Laredo becomes No. 1 trade port in the US Laredo passes LA, takes over as No. 1 port for first time

Trucks enter the United States at the World Trade Bridge in Laredo during 2017. Laredo has surpassed Los Angeles to become the No. 1 port in the U.S. for the first time. Trucks enter the United States at the World Trade Bridge in Laredo during 2017. Laredo has surpassed Los Angeles to become the No. 1 port in the U.S. for the first time. Photo: Bob Owen / San Antonio Express-News File Photo: Bob Owen / San Antonio Express-News File Image 1 of / 3 Caption Close Laredo becomes No. 1 trade port in the US 1 / 3 Back to Gallery

In March, trade facilitated through the City of Laredo surpassed that of Los Angeles for the first time ever, making Laredo the No. 1 port in the country, be it land, sea or air.

Local leaders have long touted Laredo’s ranking as the No. 1 inland port in the U.S. as proof of the important role the city plays in state and national economies. And since 97% of trade coming through Laredo’s bridges is with Mexico, leaders often point to the financial significance of this binational relationship when ties to Mexico are under threat.

Laredo Mayor Pete Saenz was in Austin on Tuesday for a meeting on the Texas-Mexico Border Transportation Master Plan, which seeks to identify important trade corridors in both Texas and Mexico, and create a plan to fund their growth. As the No. 1 inland port in the country, it has been important for Laredo to be represented at meetings such as these, Saenz said.

After the meeting, though, Laredo was not just the No. 1 inland port, but the No. 1 port overall. Saenz said he was at lunch when someone texted him the news. He was elated and taken aback. He added it was outstanding news for the City of Laredo, and a ranking they have been pursuing.

“Us, the city — we felt that with time we could reach that goal,” he said.

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The news was announced Tuesday in an article on Forbes.com by Ken Roberts, a trade data analyst who produces annual publications for cities across the country. He said he has been working on Laredo’s annual TradeNumbers booklet for more than 10 years.

In March, the Port Laredo’s trade value was $20.09 billion; in the Port of Los Angeles, it was $19.66 billion, Roberts reports. Laredo’s trade increased almost 10% from February to March, while Los Angeles’ decreased 10%, he said.

Roberts attributes this change in rankings mainly to the trade war that has unfurled between the U.S. and China. Much like Laredo is dependent on Mexico for international trade, the Port of Los Angeles is dependent on China for its trade industry. In Los Angeles, trade with China is down more than 17% this year, and in Laredo, trade with Mexico is up 1.5%, Roberts reports.

“Although it is just one month of trade ... it is just one more sign that President Trump’s efforts to force change in China’s policies is having an impact,” Roberts wrote.

Roberts told LMT that it’s incredibly hard to know if these reshuffled rankings will keep Laredo on top into April. It all depends on politics and if the trade war with China can be resolved, he said. He added he has been watching the gap close between Laredo and Los Angeles since last summer when soybean exports to China fell dramatically.

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Laredo has managed to keep growing, “while Port Los Angeles was just whacked this year,” he said.

“The good news for Port Laredo is that at the moment there is nothing to derail its trade with Mexico. ... It’s been growing strongly for several years,” Roberts said.

He called Laredo the little engine that could — the No. 1 port above huge cities like Los Angeles and New York.

Roberts said we should know in about three weeks how these cities all ranked in April. For eight days last month, Laredo’s international bridges slowed down dramatically as about 15% of its Customs and Border Protection officers were temporarily reassigned to help Border Patrol in the Valley. It took as long as 11 hours to cross the World Trade Bridge, where it usually takes three at peak traffic.

Roberts said he is unsure how this will affect April’s trade numbers.

Mayor Saenz said he attributes Laredo’s success to its port efficiency, close ties to the customs brokers in Nuevo Laredo, Customs and Border Protection, and coordinating with the industry to see exactly what they need. He added that being named the No. 1 port is a huge marketing tool for the city.

“These are all good things that will help us further develop and grow in a good way,” he said.

In a news release Tuesday, Co-Interim City Managers Rosario Cabello and Robert Eads said the city has made monumental strides partnering with the private sector.

“This ranking signifies more good-paying jobs, further expansion and development, and most importantly, a better quality of life for all Laredoans. We look forward to working every day to build up our community,” said the two in a release.

Year to date, the Port of Los Angeles’ trade value is still well above Laredo’s at $66.76 billion. Laredo’s is $56.72 billion.

Julia Wallace may be reached at 956-728-2543 jwallace@lmtonline.com