PORTS on the US West Coast registered a drop in container volume as well as import market share in September while facilities along the East and Gulf Coasts saw slight increases in their throughput.
However, it is too early to determine if this is the beginning of a trend or just a one-month anomaly for the ports that appeared to be recovering from the loss of business earlier in the year, IHS reported.
Statistics compiled by PIERS, a company within IHS, show that the West Coast market share of US containerised imports in September declined to 51.4 per cent from 52.5 per cent in August. By contrast, the market share of East Coast ports increased to 43 per cent in September from 42.1 per cent in August, while the Gulf Coast market share increased to 5.5 per cent from 5.4 per cent.
Figures posted on the website of the Pacific Maritime Association show a decline in West Coast ports' total container volume in September to 1.32 million TEU from 1.48 million TEU in August.
Total loaded containers handled by West Coast ports in September declined 4 per cent compared to September 2014, and containerised imports were down 2 per cent from September 2014, according to PMA numbers. The first nine months of 2015 have been a roller coaster ride for West Coast ports due to labour issues and the port congestion that resulted.
However, the trans-Pacific trade sorted itself out by summer and much of the business that had been lost to East Coast ports earlier in the year returned to the West Coast. Container volume, especially imports, has increased steadily since June.
Prior to the beginning of ILWU-PMA contract talks in May 2014, the West Coast market share of US imports had been consistently above 50 per cent. When there are no labour issues, West Coast ports offer faster time to market and competitive rates to inland destinations. Also, the ports are able to accommodate fully-loaded mega-ships of 8,000 to 14,000-TEU capacity in the trans-Pacific trade with Asia.
Importers in the summer of 2014 began to seek reliability in the trans-Pacific trades by shifting some of their business to the East Coast in anticipation of the ILWU contract expiration date of July 1. As a result of the congestion that followed, the West Coast import market share plunged to 45.9 per cent in January and 44.7 per cent in February.
The West Coast market share returned to 50 per cent in March and remained near or slightly above that level into the summer and spiked at 52.5 per cent in August before slipping somewhat in September.
Total container volume in Los Angeles-Long Beach declined 4 per cent from September 2014. Oakland was down 6 per cent from the same month last year. However, container volume in Seattle-Tacoma increased 4 per cent from September 2014. A diversion of container traffic from Portland most likely contributed to the increase in Seattle-Tacoma. Portland in September handled only 614 TEU, compared to 10,802 TEU in September 2014.
With the trans-Pacific trade preparing for the traditional slack season that occurs when all of the holiday season merchandise has been imported into the country, carriers will begin to announce their winter deployments. The lines are expected to remove capacity from both coasts during the winter months.
PORTS
05 November 2015 - 22:53
US West Coast ports lose market share in September box volume
PORTS on the US West Coast registered a drop in container volume as well as import market share in September while facilities along the East and Gulf Coasts saw slight increases in their throughput.
PORTS
05 November 2015 - 22:53
US West Coast ports lose market share in September box volume
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