Port Los Angeles Climbs To Top Spot in US Trade Rankings
For the second consecutive month, Port Los Angeles reclaimed its position as the nation’s leading port, solidifying its dominance in the world of trade. This marks the third time the California port came out on top in the last four months.
Opposition to this reign came primarily from Port Laredo. For 20 months prior to July 2023, Port Laredo consistently ranked first. Prior to that winning streak, Port Los Angeles dominated rankings for the vast majority of the previous two decades.
There were only several notable exceptions to Los Angeles’ long reign. The pandemics formed a unique set of circumstances where Port Laredo and then JFK International shared the top spot while, later, Chicago’s’ O’Hare International Race to Number One tightened competition in late 2021.
The reasons behind Port Los Angeles’ recent resurgence are debated. One theory suggests importers, anticipating a possible presidential change and corresponding alteration to tariffs on goods from China, began preemptively increasing their inventory in the summer months. Another contributing factor is likely the typical increase in trade the holiday season brings.
Whatever the contributing factors, the $30.98 billion recorded by Port Los Angeles in October marked a new U.S. trade record, surpassing its own record-breaking figures from the previous month.
Year-to-date, Port Laredo maintains its lead, boasting $284.91 billion in two-way trade compared to Port Los Angeles’ $276.53 billion. While this signifying a difference of just $8.38 billion, it is significantly lower than the $26.18 billion margin seen during the same period in 2023. This trend suggests that Port Laredo could potentially clinch the top spot for annual rankings for the first time ever.
U.S. Trade Performance Stalwart:
The U.S., overall, has seen a 3.69% increase in trade through October, totaling $4.43 trillion. This emerging strength follows a dip from the record-breaking first-ten-months period in 2022.
Year-to-date export trends are up 2.28%, while imports have benefitted from a 4.95% increase.
The ongoing trade deficit with the world reached $984.29 billion, demonstrating a rise from last year, yet still lagging behind the record pace of 2022, which saw the deficit reach $1.01 trillion.
Mexico retains its position as the U.S.’s top trading partner, closely followed by Canada and China.
Looking closer at what drives this trade, the U.S. remains a leader in the export of civilian aircraft parts and the export of oil and refined petroleum products.
The nation is a large importer of passenger vehicles, oil, and computer systems.
While Port Laredo exceeded expectations for the 2023 year, both it and Port Los Angeles are poised to set new records in 2024. Similarly, O’Hare International Airport, ranked third nationally, and the Port Huron Blue Water Bridge, firmly in ninth place, are also on track for an impressive 2024.
Rounding out the top 10 are JFK Airport which, while off its record-setting pace from 2022, remains a major player. The full list of top ports in order beyond the top three includes the Port of Houston, last year’s top performer, New York’s Port of Newark,rollercoaster rankings for Detroit’s Ambassador Bridge, Los Angeles International Airport in eighth place, and Savannah’s port, tenth.
Altogether, the top 10 U.S ports accounted for a substantial 41.24% of all U.S. trade currently. The remaining 88.63% emanates from the commerce conducted through the remaining 827 ports actively handling trade.
What factors contributed to the Port of Los Angeles’ recent resurgence in trade?
## Port Los Angeles: Back on Top, But The Race Is On!
**Host:** Welcome back to the show. Today we’re joined by industry expert, Alex Reed, to discuss the exciting news coming out of the Port of Los Angeles. Alex Reed, congratulations are in order for LA reclaiming the top spot in US trade rankings.
**Alex Reed:** Thanks for having me! It’s certainly a dynamic time for the port industry, and LA’s recent surge is definitely noteworthy.
**Host:** Absolutely! After 20 months of Port Laredo holding the lead, Los Angeles has bounced back convincingly, even setting a new US trade record in October. Can you shed some light on what’s behind this resurgence?
**Alex Reed:** There are a few factors at play. Some analysts believe importers, anticipating potential changes in tariffs on Chinese goods depending on the outcome of the upcoming election, started stockpiling inventory earlier this year. Of course, the holiday season also brings a natural increase in trade volume.
**Host:** Interesting point about the elections. It sounds like a mix of political maneuverings and seasonal trends are contributing to this.
**Alex Reed:** Precisely. However, it’s important to remember that Port Laredo is still ahead in the year-to-date figures.
**Host:** So, the competition is far from over, you’re saying?
**Alex Reed:** Exactly. While Los Angeles has a strong finish to the year, Laredo’s lead is still significant. This annual race is closer than it’s been in years, and it will be fascinating to see who emerges victorious.
**Host:** Well said! This back-and-forth certainly adds a layer of intrigue to the world of international trade. Any predictions on who will ultimately take home the crown?
**Alex Reed:** With only a few months left in the year, it’s anyone’s game. Both ports are operating at peak efficiency and clearly hold immense strategic importance.
**Host:** A thrilling race indeed! Alex Reed, thanks for sharing your insights with us.
**Alex Reed:** My pleasure. It’s always a pleasure to discuss the vital role these ports play in our economy.
**Host:** And for our viewers, stay tuned for more updates on this crucial story.
