The San Pedro ports of Long Beach and Los Angeles represent the largest gateway for foreign trade in the United States, accounting for nearly 40% of the nation’s total. But “the recession” and recent political and economic upheaval has dented both port numbers and optimism for recovery. So this month when Congress inked the Free Trade Agreements for Columbia, South Korea and Panama, it gave the collective San Pedro ports community something more to celebrate in their Centennial Year. By George Lauriat, AJOT This year the San Pedro Bay ports of Long Beach and Los Angeles celebrated their respective Centennial anniversaries. What is probably more noteworthy, than the age of the two ports co-joined by the Bay, is that collectively 40% of the nation’s foreign trade flows through their port facilities, easily making this region the most important freight gateway to the United States. Last year, both ports showed rebound numbers after three years of recession. In 2010, the Port of Long Beach handled 6.26 million teu while the Port of Los Angeles tallied 7.8 million teus. The combined tally of over 14 million teus puts the San Pedro Bay ports in elite company worldwide and helps explain the deep impact that the ports have on every aspect of the region from truck traffic and air quality to pay checks. For example, the Port of LA handles around $89 billion in Californian trade and a staggering $223 billion in US trade. Looking at neighboring Long Beach, the port accounts for $18 billion in exports and supports $32 billion in the distribution of goods throughout the US. No matter how it is added up, the San Pedro ports represent the largest concentration of port related activities in the US, so when things aren’t going good there is an economic problem… and when things are going good there are other heightened environmental (traffic and associated pollutions) and social problems. Even with the recovery in 2010, the throughput numbers have to be put in perspective. Back in 2006, before the recession took hold, the Port of LA posted 8.5 million teus while the Port of Long Beach added 7.8 million. It’s quite possible that had both ports continued to grow at rates similar to those in the immediate years before the 2007 recession hit, that both would be posting numbers in excess of 10 million teus today. The economic turmoil of the second half, starting with the Federal government’s tardiness in raising the debt ceiling, Arab Spring, Eurozone meltdowns and now extending to the weakness of China’s domestic economic problems, have put a damper on trade, and it has showed on the pier. In August comparisons of 2011 to 2010 (latest figures) the Port of Long Beach’s throughput was off 12% (535,929 teus -611,002 teus), although the figures for the FY (fiscal year) are still up 7.7% (5.77 million - 5.36 million teus). The Port of Los Angeles’ September numbers show similar trends. For the FY the port is down a little over 4% (2.21 million teus to 2.12 million teus) while the September monthly tally is down .84% (705,623 teus-711,613 teus). These numbers and others had some speculating (Wall Street Journal among them) that the seasonal “peak season” may be a thing of the past and that the roller coaster ride of reduced retail inventories may lead to another lapse into recessionary type numbers for the ports. However, there has been some goods news in October that might indicate improvement not only in the Port of LA & LB but for the nation’s ports. According to the Global Port Tracker report produced by the NRF (National Retail Federation) import cargo volume at the nation’s major retail container ports is expected to increase 2.6% in October over the same month last year and should reach its highest level of the year as retailers stock up for the holiday season. NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said, “After a summer of trying to compare apples to oranges, retail cargo is back to normal.” Adding, “October is the historic peak of the shipping cycle each year, and retailers are bringing