GLAOCIE Port Update August 2024

Port Highlights

• In 2024, shipping container spot rates per 40-foot container from China to Los Angeles were up 190% from that of August 2023.
• The spot rates, a one-time quote provided by carriers to move freight from one port to another, doubled in the span of 13 weeks from $3,371 in early May to $6,740 in early August.
• These rates increased due to various factors, including geopolitical tensions in the Red Sea, drought conditions at the Panama Canal, and labor concerns on the East Coast.
• Consequently, Southern California occupiers have expressed concerns about the potential impact on their bottom line.
• While rates increased dramatically, the San Pedro Bay Port Complex's shipping volume increased 14.3% year-over-year in H1 2024.
• This increased port activity directly translated to a surge in the region’s industrial market, with Q2 leasing activity experiencing 21% growth year-over-year.
• Occupiers remain committed to the region given the Port Complex’s ability to meet the demands and expectations of a vast consumer population.