by Bill McBride on 3/13/2017 03:01:00 PM
Note: I mentioned earlier that the timing of the Chinese New Year increased the trade deficit with China in January. In February, the deficit with China will likely decline.
From the Port of Long Beach: Cargo Declines During Lunar New Year
Reduced economic activity in Asia associated with the Lunar New Year contributed to lower February container volumes at the Port of Long Beach.
Overall, traffic totaled 498,311 twenty-foot equivalent units (TEUs), a decline of 11.2 percent compared to the same month last year, the highest-volume February in Port history. Cargo in February 2016 ballooned 35.9 percent year-over-year.
The Lunar New Year holiday began Jan. 28, almost two weeks earlier than in 2016. The Lunar New Year typically results in slower trade since businesses in China — the world’s No. 2 economy and the Port’s primary trading partner — close for a week or more to observe the holiday. The impact on the Port is seen two weeks afterwards, accounting for the time it takes vessels to cross the Pacific.