Despite a slowing economy, weak consumer confidence and a slumping housing market, container traffic at the Long Beach-Los Angeles seaport will surge to record levels this year, according to a new report.
The number of containers is expected to jump more than 9 percent this year, to 17.2 million TEUs (twenty-foot-equivalent units), securing the seaport's long-standing position as America's busiest.
"By way of comparison, the two ports handled 9.5 million TEUs in 2000," said Jack Kyser of the Los Angeles County Economic Development Corporation (LAEDC), who sponsored the study.
The report, "International Trade Trends and Impacts," comes on the heels of another economic study showing that every congressional district in America imports or exports commodities moved through the L.B.-L.A. port complex.
In the new study, authors predict that trade valued at nearly $300 billion will be handled at the ports this year, much of it from China, Japan and Korea.
Exports of American-produced goods are also expected to increase dramatically this year following double-digit growth in 2006.
"A piece of good news is that exports out of the (Los Angeles) customs district should continue to grow
Advertisement
rapidly, rising by 14.9 percent, due to weakness in the U.S. dollar combined with favorable economic conditions in the region's major trading partners," Kyser said.
While 2007 is expected to bring mostly positive economic news at the ports, several potential challenges loom in 2008, the study notes.
Included in this list are labor negotiations between thousands of dockworkers, represented by the International Longshore and Warehouse Union, and marine terminal operators. The ILWU contract ends in June 2008.
A 2002 dockworker lockout crippled the ports, and shippers are reportedly considering alternative shipping lanes in the event of a repeat.
Also, new environmental regulations affecting San Pedro Bay and federal security cards are listed as "wild cards" to watch out for in 2008.
The number of containers is expected to jump more than 9 percent this year, to 17.2 million TEUs (twenty-foot-equivalent units), securing the seaport's long-standing position as America's busiest.
"By way of comparison, the two ports handled 9.5 million TEUs in 2000," said Jack Kyser of the Los Angeles County Economic Development Corporation (LAEDC), who sponsored the study.
The report, "International Trade Trends and Impacts," comes on the heels of another economic study showing that every congressional district in America imports or exports commodities moved through the L.B.-L.A. port complex.
In the new study, authors predict that trade valued at nearly $300 billion will be handled at the ports this year, much of it from China, Japan and Korea.
Exports of American-produced goods are also expected to increase dramatically this year following double-digit growth in 2006.
"A piece of good news is that exports out of the (Los Angeles) customs district should continue to grow
Advertisement
rapidly, rising by 14.9 percent, due to weakness in the U.S. dollar combined with favorable economic conditions in the region's major trading partners," Kyser said.
While 2007 is expected to bring mostly positive economic news at the ports, several potential challenges loom in 2008, the study notes.
Included in this list are labor negotiations between thousands of dockworkers, represented by the International Longshore and Warehouse Union, and marine terminal operators. The ILWU contract ends in June 2008.
A 2002 dockworker lockout crippled the ports, and shippers are reportedly considering alternative shipping lanes in the event of a repeat.
Also, new environmental regulations affecting San Pedro Bay and federal security cards are listed as "wild cards" to watch out for in 2008.