By: Denny Cristales
Editorial Assistant
The Port of Long Beach’s 13th Annual Pulse of the Ports forecast event on Wednesday at the Long Beach Convention Center revealed a projected increase in international trade in 2017 and a continued focus on infrastructure projects in spite of domestic economic challenges.
The Pulse of the Ports featured a panel of experts who provided information on trends in global shipping and its impact on the Port of Long Beach.
Hundreds of people attended and watched a live webcast of the event.
Mario Moreno, a senior economist with IHS Maritime & Trade and who presented about U.S.-Asia container trade, said imports from Asia will increase by nearly 7 percent this year. He also said that U.S. container exports to Asia will rise 1.3 percent off the heels of improving demand, and that the overall U.S. economy will increase an estimated 2.3 percent.
John Zarrella, a sales manager with Preferred Freezer Services, said there is an issue of product weight— an overweight container in California can be loaded with about 54,000 pounds of gross-product weight, while Hong Kong, for example, can accept products with over 60,000 pounds of weight. The shortage could be frustrating for the customer overseas and could drive business to competitive countries, Zarrella said. He added there is a need to also address port-labor issues.
In spite of the problems he presented, he projected an increase in international business in 2017.
Ken O’Brien, chief operating officer with Gemimi Shippers Group, noted that the U.S.’s trade and regulatory policies are in a state of change. This change and pending trading issues create a source of uncertainty for ports and traders, he said.
“With the state of shipping under so much change, it’s really up to the shippers to become informed customers,” O’Brien said.
Other panelists included Steve Rothberg with Mercator International, LLC, Anthony B. Hatch with ABH Consulting and Alex Cherin with the California Trucking Association.
Duane Kenagy, interim chief executive officer of the Port of Long Beach, admitted there were plenty of challenges over the past year for the port, but he added that there were successes, as well.
“Particularly in the area of infrastructure,” he said during the event. “We’re making great progress on the Gerald Desmond Bridge. You can see those towers out there; they’ll top-out later this year at about 515 feet. They’ll be the tallest points in Long Beach and be an iconic change to the landscape in our beautiful downtown for generations to come.”
Kenagy added that the first few lanes of the bridge are projected to open up in 2018.
He said the port had also begun operations on a new middle harbor terminal at Pier E— which is on Phase 2 of its project.
“We know the construction has caused some inconvenience for some of you,” Kenagy said. “Sometimes the traffic gets a little unbearable even for me. We do appreciate your patience, and we’re all looking forward to the completion of some of these projects.”
The port has proposed an on-dock rail-support facility at Pier B. Currently, a little more than 25 percent of the port’s cargo is handled with on-dock rail, he said. The port’s goal is to make that number 50 percent.
He concluded by saying that the port is still taking the appropriate steps toward operating in an environmentally-friendly way, specifically with the continued implementation of the Clean Air Action Plan.
To watch the event in its entirety, visit polb.com/pulseports.
