California’s Long-Embattled Ports Are Winning Back Imports
U.S. importers are rediscovering the lure of Southern California ports. Trade is swinging back to the ports of Los Angeles and Long Beach after a period in which pandemic-driven shipping disruptions and broader shifts in manufacturing pushed supply chains more heavily toward Gulf Coast and East Coast ports.
The Southern California ports in September, October and November recorded year-over-year increases in containerized imports of between 17% and 31%, according to ports data. At the same time imports fell at East Coast gateways such as Georgia’s Port of Savannah and the Port of New York and New Jersey. Logistics executives say the neighboring Southern California ports, long the anchor of U.S.
supply chains built on trade with Asia, are winning back business in part because of improved labor relations with dockworkers following resolution of long-running contract talks last year. More recently, disruptions at the Panama Canal and the Suez Canal, both of which feed East Coast and Gulf Coast ports, have led importers to route their goods through California to avoid longer transit times and higher costs. For many importers, California ports are cheaper and easier to ship through because they are closer to Asia and have extensive truck and rail connections to other parts of the country, said Jamie Bragg, chief supply-chain officer at Tailored Brands.
The parent company of Men’s Wearhouse and Jos. A. Bank diverted most of its imports from Southern California to Houston during the pandemic.
Read more on livemint.com
