Although cargo traffic increased again in July at the bellwether ports of Los Angeles and Long Beach, there is concern that this year’s “peak season” may not be as robust.  As reported in the Los Angeles Times, LA imports were up 21% to 370,000 containers from a year ago, while Long Beach’s import traffic increased 32.5% to 294,000 containers.  Given that trade cargo dried up significantly in these ports — and nationwide —  in 2009, these increases must be viewed with that in mind.  Moreover, some experts are worried that lukewarm consumer demand may have an adverse effect on the total peak season cargo traffic, which runs from July through October, in advance of the holiday season.

The full article, “Ports wary of stunted holiday rush,”  is available here.

As reported in The New York Times, US retailers are scrambling to find space on cargo ships for their imports, particularly from Asia.  Retailers “are outbidding each other to score scarce cargo space on ships, paying two to three times last year’s freight rates — in some cases, the highest rates in five years.”

Despite these efforts, even those who are able to secure space are not receiving merchandise in time for seasonal promotions, and the problem is expected to worsen for shipments during peak season.

The problems stems in large part from 2009, when retailers slashed inventories due to low demand in a recessionary economy. In response, carriers greatly reduced the number of ships and pared back service, and container manufacturers virtually ceased production. Given current economic volatility, both are being exceedingly careful in increasing their service levels, leaving many retailers in a lurch.

The full article, “Retailers Pay More to Get Cargo (No Guarantee),”  is available here.

Today’s Los Angeles Times reports that imports climbed in June at the ports of both Los Angeles and Long Beach, which together comprise the nation’s busiest seaport complex.  At the Port of Los Angeles, imports rose to 371,889 containers, an increase of 32% from June 2009, while at the Port of Long Beach, the number of inbound containers jumped by 27% to 262,053 containers.

While these numbers may show signs of improved economic conditions, some are not so sure.  Nancy D. Sidhu, chief economist for the Los Angeles County Economic Development Corporation, believes that the June’s increases are attributable to retailers replenishing their long-depleted inventories, and that any continued growth will depend on sustained consumer demand.

The two ports account for 40% of the United States’ imported containers.

The full article is available here.

Things are looking up for US importers, following the unprecedented capacity issues they have experienced for eastbound cargo from Asia over the last nine months.  Optimistic about increased 2010 trade volume from northeast Asia, Hyundai, the performance award winning ocean carrier, announced in a recent press release that it is adding capacity into the US/Asia Trade by bringing back its weekly PSW service to the US west coast.

This service will connect Korea, Taiwan, Hong Kong and South China to the US ports of Oakland and Long Beach.  The first vessel/voyage, the Hyundai Commodore 524, departed Kaohsiung on May 20^th and is set to arrive at Long Beach on June 6^th. 

For the latest scheduling information please visit Hyundai’s website, or contact your local Hyundai sales office.

Posted by CNI’s guest blogger:  Sandy Taylor, District Sales Manager, Hyundai Merchant Marine.  Tel:  952-893-1345. E-mail: mpsjt@hmm21.com