Despite concerns that federal policies and new tariffs would slow down trade, the Port of Los Angeles reported Friday strong and consistent cargo volume moving through its facility in March, marking an increase of 4.7% compared to the same month last year.
According to port officials, dock workers processed 778,406 twenty- foot equivalent units last month, and ended the first quarter with 2.5 million TEUs processed, 5.2% ahead of the same period in 2024.
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Loaded imports stood at 385,531 TEUs, a 1.6% increase, and loaded exports came in at 122,975 TEUs, a decrease of 15%, in March 2024. The port processed 269,900 empty containers, a 23% increase.
During an online media briefing, Port of Los Angeles Executive Director Gene Seroka noted that cargo volume remained "strong" throughout the first quarter, marking a year-over-year growth in 18 of the last 20 months.
He was also encouraged with the start of the second quarter, as importers prepare to plan for spring and summer fashion, and back to school.
"We have a few additional ship services headed our way, and importers are still brining what may be the end of the extra inventory ahead of these tariffs," Seroka said.
But, he mentioned that they could start seeing a drop in cargo volume as early as May.
"However, with tariff and counter tariffs dominating the news, I expect we'll see cargo decline in the second half of the year at least 10% compared to 2024," Seroka said. "That's because many importers have already brought their goods in early, and as prices begin to rise, consumers will think twice about many purchases."
Last week, President Donald Trump announced sweeping tariffs for U.S. trading partners, which later sent the stock markets plunging. He later rescinded those higher tariffs and implemented a baseline of tariff of 10%, except for China, which was slapped with a 145% tariff on its exports.
On Thursday, the president announced he would return to the higher tariff rates if he can't reach a deal with trading partners during a 90-day pause.
Trump's trade policy has sought to address what his administration has described as unfair trade with other nations. He also intended to boost manufacturing, raise revenue and pay down the national debt.
Seroka noted the tariffs on all goods made in China, represent about 40% of the imports that pass through the port's terminals, likely increasing costs for anything bought from China by two-and-a-half times.
"Here in Los Angeles, tariffs will affect port related jobs because, as we know, fewer containers means fewer jobs here at the port," Seroka said, adding he was concerned for small- to mid-sized companies that are not able to bring in cargo early. Those companies will most likely face higher market prices moving forward.
Joe Kramek, president and CEO of the World Shipping Council, joined Seroka to discuss the impact of proposed fees on container ships built in China, decarbonization efforts of the supply chain and other trade topics.
Kramek said the council supports Trump's efforts to revitalize the U.S. maritime industry.
"We have presently two things that both traders and markets hate, which is uncertainty and unpredictability," Kramek said. "So we hope we can get beyond that, but ... it certainly does seem there's going to be a reduction in that trade."
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