Imports to plummet next week at LA port, director says

The Port of Los Angeles is anticipating incoming cargo volume next week to drop by more than a third compared with the same period in 2024, Executive Director Gene Seroka said yesterday on CNBC’s “Squawk Box.”

Chinese imports into the port are expected to drop as President Donald Trump’s tariffs lead retailers reduce their import orders.

Seroka said the port's optimizer, which measures loadings in Asia, estimates that imports will be down over 35% the week of May 5, as a number of major retailers have stopped all shipments from China based on the tariffs, he said. Shipments from China make up about 45% of the port's business.

“Realistically speaking, until some accord or framework can be reached with China, the volume coming out of there — save a couple of different commodities — will be very light at best,” Seroka said.

On April 2, Trump announced increased tariffs on Chinese goods. Retaliatory tariffs and other changes to his original order have resulted in a 145% tariff on Chinese goods as of today.

U.S. retailers have five to seven weeks before curtailed shipments begin to impact their operations, Seroka said. Roughly a quarter of ships scheduled to arrive at the Port of Los Angeles likely will be canceled in May, he said. 

Rather than the empty shelves consumers saw during the pandemic, the increased tariffs will lead to low stocks of specific items and higher prices, Seroka said.

Pacific Harbor Line Inc. operates the intermodal rail network on the dock, which connects to the Alameda Corridor and the national rail network. Union Pacific Railroad and BNSF Railway Co. operate off-dock mainline rail yards at the port.