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 mean less work on the waterfront, from the number of labor gangs that are out there responding to the shift requirements of cargo, to the truckers and warehouse workers,” Port of Los Angeles Government Director Gene Seroka stated on a name with reporters Monday. “The impact was felt almost immediately during that first week of May.”
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 convey 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 short lived deal reached final week between the US and China to decrease tariffs on one another for 90 days might assist reverse among the hunch. The consequence could also be an uptick in cargo volumes in June and July as importers transfer stock that had been held in warehouses through the “sky high” tariff interval, Seroka stated.
Nonetheless, tariffs stay elevated and commerce coverage unsure, so it can proceed to be troublesome to forecast cargo volumes, Seroka cautioned. To this point this month, 17 out of 80 sailings have been canceled and one other 10 cancellations subsequent month are anticipated, he stated.
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The Port of Lengthy Seaside, which shares the San Pedro Bay with the Port of LA, can be making ready for much less cargo after seeing its busiest April on report. Dockworkers there moved 867,493 TEUs final month, up 15.6% from final yr.
“After moving the most containerized cargo of any American port in the first quarter of 2025, we are now anticipating a more than 10% dropoff in imports in May — and the effects will be felt beyond the docks,” stated Port of Lengthy Seaside 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 total cargo quantity from March 2025, the port stated Monday.
This story was initially featured on Fortune.com
