Port of Oakland beef export volume up 25 percent in 2021

Port of Oakland import cargo volume edged up last month while the number of vessel services has been reduced. According to data released today, the Port received the equivalent of 97,850 20-foot import containers in August. That was up 1.6 percent from August 2020, according to the company’s release.

The Port contrasted rising imports with a 40 percent drop in the number of container ships calling at Oakland. According to the Port, 68 ships arrived in August, compared to 113 a year ago.

The Port attributed declining vessel calls to ship diversions earlier this year. Several carriers rerouted vessels to avoid congestion at West Coast ports that resulted from surging import volume. According to the Port, Oakland has cleared up crowding at its vessel berths and container yards.

The Port said exports shipped from Oakland declined 5.8 percent in August. For the full year through August, imports were up 14 percent and exports down 1.8 percent, the Port added.

According to the Port, import volume is expected to grow in the coming months. That’s because the shipping industry is in the midst of peak season. It’s the time of year when U.S. retailers bolster inventories for upcoming holiday sales. Goods imported primarily from Asian manufacturers fill container ships and West Coast marine terminals.

The Port said imports have accounted for 55 percent of its laden container volume in 2021. Exports make up 45 percent of the cargo mix, the Port said. Oakland has traditionally reported a near 50-50 split between imports and exports. The swing toward greater import volume reflects a year-long surge in U.S. consumer spending, the Port explained.

Proof of cold chain strategy, even in a year beset by shipping woes

On another side that the Port of Oakland beef exports – almost exclusively to Asia – increased 25 percent this year between January and July. The Port called the surge extraordinary in a year when shipping disruptions have hobbled global supply chains.

“Demand for high-qualify U.S. meat products is off the charts,” said Port of Oakland Maritime Director Bryan Brandes. “We’re in the best position to help American exporters meet that demand.”

According to data released today, Oakland exported the equivalent of 25,200 20-foot containers of beef through July. The number for the same period last year was 20,100. Oakland estimated the total value of beef exports at $1.5 billion in the first seven months of 2021.

Asian markets have received nearly all of the beef exported from Oakland this year as measured by container volume, the Port said. The percentage breakdown by country:

Japan, 55 percent;
China, (including Hong Kong and Taiwan), 24 percent; and
South Korea, 19 percent.

The Port said soaring demand for U.S. beef in China is driving the export boom. American-produced beef accounts for 5 percent of all containerized exports to China. COVID-related restrictions on restaurant dining have sparked a jump in Asian retail beef sales, the Port explained.

The Port said surging beef exports validate its investments in the international cold chain. Oakland has significantly expanded chilled and frozen cargo handling capacity in the past five years. California and Midwest producers ship tons of beef to Oakland in rail cars. Product transfers at the temperature-controlled storage facilities in the heart of the Oakland Seaport to containers then move down the street to waiting for ships.

Oakland is a principal U.S. gateway for beef exports to Asia. That’s because most ships make Oakland their final North American stop before returning to Asia. Beef spends less time onboard a ship if it’s loaded in Oakland rather than at other American ports.

The Port credited U.S. beef producers with sustaining the export boom despite shipping woes. Shortages of containers and vessel space have restricted exports throughout 2021, the Port said. Shortages of refrigerated containers – essential for beef shipments – have been particularly acute, the Port added. It said beef exporters displayed diligence in finding the means to get the cargo on ships.

About the Port of Oakland

The Port of Oakland oversees the Oakland Seaport, Oakland International Airport, and nearly 20 miles of waterfront including Jack London Square. The Port’s 5-year strategic plan – Growth with Care – pairs business expansion with community benefits, envisioning more jobs and economic stimulus as the Port grows. Together with its business partners, the Port supports more than 84,000 jobs.