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LA Port Shipments Fell 30% in Early May After Trump Tariffs
The Port of Los Angeles experienced a significant decline in inbound shipments, with a drop of up to 30% in early May due to tariffs implemented by the Trump administration, which discouraged trade. This decline impacted the workload for labor gangs, truckers, and warehouse workers, as stated by Port Executive Director Gene Seroka. Prior to the tariffs, importers had rushed to bring goods into the U.S., leading to an impressive April, where 843,000 TEUs were handled—a 9.4% increase from the previous year. Exports also fell for a fifth consecutive month, likely due to retaliatory tariffs from other countries, particularly affecting U.S. agricultural and manufactured products.
A temporary agreement between the U.S. and China to reduce tariffs for 90 days may provide some relief in cargo volumes, potentially reversing the trends in June and July as importers clear out warehouses filled during the higher tariff period. However, uncertainty in trade policy and elevated tariffs continue to complicate forecasts for cargo volumes. The Port of Long Beach is also bracing for a decrease in cargo, following a record month in April, while the Port of Oakland reported a 14.7% decrease in overall cargo volume from March.
In my expert opinion, these fluctuations highlight the sensitivity of global trade to tariff policies. Reductions in cargo volumes can have ripple effects throughout the supply chain—impacting not only port operations but also the broader economy and employment within related industries. Sustained uncertainty in trade relations necessitates that ports adapt by enhancing their operational flexibility and exploring new markets to mitigate risks associated with dependence on traditional trade routes.
A temporary agreement between the U.S. and China to reduce tariffs for 90 days may provide some relief in cargo volumes, potentially reversing the trends in June and July as importers clear out warehouses filled during the higher tariff period. However, uncertainty in trade policy and elevated tariffs continue to complicate forecasts for cargo volumes. The Port of Long Beach is also bracing for a decrease in cargo, following a record month in April, while the Port of Oakland reported a 14.7% decrease in overall cargo volume from March.
In my expert opinion, these fluctuations highlight the sensitivity of global trade to tariff policies. Reductions in cargo volumes can have ripple effects throughout the supply chain—impacting not only port operations but also the broader economy and employment within related industries. Sustained uncertainty in trade relations necessitates that ports adapt by enhancing their operational flexibility and exploring new markets to mitigate risks associated with dependence on traditional trade routes.
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