Port Activity Offers Economic Snapshot
Posted 07-22-2010 at 12:01 PM by Albert Fong
A few days ago, I ventured along the waterfront whose route took me along the Port of San Francisco. The port by the bay has certainly seen better days, and many of the buildings that once housed bustling canneries and fishing outposts are now mostly populated by tech startups and restaurants. These days, port activity is more of an afterthought, if thought about at all, for most people. Honestly, I likely wouldn’t give it much thought either if I weren’t in the logistics industry. The reality is that port activity can provide a clear snapshot of the economy and its direction.
Port traffic in the key regions across the states has seen marked improvement supplemented by jobs. For example, Los Angeles saw imports rise 32% and exports by 13% from last year, while Long Beach experienced increases of 27% and 2%. These numbers point to several things: a significant rise in traffic, increased hiring in dock workers, and a rising trade imbalance. Container volume also saw increases on the East Coast with New York/New Jersey seeing a 17% increase in 20-foot containers, while Savannah was up nearly 25%. Keep in mind that the numbers are all still lower than those before the recession, but they’re certainly better than last year.
An economist will talk about the multiplier effect which is what you hope for when it comes to positive growth. Inventory and trade levels go hand in hand because as one increases, more than likely so will the other. And with the increased hiring of dock workers, so does the number of other logistics-related jobs. Of course, at the end of this supply chain is business and ultimately, consumer demand that will determine the degree and sustainability of this growth. This country isn’t out of the woods yet with lagging overall unemployment and tight-fisted credit still major concerns, but the recovery signs are there.
Now, all you need is a plan to take advantage of that recovery and help it along.
Port traffic in the key regions across the states has seen marked improvement supplemented by jobs. For example, Los Angeles saw imports rise 32% and exports by 13% from last year, while Long Beach experienced increases of 27% and 2%. These numbers point to several things: a significant rise in traffic, increased hiring in dock workers, and a rising trade imbalance. Container volume also saw increases on the East Coast with New York/New Jersey seeing a 17% increase in 20-foot containers, while Savannah was up nearly 25%. Keep in mind that the numbers are all still lower than those before the recession, but they’re certainly better than last year.
An economist will talk about the multiplier effect which is what you hope for when it comes to positive growth. Inventory and trade levels go hand in hand because as one increases, more than likely so will the other. And with the increased hiring of dock workers, so does the number of other logistics-related jobs. Of course, at the end of this supply chain is business and ultimately, consumer demand that will determine the degree and sustainability of this growth. This country isn’t out of the woods yet with lagging overall unemployment and tight-fisted credit still major concerns, but the recovery signs are there.
Now, all you need is a plan to take advantage of that recovery and help it along.
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