According to Eugene Seroka, Executive Director Port of Los Angeles, cargo at the leading U.S. container gateway was down more than 30% in the first week of May as a result especially of the Trump Administration’s tariffs on Chinese goods.
Speaking at the Port’s media briefing earlier this week, Mr. Seroka said: “Volume in the first week of May here at the Port of LA was down more than 30% on the import side of our ledger.”
He added that the decline for the rest of the month was likely to be “substantial when we close the books on this month. Although it is difficult to forecast right now with the sliding … vessel utilizations and seemingly the stop/start focus on various (trade and tariff) negotiations.”
“These tariff policies are more widespread and sweeping than any we’ve ever seen in our lifetime,” Mr Seroka said.
He also indicated that he does not expect imports to climb after last week’s 90-day truce between Washington and Beijing that temporarily lowered the duty to 30% from 145%.
Meanwhile, cancelled sailings are further reducing volumes. Mr. Seroka noted: “The impact is real … for the month of May, 80 or so, sailings were expected to arrive in Los Angeles. 17 of those have been canceled as of right now, 10 cancellations remain on the books for the month of June.”
Together, the ports of Los Angeles and Long Beach handle nearly one third of total US containerized trade. Chinese goods make up nearly 45% of cargo arriving in Los Angeles. It is estimated that major retailers have just five to seven weeks of inventory remaining before severe shortages hit store shelves.
(Photo of Port of Los Angeles)