Cargo that has spent more than nine days on ships, referred to as dwell time in the shipping industry, fell roughly 20% in the first week of November, according to data from the ports of Los Angeles and Long Beach. The dwell time declines came after ocean carriers faced fines starting Nov. 1 for containers that sat at sea for nine days or more. Cargo spending less time on ships is critical to the global economy, which depends on the efficient movement of goods.
Moving goods efficiently also is important to the Los Angeles industrial market, which has long benefited from the growth of the ports. The San Pedro and Long Beach industrial markets feature vacancy rates of less than 2.2%, showing the demand for industrial real estate there, according to CoStar data. In the San Pedro market serving the Port of Los Angeles, rents have jumped 9.3% in the past year, the greatest gain in more than a decade.
Cargo wait times skyrocketed in mid-2020 as the ports handled a record-breaking number of containers after the pandemic threw the global economy off-balance. Prior to the pandemic, containers on ships sat for less than four days on average, according to a Port of Los Angeles statement.
The ports of Los Angeles and Long Beach process 40% off the nation's container imports, making them vital to national and global trade.