Wednesday, July 14, 2010

LA Port Shipping Boom: Highest June on Record

I reported yesterday that international trade reached a 19-month high in May, and today's report from the Port of Los Angeles provides additional statistical evidence of an ongoing boom in international trade activity.  Shipping volume reached a 22-month high in June of  730,318 TEUs, the highest monthly shipping activity since August of 2008 (see chart above), and 32.38% above June last year.  On a year-to-date basis, shipping activity at the LA Port is up by 15%. Other highlights include:

•Strengthening of the overall trade environment.

•Imports were up 32%, Exports were up 12%, empty containers were up 53%, overall up by 32% for month of June, YTD up 15%

•Vessel services were upsized to handle the surge of volume

•Carriers are bringing back peak season services – six more vessel arrivals over June 2009

•Vessels are arriving close to full capacity

•Large amount of empty container returns to Asia as a result of higher import volumes and to replenish the shortage of empty equipment in Asia    

•For the month of June, this year sets an all-time record high 


At 7/14/2010 9:48 AM, Anonymous Anonymous said...

Great for Wal-Mart et al but how can this possibly be viewed as a positive for the American people?

This is just more jobs going to foreign lands.

At 7/14/2010 10:21 AM, Blogger McKibbinUSA said...

I am considering your data -- does this mean that the trade deficit is rising as more is imported than is exported, at least from the West coast? Your chart is interesting for sure...

At 7/14/2010 10:42 AM, Blogger Jason said...

How does this information reconcile with lower sales revenues reported earlier today? I would think higher shipments would mean higher revenues. A sign of deflation?

At 7/14/2010 11:32 AM, Anonymous Benny The Man said...

Dr. Perry's evidence of recovery is not refutable--but from here forward is not clear. As Jason points out, sales are sputtering, and federal deficit spending has done all it can do.
Te Fed needs to engage in aggressive quantitative easing.
I would rather live through a long inflationary boom, than a long deflationary recession.
That confederacy of feckless poltroons, that loathsome ring of grifters known as the Republican Party, wants to go the extended recession route.

At 7/14/2010 12:33 PM, Blogger McKibbinUSA said...

Dr Perry's evidence of West coast shipping shows that US imports were up 32% (i.e., the US "bought" a third more), and US exports were up 12% (i.e., the US "sold" a smaller percentage more of what is generally a lower number than imports to begin with). If we the US is buying more from overseas, and selling a little more to overseas customers, then we are not really ahead. In fact, the US trade deficit was reportedly significantly higher than earler in the year, which means the GDP is declining. What the US needs most is to increase exports so that they exceed imports and actually increase the US GDP on a net basis. In fairness to Dr Perry, he was not reporting that the shipping data was either good or bad news. Thank you for the opportunity to comment.

At 7/14/2010 1:10 PM, Anonymous Eric H said...

"That confederacy of feckless poltroons, that loathsome ring of grifters known as the Republican Party, wants to go the extended recession route."

And since the noble Democrats have had control of the House and Senate for four years and now control the White House (and various banks and car companies), what the Republicans want really hasn't mattered much recently. The Dems can just "deem" the recession over...just like a fake budget.

At 7/14/2010 1:52 PM, Anonymous morganovich said...

the US trade deficit has been widening since mid 2009.

may showed another increase to the highest trade deficit of 2010 despite a decrease in net oil imports in the last couple months.

trade is certainly up, but balance of trade is deteriorating.

At 7/14/2010 4:20 PM, Anonymous Anonymous said...

Loaded inbound traffic was up 30.0% compared to June 2009. Inbound traffic is now up 1% vs. two years ago (June '08).

Loaded outbound traffic was up 7.7% from June 2009. Exports were off almost 4% from May 2010. Unlike imports, exports are still off from 2 years ago (off 13%).

At 7/14/2010 7:23 PM, Blogger Jason said...

Benny: I don't think you are giving the "confederacy of feckless poltroons" that is the Democratic Party their due here. The Dems are just as to blame as the Republicans for this present mess. Free market economic robotons needed "think of the poor, unfortunate souls without homes of their own" morons to create the massive bubble, who's demise, we are still dealing with. And for every Republican who wouldn't raise taxes despite year after year of deficit, there's at least one Democrat who would sooner die than shrink government.

Frankly, we have the democracy we deserve. We keep electing people, who, honestly, aren't that smart and/or are self centered narcisists out for personal glory. Problems endemic to both parties.


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