A quick update on the current logistics landscape in Southern California and what shippers can do to mitigate potential disruptions:
Import Surge and Empty Container Imbalance
- January saw a sharp increase in imports as shippers rushed to beat anticipated U.S. tariffs and Lunar New Year factory closures.
- Year-over-year import growth:
- Port of Long Beach: up 31.3%
- Port of Los Angeles: up 12.6%
- (Source: PIERS, S&P Global)
- With exports slowing (LA exports down 18% in February), most containers are being returned to Asia empty. Empty container volumes were up 16% during the same period.
Operational Impact on Drayage and Terminals
- Empty containers are now heavily concentrated at drayage yards and terminals, many still mounted on chassis.
- This is creating congestion, tying up equipment, and triggering potential detention and demurrage fees.
- Truckers report difficulty in securing return appointments—some terminals require dual transactions (return empty/pick up full), further complicating operations.
- Marine terminal operators note that many appointment slots, especially night and weekend shifts, go unfilled.
Contributing Factors
- Limited appointment availability or inconvenient return windows
- Terminal strategies to push more traffic to night gates
- Post-Lunar New Year blank sailings slowing container repositioning
- Lack of compensation to truckers for storing ocean carriers’ containers
Source: NCBFAA