Inbound shipments to the Port of Los Angeles, the busiest container hub in the US, experienced a decline of up to 30% in early May. This reduction is attributed to tariffs imposed under President Donald Trump, which have discouraged trade.
Gene Seroka, Executive Director of the Port of Los Angeles, stated in a call with reporters that the decrease in container volumes affected various sectors of waterfront employment, including labor gangs, truckers, and warehouse workers. The impact became apparent during the first week of May.
The drop coincided with importers and retailers, particularly those involved in China, responding to tariffs announced in early April. Prior to the tariffs, importers expedited goods into the US to bypass the levies. In April, the Port of LA handled about 843,000 twenty-foot equivalent units (TEUs), marking a 9.4% increase over the same period last year, according to a statement from the port.
Seroka also noted that exports saw a fifth consecutive month of decline in April due to retaliatory tariffs from other countries, especially on US agricultural and manufactured goods.
A temporary agreement between the US and China to lower tariffs for 90 days could potentially reverse some of the downturn. This deal might lead to an increase in cargo volumes in June and July as importers clear warehouses during the high tariff period, according to Seroka.
Despite this, elevated tariffs and uncertain trade policies continue to pose challenges in forecasting cargo volumes. Seroka mentioned that 17 out of 80 sailings have been canceled this month, with an additional 10 cancellations anticipated next month.
Similarly, the Port of Long Beach is preparing for a decrease in cargo following its busiest April on record, having moved 867,493 TEUs last month, a 15.6% increase from last year. Mario Cordero, CEO of the Port of Long Beach, expressed concerns about a projected drop of more than 10% in imports in May.
The trade uncertainty and reduced export demand are also affecting the Port of Oakland, which reported handling 185,499 TEUs in April, a decrease of 14.7% in overall cargo volume from March 2025, as reported by the port on Monday.
This report was initially featured on Fortune.com.
