Traffic downturn widespread across US

On the West Coast, the ports of Long Beach and Los Angeles reported an 18% decrease in imports during February compared with the corresponding month in 2008. Further north, Oakland was down by 22%, Tacoma by 29% and Seattle by a whopping 39%. These ports are particularly suffering because the vast majority of their traffic is linked to Asia.

While ports on the east coast are better placed because of their diversified traffic mix – they receive vessel calls from Asia, Latin America and Europe – they have also seen trade fall away.

New York/New Jersey has reported that business has dropped by just under 7%, although at Charleston, in South Carolina, a 30% decline has been reported.

In an attempt to hold on to traffic, both Long Beach and Los Angeles have reduced port charges and handling rates, while at the same time offering financial incentives for lines thinking of switching business there. Meanwhile, the dire situation in Oakland has resulted in 12% of employees being made redundant.

However, it is hoped that the recent stimulus package announced by the Obama government will help improve business in the second quarter; should that not be the case, some industry experts are warning that the freefall in business could continue.