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PROGNOSIS * USA - Ports' leaders see slow recovery
Recession and competition from rivals dampen expected volume in Long Beach and L.A.
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San Pedro,CAL,USA -The Contra Costa Times, by Kristopher Hanson -27 Feb 2009: -- Leaders of Southern California's shipping industry gathered Friday against a bleak economic backdrop of sinking profits, sliding trade volumes and stagnant job growth to discuss the future of international trade in the region... And judging by their comments, the outlook isn't particularly rosy - at least in the near-term... Hammered by the global recession and diversion of cargo to competing seaports, the ports of Long Beach and Los Angeles experienced a nearly 10percent drop in total trade in 2008 - the sharpest decline in more than two decades of record-keeping... And the trend has accelerated this year, mirroring drops at most major U.S. seaports as global trade grinds to a halt... At the same time, a handful of competing ports in Canada and the U.S. - some newly expanded - have been successful in siphoning trade that was previously sent through Long Beach and L.A. on its way to the U.S. interior, or anywhere east of the Rockies... In an effort to stem declines, port authorities in Long Beach and Los Angeles are fighting back by adopting rebate programs offering shippers up to $40 in savings for each container imported or exported by rail... And they're preparing a marketing campaign designed to counter claims by competing seaports - many inaccurate - that imply local ports are charging container fees on cargo moved by rail... The ports' (LA & LB) container fees are restricted to cargo moved by truck...
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