California’s ports are essential drivers of the U.S. economy, leveraging their strategic loA Key Driver of the U.S. Economycation to facilitate trade with Pacific Rim nations. Serving as pivotal gateways for global commerce, these ports are integral to the state’s role as a critical distribution hub.
Home to some of the busiest and most influential ports in the nation, California offers a diverse range of facilities, from massive container terminals to smaller, specialized operations. Each plays a unique and vital role in promoting trade, supporting robust supply chains, and sustaining thousands of jobs.
The local consumption of a significant share of the goods handled by these ports further underscores their economic importance. Together, they form a dynamic network that not only powers California’s economy but also strengthens the broader economic framework of the United States.
California Ports Day 2023: Advocating for Economic Growth
On February 15, 2023, port directors across California gathered for Ports Day, an annual advocacy event organized by the California Association of Port Authorities (CAPA). Alongside state policymakers, they highlighted the substantial impact of California’s ports on driving the economy forward.
“Each year, California ports are moving billions of dollars in trade revenue, creating millions of good-paying jobs and connecting our nation to invaluable resources across the globe,” said Danny Wan, CAPA President and Port of Oakland Executive Director. He stressed the importance of prioritizing infrastructure investments across the supply chain to support this economic ecosystem.
Economic Contributions of California Ports
The analysis revealed the following key impacts of California’s ports:
- Trade Value: In 2020, California ports handled $416 billion in waterborne trade.
- Job Creation: Approximately 3.1 million jobs are supported by port-related trade, with over 800,000 tied to exports and nearly 2.3 million tied to imports.
- Income Generation: These jobs generate $134 billion in worker income, including $42.2 billion from exports and $91.8 billion from imports.
- Tax Revenue: The trade activity contributes $38.1 billion in tax revenue nationwide.
California ports account for 38% of all containerized imports and 28% of exports in the U.S., connecting industries across the nation to global markets.
California’s Extensive Port Network
California is home to 11 major commercial ports, which together handle a significant portion of U.S. trade.
The Largest Ports
- Port of Los Angeles: The largest container port in North America.
- Port of Long Beach: A close second in container volume.
- Port of Oakland: The state’s third-largest port and among the top five busiest U.S. seaports.
Smaller but Essential Ports
- Port of San Diego: Operates maritime cargo terminals, a cruise ship terminal, and manages 34 miles of waterfront.
- Port of San Francisco: A mixed-use waterfront with maritime, historic, and recreational facilities.
- Port of Hueneme: The only deep-water harbor between Los Angeles and San Francisco Bay, specializing in automobiles and fresh produce.
- Port of West Sacramento: Focuses on bulk agricultural and construction materials.
- Port of Redwood City: Specializes in bulk and liquid cargoes.
- Port of Richmond: A leader in liquid bulk and automobile tonnage, with expanding containerized cargo capabilities.
- Port of Humboldt Bay: Supports harbor development for regional trade.
- Port of Stockton: Handles diverse cargo, including steel, wind energy, and heavy lift projects.
Advancing the Maritime Industry
Since its founding in 1940, CAPA has worked to educate policymakers about the significance of California ports while advocating for policies that support their growth. The organization also collaborates with the Federal Maritime Commission to align with national maritime interests.
With continued investment and support, California’s ports will remain a cornerstone of the U.S. economy, driving trade, job creation, and economic growth nationwide.
The Largest Ports
Port of Los Angeles: North America’s Largest and Most Influential Container Port
The Port of Los Angeles, often referred to as "America’s Port," stands as the largest container port in North America and a cornerstone of U.S. international trade. Strategically located in Southern California, it serves as a primary gateway for goods entering the United States from Asia and other global markets.
In 2020, the port managed over 9 million twenty-foot equivalent units (TEUs), and in recent years, its container volume has grown to an impressive 10.66 million TEUs annually, handling around 20% of the nation’s cargo imports. Spanning 7,500 acres and encompassing 25 cargo terminals, the port processes 222 million metric tons of cargo, accommodating 1,867 vessels annually.
The Port of Los Angeles boasts extensive infrastructure, including state-of-the-art terminals, warehouses, and seamless transportation networks that link the region to global supply chains. It is a critical hub for industries dependent on fast imports, such as electronics, textiles, and machinery, ensuring efficient distribution to consumers nationwide.
Beyond its economic impact, the port is a leader in sustainability, actively implementing green technologies and emission-reduction programs to minimize its environmental footprint. Collaborative efforts with stakeholders aim to enhance supply chain efficiency while maintaining a focus on eco-friendly practices.
With an employment impact supporting 1.6 million jobs, the Port of Los Angeles not only drives the regional economy but also plays a pivotal role in the nation’s trade relationships with key partners like China, Japan, and South Korea. Its blend of scale, efficiency, and commitment to sustainability solidifies its position as an essential asset in global commerce.
Port of Long Beach: A Close Competitor in Container Volume
Adjacent to the Port of Los Angeles, the Port of Long Beach ranks as the second-largest container port in North America, making it a powerhouse of international trade. Handling approximately 9.13 million twenty-foot equivalent units (TEUs) annually and 78.2 million metric tons of cargo, it is a cornerstone of the U.S. economy and a key player in global supply chains.
Renowned for its advanced infrastructure and cutting-edge technologies, Long Beach efficiently manages diverse cargo types, including consumer goods, industrial equipment, automobiles, and raw materials. With 80 berths and state-of-the-art automated terminals, the port has significantly increased productivity while reducing wait times, earning recognition as an industry leader in port innovation.
The port’s strategic location and seamless integration with the Port of Los Angeles amplify its role as a major trade hub, particularly with Asian markets. This partnership enhances the efficiency of both ports, solidifying their combined status as the busiest port complex in the Western Hemisphere.
In addition to its operational excellence, the Port of Long Beach is a pioneer in environmental stewardship. Its Green Port Policy emphasizes reducing air emissions, adopting clean energy solutions, and promoting sustainable practices to minimize its environmental impact. This commitment ensures that Long Beach remains competitive while addressing global concerns about climate change.
The Port of Long Beach supports approximately 370,000 jobs, reinforcing its role as a critical driver of regional and national economic growth. Its blend of technological advancements, environmental responsibility, and trade volume cements its position as a leader in global commerce.
Port of Oakland: California’s Third-Largest and Among the Top U.S. Seaports
The Port of Oakland is California’s third-largest container port and the ninth busiest in the United States, based on 2023 data. It also ranks among the four largest Pacific Coast ports, alongside Los Angeles, Long Beach, and the Northwest Seaport Alliance (Seattle and Tacoma). Located in the San Francisco Bay Area, Oakland serves as a vital gateway for goods traveling between the U.S. and the Pacific Rim, with Asia accounting for 74% of its trade. Other key markets include Europe (17%), Australia/New Zealand and Pacific islands (3%), and domestic destinations like Hawaii (5%).
In addition to its strong container traffic, Oakland plays a critical role in agricultural exports, handling goods such as fresh produce, wine, and specialty items. Its versatile operations include breakbulk, bulk, and heavy-lift cargo, supporting industries like agriculture and construction.
Recent investments in modernization have equipped the port with state-of-the-art facilities, including an expansive international terminal and advanced container-handling technology. Oakland is also committed to sustainability, implementing energy-efficient systems and reducing emissions to minimize its environmental impact.
As one of California’s three major container ports, Oakland contributes to nearly half of the nation’s total container cargo volume, underscoring its importance to both regional and national supply chains.
Smaller but Essential Ports
Port of San Diego: A Multi-Purpose Maritime Hub
The Port of San Diego is a smaller but incredibly versatile port, managing 34 miles of waterfront and supporting a range of activities from maritime cargo handling to cruise operations. Located at the southern tip of California, this port is strategically positioned to serve both domestic and international trade routes, particularly those involving Latin America and the Pacific.
In addition to its cargo operations, the Port of San Diego is a popular cruise ship terminal, attracting tourists from around the world. Its waterfront is home to a variety of public parks, wildlife reserves, and environmental initiatives, blending industrial and recreational uses. The port’s ability to diversify its operations helps to drive the local economy and supports a wide range of industries.
Port of San Francisco: A Hub for Maritime and Tourism
With its iconic waterfront, the Port of San Francisco is not only a significant maritime gateway but also a popular destination for tourists. Spanning 7.5 miles along the San Francisco Bay, the port serves both industrial and recreational purposes. It is home to historic districts, small businesses, and major cultural landmarks, such as Fisherman’s Wharf and the San Francisco Ferry Building.
While it handles smaller volumes of cargo compared to its larger counterparts, the Port of San Francisco remains essential for niche markets, such as cruise tourism, specialty imports, and exports. Its mixed-use approach—incorporating both maritime operations and public spaces—adds unique value to the region’s economy.
Port of Hueneme: A Key Player in Specialized Cargo
Located between Los Angeles and the San Francisco Bay Area, the Port of Hueneme stands out for its specialization in niche markets. It is the only deep-water harbor in California between these two major trade hubs, making it an essential gateway for goods that require specialized handling, including automobiles, fresh fruit, and produce.
This small yet significant port plays a vital role in supporting the agricultural and automotive industries, providing a direct link to markets both domestically and internationally. The Port of Hueneme has invested in modern facilities that allow it to efficiently handle a range of cargo types, from bulk materials to high-value finished products.
Port of West Sacramento: A Bulk-Cargo Powerhouse
The Port of West Sacramento is a bulk-commodity port that specializes in the import and export of agricultural products and construction materials. Located inland on the Sacramento River, this port is an integral part of California’s agricultural supply chain. It serves as a critical hub for bulk exports such as grain, hay, and other agricultural commodities, as well as bulk imports like steel and machinery.
With over 480 acres of maritime properties and 700,000 square feet of storage space, the Port of West Sacramento is well-equipped to handle large-scale bulk operations. It serves as a vital link between the state’s inland agricultural regions and international markets, supporting the broader agricultural economy of California.
Port of Redwood City: A Key Regional Deep-Water Port
Located 18 nautical miles south of San Francisco, the Port of Redwood City is the only deep-water port in the south San Francisco Bay. This port specializes in bulk, neo-bulk, and liquid cargoes, providing essential infrastructure for industries that require these specialized cargo handling capabilities. Its strategic location and deep-water access make it an important player in regional trade, serving both the San Francisco Bay Area and the broader Northern California region.
Port of Richmond: A Leader in Liquid Bulk and Automobile Tonnage
The Port of Richmond is a major center for liquid bulk and automobile tonnage on San Francisco Bay. With roots in petroleum and liquid bulk cargo, the port has expanded its capabilities to include dry bulk, breakbulk, and containerized cargo. It is particularly well-suited to handle a range of industrial products, from chemicals and petroleum to automobiles and construction materials.
Port of Humboldt Bay: Developing Regional Trade Potential
Located about 225 miles north of San Francisco, the Port of Humboldt Bay is a smaller port with significant potential for regional trade development. It offers 33 miles of shoreline, and about 15% of this area is considered suitable for harbor facility development. While the port is still in the early stages of expansion, it offers a promising opportunity for growth in the coming years.
Port of Stockton: A Strategic Deep-Water Hub for Diverse Cargo
The Port of Stockton, with its 35-foot deep-water capacity, is a key player in handling diverse cargo types, from containers and steel to wind energy and heavy-lift projects. With more than 2,000 acres of port facilities and extensive warehousing options, it serves as a crucial logistics hub for Northern California. The port’s ability to handle a wide variety of cargo types makes it a vital link in the regional and national supply chain.
Final Remarks: California Ports—A Pillar of the U.S. Economy
California’s ports are vital to the U.S. economy, handling $416 billion in waterborne trade annually and accounting for 38% of imports and 28% of exports nationwide. Supporting 3.1 million jobs and generating $134 billion in income, these ports are integral to trade, supply chains, and economic growth.
Major hubs like Los Angeles, Long Beach, and Oakland lead in container volume and global connectivity, while smaller ports such as Hueneme and Stockton excel in specialized cargo. Together, they form a robust network driving innovation, sustainability, and environmental stewardship.
With ongoing modernization and advocacy, California’s ports will continue to anchor the nation’s trade and economic strength.
