This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
The US–China trade war dominated the headlines in 2019. For the Port of Long Beach, where 70 percent of our business is with China, we ended the year 6 percentage points behind our record year in 2018, making 2019 our second-best year ever.
Looking ahead, 2020 will apparently begin the way 2019 ended, with the hope that the trade differences between the United States and China will be resolved.
Our customers want their cargo moved efficiently, quickly, and at a good cost. That’s why we have the biggest infrastructure program of any seaport in the US and are constantly investing our revenues into our facilities. Our peerless terminals, roads, and rail network will ensure we stay ahead of the competition, not only in the near term, but in the decades ahead.
Where we can ease the challenges our customers face, we do, with initiatives like our Ocean Common Carrier Incentive Program. The program rewards ocean carriers for every additional loaded container moved through the port compared to the prior year. While ocean carriers prepare themselves for low-sulfur fuel regulations, the Port of Long Beach is ready for visits from the newest, cleanest vessels.
We have all been tested by the last few years. It’s important, however, to look at the situation through the long lens of history. Ten years ago, in the depths of the Great Recession, we moved 5 million TEU. It took us until 2017 to reach our pre-recession cargo levels, but in 2018, our total broke 8 million TEU for the first time, the top result of our 108-year history.
If we all hold fast to the principles that got us here and continue to focus on efficiently moving our growing volumes, we will get to the bright future.