Port Update - 2023 Overview and 2024 Forecast

Despite prolonged labor negotiations and port congestion throughout 2023, port activity on the West Coast ended the year on a positive note.

• Locally, total TEUs moved at the San Pedro Bay ports saw five consecutive months of year-over-year growth.
• Disruption from the Suez and Panama Canals will likely drive more U.S.-bound cargo ships from Asia to West Coast ports.
• The West Coast also benefits from relatively cheaper shipping container costs with roughly a 40% discount shipping to the West Coast vs. the East Coast.
• Given forthcoming East Coast labor agreements expiring in 2024, local and West Coast port activity is expected to increase.