30.8 C
Washington D.C.
Wednesday, June 25, 2025
HomeBusinessU.S. West Coast Ports Face Decline Amid Tariffs but Expect Summer Surge

U.S. West Coast Ports Face Decline Amid Tariffs but Expect Summer Surge

U.S. West Coast ports are facing a sharp decline in cargo volumes due to ongoing U.S. tariff impacts. In May, the Port of Long Beach handled 639,160 TEUs, down 8.2% compared to last year. Similarly, the Port of Los Angeles processed 716,619 TEUs, marking a 5% drop. These declines reflect the pressure tariffs place on global trade flows.

At Long Beach, imports fell 13.4% to 299,116 TEUs, while exports decreased 18.6% to 82,149 TEUs. On the other hand, empty container volumes grew slightly by 3.2%, reaching 257,895 TEUs. Meanwhile, Los Angeles experienced a 9% drop in loaded imports and a 5% fall in exports. Gene Seroka, the port’s executive director, noted May was their lowest monthly cargo volume in over two years.

Despite these challenges, port officials remain hopeful for a rebound. Mario Cordero, CEO of the Port of Long Beach, expects cargo volumes to rise in the upcoming peak shipping season. He explained that retailers usually stock up in late June and July for back-to-school and winter holiday demands. This optimism follows a temporary reduction in tariffs, which has helped restart some delayed shipments.

Earlier, the Trump administration imposed a 145% tariff on Chinese goods in April. This move caused many retailers to pause or cancel orders. However, the tariffs were lowered to 30% with a 90-day pause lasting until August 12. Similar pauses on reciprocal tariffs with other countries will continue until July 9.

Looking ahead, the National Retail Federation’s Global Port Tracker predicts a mixed outlook. From June through August, imports should increase due to the tariff pause. Yet, in late 2025, volumes may drop sharply. September imports are forecast to fall 21.8% year-over-year, while October could see a 19.8% decrease.

Still, both ports show strong year-to-date numbers. Long Beach has processed 4,042,228 TEUs in the first five months of 2025, up 17.2% from 2024. Los Angeles handled 4,063,472 TEUs, a 4% increase from last year’s period. These figures suggest resilience despite short-term tariff-related setbacks.

For more business updates, visit DC Brief.

RELATED ARTICLES

Most Popular