Port traffic in 2011: Strong in spots, weak in spots

A generally positive picture, with overall container traffic up 1.4 percent at the Port of L.A. and down 3.2 percent at the Port of Long Beach. Break apart those bottom line figures and you'll notice a 14.5 percent jump in exports out of L.A. Long Beach had a tougher time, the result of losing California United Terminals, which accounted for one-tenth of the container traffic. (The port's remaining six container terminals posted a volume gain of 8.1 percent.) The economy, of course, ultimately determines how busy these ports get (retailers are feeling a bit more bullish, which means a pickup in imports), but the other imponderable is stepped-up competition from the East Coast ports. I've been hearing this same tune for years, but maybe it's finally happening. From the Newark Star-Ledger:

The two Southern California ports have long been ranked at the top of the nation's busiest ports. But increasingly, companies are looking to the East Coast in order to diversify their cargo logistics with televisions, sneakers, clothing and other goods headed to this part of the country. "It used to be, everything (from Asia) landed on the West Coast and got here by rail," said Michael Morrow, vice president of the Judge Organization, a trucking and warehousing operation that unloads and loads cargo at Port Newark. Now, "faster transit through the Panama Canal made it competitive for East Coast direct service."

In the end it still comes down to cost - and for the moment it's still cheaper for shippers coming from Asia to use L.A. or Long Beach rather than NY and New Jersey.

It will also depend on how quickly retailers need their cargo. It can take about 12 days to travel at 20 knots from China to the West Coast, compared to 22 days at the same speed to the East Coast, according to a February 2011 report by Norbridge, a transportation consulting firm.