A story in the Los Angeles Times today indicates that after a drastic decline in the number of shipping containers brought into the Ports of Long Beach and Los Angeles in 2009, economists and trade experts are predicting that upcoming statistics will show extreme growth over the last few months.
The article indicates that trade at the two local ports – which, combined, are the busiest in the nation – could soon see a return to the market dominance they enjoyed in the 2000’s (until 2009).
From Times reporter Ronald D. White:
Final results for the two local ports won’t be available until next week, but economists who track volume at the nation’s busiest ports each month called the new report the strongest sign yet that the bottom-dwelling days are over.
White indicates that the increase may be due to the effects of the economic stimulus package, as well as retailers stocking their shelves after a bare year.
That’s good news for the ports, but it doesn’t mean that they’re out of the woods yet.
White’s assertion that the ports “appear to have ended their long decline and are poised for a strong recovery” may be a bit optimistic. While the upcoming report promises to show growth over the last few months, the figures will undoubtedly still pale in comparison to the booming years of trade between 2006-08.
So while improvement may be on the horizon, a full recovery is likely not. White even concedes in the article that no one is quite sure whether the improvements will continue when stimulus funding runs out, and states that consumers are still reluctant to open their wallets. He also notes that experts predict 3% growth over the next six months, and while that is certainly terra firma compared to a tumultuous 2009, it does little to make up the 17% cargo drop suffered through last year.
Still, any good news is great news at the present moment.