San Bernardino County Economic Update

ONT Airport & LA/LB Seaport Traffic for January 2010

Passenger traffic at LA/Ontario International Airport (ONT) declined in January to 364,582 passengers, a level similar to that of January 2009.  In January, container volume at the ports of Los Angeles and Long Beach was 1,001,774 TEUs.  The volume was 1.6% above the 1/'09 level.

Year-end Port Traffic Analysis

The ports of Los Angeles and Long Beach both reported their December 2007 and preliminary 2007 annual container traffic numbers.  Together, these two mega ports handle nearly 60% of all West Coast port traffic in 2006 (in terms of tonnage), and their market share will likely increase with the introduction of larger container ships that can only call on deep seaports.

For 2007, Port of Los Angeles handled a total of 8.4 million TEUs, a decline of 1.4% from 2006.  (Container counts are reported in twenty-food equivalent units (TEUs) so the numbers are comparable across the various ports around the world.)  The number of loaded inbound container was 4.4 million TEUs, just around 2,000 TEUs more than 2006.  The number of loaded outbound container was 1.6 million TEUs, a 12.9% increase over 2006.  The rest were empty containers, and most were outbound.

For 2007, Port of Long Beach handled a total of 7.3 million TEUs, an increase of 0.3% from 2006.  The number of loaded inbound container was 3.7 million TEUs, a 0.4% decline from 2006.  The number of loaded outbound container was 1.6 million TEUs, a 22.0% increase over 2006.  The rest were empty containers, and most were outbound.

Together, the "Twin Ports" handled a total 15.7 million TEUs in 2007, a 0.6% decline from 2006.  They handled 8.1 million loaded inbound TEUs (-0.2% from 2006) and 3.2 million loaded outbound TEUs (+17.2% from 2006).  But what's more interesting is the change in the inbound-to-outbound ratio of loaded containers, which serves as a proxy for the import-to-export ratio.  That ratio was 3.02 in 2005, 2.99 in 2006, and now 2.55 in 2007.  In other words, export growth is faster than import growth.  The change is noticeable and statistically significant.  The slowing U.S. economy and the weaker dollar are likely the main causes.

Since San Bernardino County is a major logistics center for international trade, the County benefits no matter which way the trade flows.  As long as both the land-side infrastructure (e.g., railroads and highways) and the ports operate efficiently, Southern California will remain the most important player in the Pacific Rim trade, and the County will benefit economically as a result.  Therefore, local leaders must think strategically and prepare the area for further trade growth.  Investments in infrastructure such as rail systems and highways must be given enough attention.