Overseas Shipping Rates Decline; SoCal Ports’ Traffic Strong

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orldwide international shipping rates are dropping as overall demand dips and more big ships come on line, but traffic into the busy ports in southern California is projected to continue rising this year, the Los Angeles Times reported.

The two ports of Long Beach and Los Angeles — which form the largest U.S. port complex — are predicted to handle the equivalent of 15.6 million 20-foot equivalent units this year, an increase of about 11% from last year’s record pace, the paper said.

Last year pace was 8% higher than 2004.

World trade in 2003 and 2004 rose by 14%, the Times said, citing analysts. The growth rate slowed to 11.5% last year and is expected to drop to below 10% this year and about 9% next year.

Worldwide, container ship capacity will grow by 14% this year and 11% next year, and shipping rates have dropped, the Times reported.

After five years of rising freight shipping rates, the world’s largest shipping line, A.P. Moller-Maersk, is warning of lower earnings, and maritime experts said a slowing global economy could reduce demand, the paper said.