The pandemic struck hard in the spring of 2020 in Port Laredo, which had been the nation’s second-ranked port after the Port of Los Angeles for years.
Through May, when U.S. trade bottomed out, Port Laredo’s trade had fallen more than any of the more than 450 U.S. airports, seaports and border crossings, more than $225.6 billion. The percentage decline was 23.33%, more than any other port in the nation’s top 20 and 71% more than the national average.
It slipped from No. 2 to No. 4.
This is the third in a series of columns I am writing focused on the nation’s top “ports” — airports, seaports or border crossings — and how they are faring compared not only to last year, in the midst of the pandemic, but previous, more normal years.
These columns will include a look at top trade partners, top exports and top imports for each — and some of the factors influencing the results.
In addition to Port Laredo, I will include the top-ranked Port of Los Angeles, O’Hare International Airport, New York’s JFK International Airport, the Port of Newark and Elizabeth Marine Terminal in New Jersey, the Port of Houston, Detroit’s Ambassador Bridge, the Port of New Orleans, Los Angeles International Airport and the Port of Savannah.
At Port Laredo one year later, trade is rebounding at the port responsible for 37% of U.S. trade with Mexico, which is once again the nation’s No. 1 trade partner. (About 98% of Port Laredo’s trade is with Mexico.)
Through May, the latest data available from the U.S. Census Bureau, Port Laredo’s trade is up 33.35%, more than any other top 20 port and 61.7% faster than the U.S. average. That’s a rebound.
It now ranks third nationally, trailing only the Port of Los Angeles and O’Hare International.
Port Laredo’s $99.88 billion in 2021 trade has it on a record pace, ahead of the 2018 mark, albeit by a slender 2.39%. The current global shortage of computer chips could be a factor, though there are some indications that issue is waning.
Port Laredo has another distinction. It tends to rank either first or second nationally for the value of it exports.
For the third time in four years — the first five months of 2020 being the exception — its exports have topped $40 billion, second this year only to New York’s JFK International Airport.
Those exports tend to be led, as do its imports, by the automotive industry, manufacturing for which is strong just south of the U.S. border.
Although only two of the top five exports in May were automotive-related, top-ranked motor vehicle parts — generally for the body of the vehicle — and diesel engines, a bevy of other exports also rank high by value, including passenger vehicles; catalytic converters, oil and air filters; engine parts; anti-knock additives; insulated wire and cable; rubber tires, compressors and pumps; and more.
On the import side, four of the top five in May were tied directly to the automotive industry — motor vehicle parts, passenger vehicles, tractors (the front part of those 18-wheelers traveling down highways) and commercial vehicles (meaning those for carrying goods rather than people).
Unlike the Port of Los Angles and O’Hare, which rank ahead of Port Laredo, its trade is slightly more balanced than overall U.S. trade, with 41% an export and 59% an import. The U.S. average is 39% exports.
The Port of Los Angeles is at 90% imports while O’Hare is at 77%.
Because of that relatively balanced trade, and the volume of that trade, Port Laredo leads the nation in more than 150 export categories year-to-date and about 75 import categories.
Source: Forbes