The Port of Los Angeles (Port of LA) reported another month of softer cargo volumes in January, driven by combined challenges to port operations, including the persisting high inflation, Lunar New Year factory closures, and still high inventories among retailers.

North America's busiest port processed 726,014 Twenty-Foot Equivalent Units (TEUs) in January, a 16% decrease from the previous January’s all-time record.

"We expect softer global trade throughout the first quarter, particularly compared to last year’s record-breaking start," Gene Seroka, executive director of Port of Los Angeles, told a media briefing.

"Many factories in Asia have had extended Lunar New Year closures, retailers continue to discount products to clear warehouses, and inflation-led economic concerns remain top of mind for Americans," Seroka added.

The Port of LA chief noted, however, that docks have been cleared and ready for more cargo volumes in the coming months.

"With capacity on our docks today, we're ready to unlock new levels of value and service at the Port of Los Angeles," Seroka said.

For January 2023, the port noted that loaded imports reached 372,040 TEUs, also down 13% compared to the previous year.

Meanwhile, loaded exports came in at 102,723 TEUs, an increase of 2.5% compared to last year.

During the period, Port of LA said empty containers landed at 251,251 TEUs, a 26% year-over-year decline.