The Port of Oakland registered a year-on-year decline of 3% in container volumes during January by handling 193,205 TEU. During the same month, however, import cargo volumes increased, following a record-setting 2021 performance.
Particularly, the US port handled 83,860 TEU of full import containers in January, which translates to an 8.3% increase compared to the same month of the previous year.
"As imports rise nationwide, Oakland continues to play a key role in strengthening the global supply chain," stated Port of Oakland maritime director Bryan Brandes, who went on to add that the port is also working closely with federal, state and industry partners to boost exports that include agricultural commodities as well.
At the same time, a total of 69 boxships tied up at Oakland, which reflects a 14% decrease year-on-year in the number of vessel calls.
Port officials attributed this decline to the fact that shipping lines are seeking economies of scale by loading more containers on fewer ships, as well as to the sailing schedule delays at Southern California ports that force some ships to bypass Oakland.
The reduced ship visits resulted in a 10.8% drop in January full export volumes, which totalled 61,704 TEU. The port said Oakland exporters couldn’t find enough vessel space to load their containers for overseas destinations.
Port executives believe that the following measures could led in the restoration of the export volume growth before the end of the year:
- The opening of a temporary pop-up container yard on 1 March to help export shipments and relieve supply chain congestion.
- Partnership with the United States Department of Agriculture (USDA) that will provide incentives to exporters to maximise container yard use.
- Oakland anticipates more vessel space in 2022 to ship goods abroad.
- The port and federal government are working to provide enough containers to carry the load.
"We’re historically the leading gateway to Asia for US exports, especially agricultural exports," stated Brandes. "It’s up to us to make sure that the gateway is wide open and that’s what we’ll be focused on throughout 2022," he added.
The USDA will provide cash incentives to exporters and truckers using the service, and according to the port, hundreds have expressed interest.
Demand for US farm exports is at an all-time high, especially in Asia, according to a statement. Hence, a turnaround in the export business is possible by the time harvests are ready to ship this fall.
"The overseas market is waiting for us," said Brandes. "With the interest, I see from the export community and support from the US government, I see no reason why we can’t meet the demand and restore this business before year-end."
