Los Angeles cargo volume to drop 20-30pc in first quarter: report

THE US Port of Los Angeles cargo is expected to fall 20 to 30 per cent in the first quarter of 2009 based on feedback from customers, said the Cunningham Report which specialises in transport and maritime affairs.
It noted that business at one Los Angeles container terminal had fallen by 50 per cent compared to last year.
The bleak forecast follows recent announcements by Maersk Line, the port's greatest revenue earner, that it will scrap one of its services to Los Angeles due to a new vessel-sharing agreement with CMA-CGM that comes into effect in May. This is a blow for the port given that nearly its seven container terminals reportedly generate 80 per cent of its income.
As a result of the weak US economy, the report said the port will reduce spending in the current fiscal year by more than US$20.5 million.