Tag Archives: los angeles

Container Jam at L.A. Port

There appears to be no sailing around the breathtaking backup of container ships off the jammed ports of Los Angeles and Long Beach.

Newly arriving vessels are adding to a record-breaking flotilla waiting to unload cargo that on Sunday reached 73 ships, according to the Marine Exchange of Southern California, nearly double the number a month ago and expanding a fleet that has become a stark sign of the disruptions and delays roiling global supply chains. 

Cargo Ship Logjam in Los Angeles Highlights Pandemic Supply-Chain Issues
An average of 30 container ships a day have been stuck outside the Ports of Los Angeles and Long Beach just waiting to deliver their goods. The backlog is part of a global supply-chain mess spurred by the pandemic that means consumers could see delivery delays for weeks. Photo Composite: Adam Falk/The Wall Street Journal

Before the pandemic, it was unusual for more than one ship to wait for a berth.

Big vessels are continuing to join the bottleneck, experts say, because shipping lines and their cargo customers have few options for resetting countless supply chains moving goods into the U.S. that have been constructed over decades around the critical San Pedro Bay gateway now staggered by the overflowing demand for imports.

Although some ships have headed to other import gateways, and a handful of shippers have chartered smaller vessels to move goods through other ports, the diversion is minor compared with the hundreds of thousands of containers idled in the waters off Southern California.

“Everything is aligned to L.A.,” said Nathan Strang, senior trade lane manager for ocean operations at Flexport Inc., a San Francisco-based freight forwarder.

The congestion this year has been caused by a surge in imports as consumer demand in the U.S. has shifted away from services to goods and home improvements and retailers have rushed to restock inventories that were depleted last year in the early months of the pandemic.

The neighboring California ports are the principal seaborne gateway to the U.S. thanks to the growth of containerization over the past 60 years and an explosion in goods trade, particularly U.S. trade with China. Last year, the two ports handled the equivalent of 8.8 million loaded import containers, more than double the 3.9 million loaded boxes that arrived at the nation’s next busiest port at New York and New Jersey.

The California ports are in easy range of China and the factories that churn out big volumes of electronics, apparel and an array of other consumer goods. They have enough land to house dozens of cranes capable of emptying large ships as well as sprawling terminals to store boxes.

Container ships outside the Port of Oakland. Smaller ports like Oakland and Seattle can handle just a fraction of the containers processed at the ports of Los Angeles and Long Beach.Photo: Justin Sullivan/Getty Images

For the retailers that are among the major importers at Los Angeles and Long Beach, the ports offer quick reach to one of the largest population centers in the country. That means they can split arriving goods between a large local consumer base and rail links that offer steady, direct transport to the rest of the U.S. through inland hubs, with most of the boxes heading through Chicago.

Despite some shortages, the availability of trucking equipment, warehouse space and labor is also far greater than at other ports.

Shipping executives say other West Coast ports, like Oakland or Seattle, simply aren’t large enough to handle the hundreds of thousands of containers that Los Angeles and Long Beach unload, store and move by truck or rail each week.

“It would just take a very small portion of  L.A./Long Beach to overwhelm those ports,” said Craig Grossgart, senior vice president of global ocean for Seko Logistics, an Itasca, Ill.-based freight forwarder.

Above text excerpted from WSJ article.

Best SoCal Industrial MLS

The AIR CRE is the premier multiple listing service for industrial real estate such as warehouses and manufacturing buildings in Southern California. Whether you are a buyer or tenant or landlord or seller, this MLS is the service that all the top-tier brokers primarily use. It services industrial, office, retail, and other commercial real estate listings.

There are over 33,000 listings in the system for SoCal. And there are over 1,600 members in SoCal. So if you seek to search or list for sale or lease a warehouse or other commercial property in Los Angeles, Orange, San Bernardino, Riverside or Ventura counties, contact us as we are members of this MLS.

LoopNet, which is owned by Costar, is a second-tier MLS that we also use but it’s data pales in comparison to the AIR CRE and top firms mainly use it as a secondary marketing tool but don’t always put their listings there. The most active and major Los Angeles commercial real estate brokers use the AIR CRE, which is member owned and created in 1960.

AIR CRE

Market Snapshot 2021-Q1

Central Los Angeles industrial submarket overview with absorption and vacancy rate.

Supported by the phenomenal growth of e-commerce, leasing activity was strong in the first quarter after the steep declines experienced earlier in early 2020. In Q1, across the Central Market, 139 leases were signed for a total of 2,836,295 SF; the average asking rate was $0.96 PSF. Q1 leasing volume for Central LA was 25% higher than Q1 2020 levels. Another 133 warehouse properties, totaling 2,000,000 SF, were sold in the period with an average price of $291.43 PSF. The average rate will move up or down slightly quarter-to-quarter depending on how many older, functionally obsolete warehouse and manufacturing buildings are in the pool of available inventory. The limited amount of available first-generation, Class A space leases at a premium to the average rate.

Sold Warehouses Q4-2020 in Los Angeles

Map of sold buldings

Below is a list of industrial real estate listings that were sold in the 4th Quarter of 2020 over 10,000 square feet in size in the Central Los Angeles industrial submarket. Information includes: buyer, seller, sale price, square footages, and property features for warehouses and manufacturing buildings.

Sixth Street Bridge Replacement With New Design in DTLA

6th Street bridge over the Arts District East

The City of Los Angeles Bureau of Engineering is leading the construction of the new, $588 million Sixth Street Viaduct Replacement Project, the largest bridge project in the history of Los Angeles. The completed structure will be a 3,500-foot long viaduct connecting Boyle Heights and the Arts District across the Los Angeles River. The original viaduct was built in 1932, but had significantly deteriorated due to “concrete cancer”; it was demolished in 2016. The new viaduct will have ten pairs of lit arches, bike lanes and wider sidewalks, along with stairway access and bike ramps connecting to 12 acres of recreational and open space under the bridge, including the Len Hill Plaza. The bridge is funded primarily through the Federal Highway Administration, with additional City support. The viaduct will be completed in Summer 2022

Constructed in 1932, the original Sixth Street Viaduct (also known as the Sixth Street Bridge), was an important engineering landmark in the City of Los Angeles. It was one of a set of fourteen historic structures crossing the Los Angeles River, and the longest of these structures.

Due to its large size, the original Sixth Street Viaduct was constructed using an onsite concrete mixing plant. Unfortunately, the aggregate used in the concrete caused a chemical reaction known as Alkali Silica Reaction, which caused deterioration of the concrete structure within 20 years of its completion. The total project replacement cost is $488 million, making it the largest bridge project in the history of Los Angeles.

Located in a highly urbanized area just east of downtown Los Angeles, the original bridge acted as a critical transportation link between the neighborhoods of the Arts District on the west side and Boyle Heights on the east side. 

The original viaduct was demolished in 2016. The new viaduct is scheduled for completion in 2022.

The 6th Street PARC is scheduled for completion in 2024 where there will be 12-acres of open and recreational space under the viaduct, including access to the LA River, an arts plaza, public art and numerous community amenities.

Amid exclamations like “I am going to be so happy to see the bridge completed!”, the most common questions on social media were about pedestrian and bike lanes and general accessibility. The wide and separate sidewalks and bicycle lanes planned for both sides of the bridge met with high praise. https://www.sixthstreetviaduct.org