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April Trade Volumes Rebound at SoCal Ports
Container volumes in April at the Port of Los Angeles and Long Beach bounced back, rising 25% month-over-month. Despite the bounce back, container volumes on the year are down 12.8%, reports JLL. Researchers say COVID-19 has wreaked havoc on the global supply chain, and resulted in a significant decline in volumes at the Ports of Los Angeles and Long Beach.
This decrease in container volumes adds to the steady declines that started cropping up in late 2019, when the effects of the trade war between the United States and China started to dampen container flow between the two countries.
JLL writes, “over the near-term, we expect to see volatility in container volumes as the global supply chain rushes to catch up after the initial shock of COVID-19 and shelter-in-place orders. This will then be quickly followed by decreased volumes as record unemployment weighs on consumer demand.”
Looking out over the horizon, JLL says the long-term expectation is for a steady rebound in port activity as the shift to e-commerce rapidly accelerates demand for global trade.
For comments, questions or concerns, please contact Dennis Kaiser
