10 Oct, 2009
Why Is Export Trade Better in Oakland / San Francisco Than L.A.?
The recently released figures about import and export in California show lower trading this year than 2008. But one mystery remains…why is Northern California doing better at their ports and air cargo business than ports of L.A. and Long Beach?
While one opinion is that the north is rebounding faster, another possibility is that the farm crops and central valley food stuffs shipped out of the northern port cities and centers and are in greater demand than other items. California’s export trade was the lowest for August since 2005–and 22.3 percent below the $12.9 billion in goods the state shipped abroad in August of 2008. California’s manufactured exports in August plummeted by 24.5 percent from last August, while agricultural goods and other non-manufactured exports were down 23.5 percent.
The number of loaded shipping containers leaving the ports of Los Angeles and Long Beach in August fell by 14.5 percent from last year while containers leaving the Port of Oakland increased by 12.8 percent over the same period.
The story was similar at the state’s two principal international airports. Export tonnage in August slipped by 3.4 percent at Los Angeles International Airport, but was up by 5.2 percent at San Francisco International Airport.
The value of U.S. exports shipped through customs in Los Angeles showed greater decline than in San Francisco and San Diego. The value of U.S. exports shipped through the Los Angeles Customs District in August was 26.9 percent less than August 2008.
Exports from the San Francisco Customs District, meanwhile, were down by 15.2 percent, and exports through the San Diego Customs District were off by 14.1 percent. Since California businesses account for as much as two-thirds of the value of all exports leaving the U.S. through a California gateway, models suggest that economic recovery may be further under way in Northern California and in San Diego than in the Los Angeles.
For the first eight months of 2009, California exports totaled $76.1, a 23.1 percent decrease from the $98.9 billion for the first eight months of 2008.
Imports were equally bleak. UC Center Sacramento found that $29.3 billion in foreign goods entered the country through California in August, a decline of 24.1 percent from the $38.5 billion reported in August 2008.