Port of LA expects to begin seeing the drop in volumes due to the impact of the tariffs
The port reported only six containerships at berth on April 29, down from 14 on April 25. While 44 vessels from Asia are inbound but outside the 40-nautical-mile zone, carriers have canceled 20 sailings in May, removing 253,500 TEU of capacity. An additional 10 sailings, equating to 117,500 TEU, have been canceled for June. Seroka noted: “The cancellations in May represent approximately a quarter of the usual number of ships arriving in the port.” These reductions will affect jobs for longshoremen, truckers, and warehouse workers.
The slowdown is impacting the broader U.S. economy. The Conference Board reported that consumer confidence dropped to a five-year low in April, reaching levels not seen since May 2020. The consumer confidence index fell 7.9 points to 86, driven by concerns over job security and potential economic downturn.
Seroka predicted that consumers might notice fewer product options in retail stores due to the import slowdown. Other analysts have warned of possible shortages similar to those during the pandemic’s peak. Retailers increased shipments in March to build inventory, with the Port of Los Angeles reporting a nearly 5 percent rise in March volumes and a first-quarter increase exceeding 5 percent. Seroka estimated: “Retailers have about five to seven weeks of full inventory left on their shelves.”
The U.S. Commerce Department’s March trade report showed a record goods trade deficit of $162 billion, with imports reaching over $340 billion. The trade gap grew by nearly 10 percent, or more than $16 billion, despite a $2 billion rise in exports. Seroka indicated that shipments from China, except for select commodities, are expected to remain minimal until trade agreements are reached.
