Here are five reasons why the Port of Los Angeles should be playing a major role in your APAC supply chain strategy.
Strategically located in San Pedro Bay, just 20 miles south of downtown Los Angeles, the Port of Los Angeles is a major gateway for US-Asia-Pacific (APAC) trade. Recognized for record-setting cargo operations, environmental stewardship, community partnership, progressive security measures, historical landmarks, and the LA Waterfront, the port encompasses 7,500 acres of land and water along 43 miles of waterfront.
Major gateways for US-Asia-Pacific (APAC) trade, the San Pedro Bay Ports of Los Angeles and Long Beach in California handled about $284 billion worth of goods in 2017, with $145 billion (or more than half) of that trade involving China. Out of the $145 billion, $134 billion worth was goods imported from China, and $11 billion was goods exported from the U.S. to China, according to China Daily.
The top imports from China at the Port of Los Angeles are furniture, clothing apparel, electronics, and footwear, while the top U.S. exports are waste paper, pet feed, scrap metal, and fabrics. “The Port of Los Angeles/Long Beach is the key entry port for the transpacific trade and remains the largest U.S. port in handled TEUs,” says Trond Prestroenning, Head of Ocean Freight, Americas, for DB Schenker.
“Cargo flows through the port not only to the local West Coast market but also to the Midwest and the East Coast,” Prestroenning continues. “Because of this, it’s natural for any shipper to include the port as a key element in its supply chain strategy and understand the port’s capacity, features, and constraints. As one of the port’s largest users, DB Schenker can provide shippers with this knowledge and expertise.”
5 Reasons to Consider the Port of Los Angeles
Here are five more reasons why shippers should incorporate the Port of Los Angeles into their APAC supply chain strategies:
- It’s been the number one container port since 2000. The Port of Los Angeles is one of the world’s busiest seaports and leading gateway for international trade in North America and has been ranked as the number one container port in the United States each year since 2000. In 2018, the Port moved more cargo than in any time in its 111-year history—9.5 million Twenty-Foot Equivalent Units (TEUs)—the most cargo moved annually by a Western Hemisphere port.
- The port features a wide variety of terminals and facilities. Handling diverse commodities from avocados to zinc, the Port of Los Angeles features both passenger and cargo terminals, including cruise, container, automobile, breakbulk, dry and liquid bulk, and warehouse facilities that manage billions of dollars’ worth of cargo each year.
- If you need intermodal rail services, this is your port. The Ports of Los Angeles and Long Beach offer importers the double advantage of being the second-largest US population center and having the most extensive intermodal rail services from the West Coast to large distribution hubs including Chicago, Dallas, Columbus, Ohio, the Northeast, and Atlanta for high-value, time-sensitive merchandise. “Southern California is also the transloading capital of the country, with more than 1.5 billion square feet of industrial real estate,” JOC points out, adding that carriers capitalize on these logistics advantages by discharging at least 80 percent of each vessel in Los Angeles-Long Beach. “Some vessels do 100 percent discharge and reload and return directly to Asia.”
- It’s investing in technology. Currently in the midst of a 10-year, $2.6 billion infrastructure investment program aimed at raising the bar for cargo efficiency, the Port is also focused on new technologies to enhance digital information flow throughout the supply chain. A trailblazer in record-setting cargo operations, the Port of Los Angeles leads the way in supply chain efficiency and maritime shipping digitization with the launch of Port Optimizer™, a first-of-its-kind information portal developed in collaboration with GE Transportation.
- The port is known for environmental consciousness and sustainability. The Port of Los Angeles is also known for its environmental initiatives and remains committed to managing resources and conducting developments and operations in both an environmentally and fiscally responsible manner. The LA Waterfront is a tourism, recreation, and retail destination of more than 400 acres of waterfront property. The Port has invested more than $600 million in public access enhancement and waterfront development projects to date—with plans to invest another $400 million over the next decade—and remains committed to delivering projects that provide additional open space and encourage public access, while utilizing a sustainable approach to design, planning, and urban architecture.
Making Your Move
A major economic driver at the local, regional, and national levels, the port is a key generator of jobs, commerce, and tourism in Southern California. In California alone, nearly 1 million jobs are related to trade through the Port of Los Angeles.
By aligning with a logistics provider that has decades of experience in the Los Angeles region, shippers can take advantage of modern, automated warehouse facilities that are strategically positioned to act as centralized control towers for companies trading with APAC partners.
DB Schenker not only enables easy freight clearance and supports a wide array of industries, but we can also introduce your firm to a broad range of diverse business opportunities and tactical strategies. These and other services will help you effectively leverage this key gateway to create a successful APAC import/export plan.
9.5 million TEUs handled in 2018
7,500 acres (3,200 water, 4,300 land)
43 miles of waterfront
-53’ main channel water depth
26 passenger and cargo terminals
15 marinas with 3,736 recreational vessel slips and dry docks
86 ship-to-shore container cranes