One big reason for the increase is that the Port of Los Angeles now has the capacity to accept mega-ships carrying 8,000 containers, almost double the capacity on older ships. Volume should be up 5-6 percent, while the Port of Long Beach, which can also handle the really big ships, is looking at a 6-10 percent jump. As reported by California Apparel News, more megaships mean more capacity and that will probably result in lower rates for shipping goods from overseas factories. It's a different story once goods are off the docks. Rail capacity has been stretched because of staffing shortages and older equipment. That's creating capacity problems and higher rates.



Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.