The West Coast port, historically speaking, has always been the highest volume port in the continental US. The reason why is quite self explanatory……. Asia! Yes, Asia. Asia, historically speaking, always has the most production facilities in the entire world. It’s biggest importer, you guessed it, the United States of America.
As of late, however, there has been a slight decline in inbounds from Asia. The Long Beach Island ports have seen a decrease in 15% of its volumes while Oakland has decreased by nearly 5% in September.
The reason is primarily due to Hanjin Shipping Co.’s sudden bankruptcy. Hanjin Shipping Co was said to be Koreas largest shipping carrier. At one point Hanjin Shipping Co was managing 100 million tons of cargo per year. Hanjin was known globally as the “7th Largest Container Carrier”. The reason why Hanjin could not become sustainable with its profits is due to its lack of man power and adherence to its competition. This bankruptcy could cause a major ripple affect. Many consumer goods companies are forced into using different carriers and prices could subsequently rise. Oil prices can be on the verge of rising as well with the big hole in demand.