The Port of Los Angeles was hit hard last year by the coronavirus pandemic, like nearly every other institution, with cargo numbers plunging during the first half of 2020 before spiking ahead of the holidays, construction projects delayed and personal-protective equipment needing to be quickly moved across the region.
That was the assessment of port Executive Director Gene Seroka during his sixth annual State of the Port address on Thursday Jan. 14, during which he gave his assessment of the 2020 rollercoaster and a look ahead to the current year.
When the coronavirus initially hit, first in China, America’s largest trading partner, and then in the U.S., cargo numbers at the nation’s busiest port plunged — before skyrocketing ahead of the holidays. The port’s third- and fourth-quarter 2020 cargo volumes were up by 50% over the first half of the year. And the port handled 94% more traffic the week before Christmas than the same week in 2019.
That left the port’s overall numbers for last year only 1.5% below 2019’s near-record cargo numbers, despite the abysmal first five months of 2020 — during which cargo dropped 19%.
“Our container business in 2020,” Seroka said, “was the most erratic we have ever seen.”
Still, the late-year consumer spending splurge that drove the later numbers skyward made 2020 the fourth highest-volume year in the port’s history.
Stroke, looking both at 2020 and the year ahead, also highlighted:
- A new digital “Control Tower” to provide new real-time views of turn times;
- A new truck incentive program, approved earlier on Thursday at the regular Los Angeles Board of Harbor Commissioners meeting, to provide financial rewards for terminal operators who move cargo faster and more efficiently;
- Continued progress on capital projects including eight major terminal, rail and road improvements; and
- A continued push toward reaching the goal of zero-emission terminal equipment by 2030 and a zero-emissions drayage fleet by 2035, with 16 demonstration projects currently underway.
Throughout his virtual noontime address — delivered on the deck of the historic Battleship Iowa — Seroka noted the resilience shown by port employees, as well as terminal operators, members of the International Longshore and Warehouse Union and port truckers, all of whom kept the port open and operating everyday throughout the once-in-a-lifetime challenge.
“We must always be prepared to pivot and change directions,” he said.
Few time periods drove that lesson home as much as 2020 did.
Some port goals for 2020 did take a hit, after all, including the $150 million West Harbor waterfront redevelopment project getting pushed back; the first phase was scheduled to open in the fall of but is now expected to do so in late 2022).
Then there was the drayage truck inefficiencies and port congestion caused by the wild cargo surges in 2020.
The port’s growing cruise operations also “took a drastic hit,” Seroka said, “and so did our visitor-serving waterfront businesses.”
Vehicle imports were down, trade tensions with China impacted steel volumes and crude oil volume dropped, reflecting the lack of travel last year.
“Hardest hit of all were our exports,” Seroka said.
Only one in four containers returning to Asia, he said, was loaded with outgoing cargo from the U.S.
Even so, the port did make progress toward the infrastructure needed for both the Wilmington and San Pedro waterfront projects, including a town square that will be next to the Los Angeles Maritime Museum.
The port also stepped up to help the region deal with the ongoing pandemic.
Mayor Eric Garcetti, for example, appointed Seroka in March to head up Logistics Victory Los Angeles, an effort that so far has provided more than 4.6 million units of personal protective equipment and other supplies to three dozen area hospitals and more than 150 skilled nursing facilities.
Looking toward the nascent current year, Seroka laid out plans for more job creation, cargo growth and infrastructure development.
Seroka also stressed that the pledge to pursue and develop zero-emission technology was fully on track, and highlighted a continued pursuit of more digital technology to track ships and provide real-time information for truck capacity and turnaround times — which would make the port more efficient.
The Port of Long Beach, the nation’s second busiest port, has scheduled its annual State of the Port address for 9 a.m. Feb. 4. Executive Director Mario Cordero, Seroka’s Long Beach counterpart, will also deliver his address virtually because of the pandemic.
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LA Port director reviews the dizzying ups and downs of 2020 while looking toward current year - The Daily Breeze
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