By Ronald D. White, Los Angeles Times Staff Writer|May 12, 2008
At a time when the struggling U.S. economy needs the biggest boost it can get from booming exports, companies and agricultural producers with American goods bound for overseas can't find enough empty cargo containers and have to wait weeks to get space on ships headed to Asia.
Only a few years ago, the trade bottleneck was the reverse. At U.S. harbors -- particularly the nation's biggest container complex at the twin ports of Los Angeles and Long Beach -- there were too few dockworkers to handle surging imports. Inland rail capacity to the rest of the U.S. was similarly strained.
Now, because of the container problem, U.S. exporters find themselves unable to take full advantage of the competitive edge of a weak U.S. dollar.
"We could export a good 20% more in agricultural products from this country if there was the capacity to handle it," said Peter Friedmann, general counsel for the Washington-based Agriculture Transportation Coalition, a lobbying group formed to help growers become more competitive internationally.
"People talk about how important it is to reduce the trade deficit. Well, here is one way to do it, and the opportunity is slipping away."
The container problem is being most acutely felt in the Midwest, said Friedmann and other experts. Southern California isn't suffering as much because of its ports' role as a key gateway to Asia.
Los Angeles and Long Beach moved 15.7 million containers in 2007, nearly three times as much as the No. 3 port, New York/New Jersey, and attracted many more empty containers for shipping back to Asia than any other port complex.
This year, imports through March were down 7% at Los Angeles and 11% at Long Beach, while exports were up 21% and 26%, respectively -- and the numbers of empty containers were down 28% and 25%.
"Last year, I could have called for a ship and had it by next week. Now it takes up to six weeks to book one. There just isn't enough room on the ships," said Howard Wallace, president of the Los Angeles Harbor grain terminal, where exports are up 150% this year.
Friedmann said he knew of a California dairy that could have sold 600 more containers of goods overseas, if it had been able to find cargo boxes. A beef and poultry producer in the Midwest, Friedmann said, missed out on at least $10 million in sales overseas for the same reason.
