-November 23,2023-
Shipping up/Costs down
America Trucking Association says truck tonnage increased 1% in October supported by a decline in fuel prices. Last Thanksgiving retail diesel was more than a dollar higher than it is today. The US Energy Information Agency says the average California diesel price is now $5.64 down from $6.29 in October 2023. Lower diesel price will make it cheaper to ship and deliver goods as well as plow fields across America and help in the fight against inflation.AAA says diesel prices in Visalia are down 54 cents from a month ago.(Chart shows volume of tonnage)
West Coast port activity up
Long Beach
Cargo moving through the Port of Long Beach in October rose for a second consecutive month amid preparations for the upcoming holiday shopping season and ongoing efforts to recapture market share.
Dockworkers and terminal operators moved 755,150 twenty-foot equivalent units (TEUs) last month, up 14.7% from October 2022. Imports increased 23.6% to 363,300 TEUs and exports decreased 24.8% to 90,073 TEUs. Empty containers moved through the Port grew 23.3% to 301,777 TEUs.
“Cargo is rebounding and we are continuing to collaborate with our industry partners to recapture market share and invest in infrastructure that will position us for future growth,” said Port of Long Beach CEO Mario Cordero. “We are anticipating moderate growth through the rest of the year as retailers continue to stock shelves for the winter holidays.”
Oakland
At the busy Port of Oakland full export TEU increased 4 per cent in October 2023 compared to October 2022, reaching 68,974 TEU.
The fading of supply chain congestion caused by pandemic-related disruptions continues to bring exporters back, said the port in its latest statement.
Port of Oakland Maritime Director Bryan Brandes, said: “Our port remains the preferred export gateway for fruits, nuts, meats, and grains since we are the closest to agricultural areas in the Central Valley.
“We also offer the fastest transit times to Asia since we are the last port of call in the US before ships go back across the Pacific.”
READ: Port of Oakland, Japanese trade officials team up to reduce shipping emissions
The Port of Oakland’s full imports are down 8 per cent in October 2023 against October 2022. Import levels appear to have levelled off at roughly 70,000 TEU per month.
According to the port, nationwide consumer spending has slowed, however, consumer spending in Northern California reportedly remains high. Nevertheless, it has dipped slightly from its peak during the pandemic.
“Import growth is expected to remain flat as traffic continues to stabilize after the significant spikes we saw during the pandemic years,” added Brandes.
“Shipping rates remain low and carriers are signalling that will remain well into 2024.”
Worldwide, cargo price indexes are way down from a year ago when high shipping costs helped create shortages at the retail level.