The San Pedro Bay Port Complex, comprising the Port of Los Angeles and the Port of Long Beach, handles about one-third of all containerized imports to the United States each month. As the 10th busiest port in the world, it plays a critical role in the local, regional, and national economy, particularly impacting truckload and intermodal freight bound for the East Coast and Midwest.

Los Angeles ranks among the top five freight markets in the U.S. in terms of truckload volume, influencing national spot rates significantly. By the end of 2025, Los Angeles imports are expected to increase by 24% from the previous year, driving outbound truckload volumes up by 31% compared to 2023. Meanwhile, truckload capacity has become tighter, causing spot rates to rise by 13% year-over-year, averaging $2.32 per mile for outbound shipments.

Following a surge in imports during the pandemic and a slowdown in 2024, the Los Angeles freight market has rebounded quickly, outpacing most other regions. This recovery can be attributed to businesses trying to avoid disruptions from labor actions by the International Longshoremen Association (ILA) on the East and Gulf Coasts. Additionally, the threat of higher tariffs on Chinese imports due to changes in U.S. administration contributed to this rebound.

The Port of Los Angeles experienced record-high congestion in January 2022, with 109 vessels waiting to unload, but since then, disruptions have been minimal, even with the surge in imports at the end of 2024. Much of this improvement is due to technological advancements, particularly through The Marine Exchange, which oversees shipping traffic and piloting operations within the port.

Since its inception in 1923, The Marine Exchange has evolved with the maritime industry. It transitioned from using manual methods like chalkboards, cards, telescopes, and scouts to utilizing radios, radars, and computers. In its early days, runners would physically report incoming vessels to base operations. Today, it operates similarly to an air traffic control center for massive cargo ships.

To manage increasing ship traffic, The Marine Exchange established the Vessel Traffic Advisory Service (VTAS) in 1981, a precursor to the modern Vessel Traffic Service (VTS). VTAS was a voluntary system designed to enhance vessel navigation and safety in the crowded Los Angeles/Long Beach harbor.

 

Source: www.dat.com