Los Angeles port hit hard by Covid-19

Los Angeles

THE Port of Los Angeles, the biggest in the United States, has been significantly impacted by the novel coronavirus outbreak and is forecasting a 15 to 17 per cent drop in activity in the first quarter of the year, officials said Wednesday.

Eugene Seroka, the executive director of the port, which mainly handles cargo to and from China, told the Los Angeles City Council that the facility experienced 20 to 25 per cent less business last month than in February 2019.

He said some 40 vessels that had been scheduled to arrive at the port in April have had their arrivals cancelled due to the outbreak of the virus. "We have advised the marketplace that we expect first quarter container volume to be down 15 to 17 per cent," he said.

He warned that the drop in business would hit workers and the wider community. "In summation, for our port community, less cargo means fewer jobs," he said, adding that some dock workers have been asked to stay home because there is not enough work.

"It is our estimation that the effects of the coronavirus and the downturn in trade will cost us tens of billions of dollars in the industry when all is said and done," he warned.

"The issue today is that empty containers, perishable commodities and agricultural products are stacking up at our ports because of those vessel sailing cancellations," he added.

"That will cause the American farmer further harm on top of the trade tariffs," he said, referring to the US-China trade war.

Phillip Sanfield, a spokesman for the port, told AFP that the drop in activity was similar to the decline experienced during the 2009 recession. He said more than half the port's business is with China, which mainly exports furniture, auto parts, apparel, footwear and electronics to the US.

Among the goods the US sends to China are recycled products, raw materials such as cotton, scrap metal, and some agricultural goods including soybeans and beef.

The American Association of Port Authorities said in a statement last week that cargo volume at many US ports in the first quarter of 2020 may be down by 20 per cent or more from 2019 because of the spreading virus. AFP