Inbound shipments to the Port of Los Angeles — the busiest container hub within the US — dropped as a lot as 30% in early Could as President Donald Trump’s tariffs discourage commerce.
“Fewer containers imply much less work on the waterfront, from the variety of labor gangs which can be on the market responding to the shift necessities of cargo, to the truckers and warehouse employees,” Port of Los Angeles Government Director Gene Seroka stated on a name with reporters Monday. “The influence was felt virtually instantly throughout that first week of Could.”
The drop in port exercise got here as importers and retailers — particularly these with enterprise in China — grappled with Trump’s tariffs introduced in early April.
Earlier than then, importers rushed to carry items into the US to get forward of the levies. Final month, the Port of LA dealt with roughly 843,000 twenty-foot equal items, or TEUs, which marked a rise of 9.4% over April of final yr, based on a assertion from the port.
Seroka famous that exports declined for a fifth month in April as different international locations responded with retaliatory tariffs, notably for US agricultural and manufactured items.
A brief deal reached final week between the US and China to decrease tariffs on one another for 90 days might assist reverse a number of the hunch. The outcome could also be an uptick in cargo volumes in June and July as importers transfer stock that had been held in warehouses in the course of the “sky excessive” tariff interval, Seroka stated.
Nonetheless, tariffs stay elevated and commerce coverage unsure, so it is going to proceed to be tough to forecast cargo volumes, Seroka cautioned. Thus far this month, 17 out of 80 sailings have been canceled and one other 10 cancellations subsequent month are anticipated, he stated.
Learn Extra: Trump’s Offers Forged China Each As Foe And Prize, Blurring Indicators
The Port of Lengthy Seashore, which shares the San Pedro Bay with the Port of LA, can be getting ready for much less cargo after seeing its busiest April on file. Dockworkers there moved 867,493 TEUs final month, up 15.6% from final yr.
“After shifting essentially the most containerized cargo of any American port within the first quarter of 2025, we at the moment are anticipating a greater than 10% dropoff in imports in Could — and the consequences might be felt past the docks,” stated Port of Lengthy Seashore CEO Mario Cordero stated in a assertion final week.
The commerce uncertainty and decline in export demand is already impacting the Port of Oakland, which dealt with 185,499 TEUs in April, marking a 14.7% lower in general cargo quantity from March 2025, the port stated Monday.
This story was initially featured on Fortune.com
