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The port of Los Angeles, the largest in the United States, has been significantly impacted by the outbreak of the new coronavirus and projected on Wednesday a drop in its business of at least 15% in the first quarter of this year.
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Eugene Seroka – executive director of this terminal that works mainly with cargo coming from and destined for China – told the city’s legislative council that only in February saw a 20% to 25% drop compared to the same month last year .
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He specified for example that 40 ships that were scheduled to arrive at the port until April were canceled.
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“We have warned the market that we expect the first quarter container volume to fall between 15 and 17 percent“He added. “We expect the volume of containers in the first quarter to fall between 15% and 17%.”
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“Less load means fewer jobs,” he added, indicating that some workers were already put on leave.
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Seroka warned that the effects of the new coronavirus, which killed more than 3,200 people in the world, will represent losses for “tens of billions of dollars to the industry“
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And he stressed that the main problem today is empty containers, perishable and agricultural products “that are accumulating in our ports due to ship cancellations.”
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“This will cause the farmer greater damage, which will also add to the tariffs.”Of the trade war of China and the United States.
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Phillip Sanfield, a spokesman for the port, told AFP that the drop in activity was similar to that experienced during the 2009 recession.
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More than half of the port’s business is carried out with China, where furniture, auto parts, clothing, footwear and electronic products are imported.
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Among the goods that the United States in turn sends to China include recycled products, raw materials such as cotton, scrap and some agricultural products such as soybeans and beef.
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The US Association of Port Authorities said in a statement last week that the volume of cargo in many ports in the country during the first quarter may drop by 20% or more compared to 2019 due to the spread of the virus.
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“Things will eventually recover, and in fact we are hearing news about factories that are working again in China, and ports that are accelerating to move the cargo”Said Chris Connor, president and CEO of the Association.
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“At the same time, supply chain managers around the world are working tirelessly to keep the cargo moving and ensure that the goods we need are available when and where we need them.”
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The outbreak of the new coronavirus, or COVID-19, which has affected more than 90,000 people in the world, has hit global markets strongly.
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