Despite the conflict between US and China concerning tariffs, the Port of Oakland keeps on having a steady cargo volume growth for a third year straight. However, it is of a great interest whether the steady flow can last in the future.
The Port of Oakland addressed that its import volume is up 2.7% in comparison to 2017 which was a record year for containerized cargo. Also, imports from China have risen over 5% in 2018 despite the tariff conflict. On the contrary, Oakland exports to China have declined over 33% in 2018. The reduction was due to new, strict Chinese restrictions on wastepaper shipments, an Oakland export staple.
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However, the question whether this continuous steadiness will last, was a hot topic supply chain experts. The experts that gathered, discussed the port’s dynamic commenting that although the cargo volume growth is at its peak, it could easily drop by January.
As Oakland’s China exports reduce, other Asian nations being benefited. Namely, export shipments to Vietnam soared 96% in September while exports to Taiwan increased at 37%.
Task Force members in Oakland highlighted that:
- Warehouses are filling up as U.S. retailers import merchandise from Asia;
- Shipping lines have put on more than 30 extra voyages to regularly scheduled Transpacific services to transmit larger container volumes;
- Ports up and down the West Coast have reported unprecedented cargo volume growth since mid-summer.
According to the press release from the Port, reasons for the cargo spike may differ. Firstly, it may be the result of a steady US economy. Moreover, it is also high season when importers order heavily for holiday merchandising.
A third reason is frontloading. Experts suggested that shippers fasten their orders to beat pressure of new tariffs on Chinese imports.
John Driscoll, Port of Oakland Maritime Director, highlighted that the reason for the growth concerning imports is still something of a mystery. He supported the idea of frontloading being the reason of the steady and strong growth.
Finally, many were the experts that predicted the reduction of cargo volume imports during January when the new US imposed tariffs take effect. Yet, others stated that until then import volume should keep increasing.
