los Angeles.
"In March the pool of pools was launched," said Mr Slangerup, "with an immediate positive impact on operations."
At the same time, Long Beach inaugurated a new initiative called supply chain optimisation, or SCO, also a joint programme with Los Angeles.
"Our SCO mission is to create a marine supply chain that provides end-to-end visibility and time-certain delivery of containerised cargo from origin to destination," he said.
"We are beginning to optimise efficiency, minimise costs and continually improve the speed to market of goods moving through our port complex" by employing advanced technologies, processes and metrics."
The port of Long Beach also sought to engage shippers to win back their business. The port's commercial operations team travelled the globe, speaking with more than 300 shippers, ocean carriers, and trade associations, "explaining what went wrong, how we were fixing things, and encouraging their participation in our SCO gatherings."
With stakeholders willing to get involved in SCO, the port began to see volumes start to rebound.
"So long as we protect and enhance our value proposition," Mr Slangerup added, "we have little to fear from other ports or the Panama Canal stealing our cargo and the jobs that come with it. Not to mention that over half of the container vessels currently on order will be too big to fit through the expanded Panama Canal."
PORTS
07 February 2016 - 21:16
Long Beach 2015 volume back to pre-recession days - 7.2 million TEU
LONG BEACH saw a big rebound last year in container throughput in 2015, handling 7.2 million TEU , the third time in its 105-year history that it exceeded seven million TEU.
PORTS
07 February 2016 - 21:16
Long Beach 2015 volume back to pre-recession days - 7.2 million TEU
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